how the internet of things will change homes and homebuilding

© 2015 HomeSphere, Inc.

How the Internet of Things Will Change Homes and Homebuilding

PCBC 2015

June 25, 2015How the Internet of Things Will Change Homes and HomebuildingA Panel at the Pacific Coast Builders Show (PCBC)June 25 2015

The Experts

Director, Design Lens

John Burns Real Estate Consulting

President HomeSphere

Director of Marketing,

ConnectivityLiftMaster

Co-founderRachio

Juan Lopez Chris KleinJohn WebsterIsabell KerinsGlenn Renner

Director of Residential New

Construction Lennox Industries


Learning Outcomes

• Gain understanding of the IoT market and its steep growth trajectory.

• Hear how IoT home products generatesales and deliver benefits for builders/homebuyers.

• Understand the current adoption rate for connected products.

• See into the future of connected home design.


IoT= The Place to Be

Estimated Device Shipments by Sector

The Internet of Things: The Future of Consumer Adoption, Acquity Group, 2014

IoT for the Home = Most Desirable

Smart thermostat

Wearable fitness

Connected security

Smart fridge

Smart watch

Self-driving vacuum

Wearable display

Smart clothing

0 5 10 15 20 25 30 35

5 years1 year

The Internet of Things: The Future of Consumer Adoption, Acquity Group, 2014

The Future of Consumer Adoption

IoT for the Home: A Booming Market

2014 2015 2016 2017 2018 2019$0

$100

$200

$300

$400

$500

Connected-Home Revenue (in Billions)

The Connected Home Report, BI Intelligence, 2014

Adoption Rates by Category

Global Connected-Home Device Shipments by Category

The Connected Home Report, BI Intelligence, 2014

Consumer Insights

National

New Home Shopper

Preferences


More Time. More Savings. More Comfort.

The key ingredients to good technology?


Energy Savings = Top Priority

91%want energy-efficient home

products

if it will save on their

monthly

expenses.


65%said they would pay

$7,500 or more for green

products if they returned

monthly savings.

Buyers Pay to Save


Top 5 Energy-Efficient Features

1. Newer windows

2. Programmable thermostat

3. Adequate insulation

4. New A/C unit

5. High insulation standards


What smart-home products generatesales and deliver benefits for

builders/homebuyers?


25% want a

smart home monitoring system

for$7,000.


Smart Systems that Intelligently Manage People’s Living Environment

iComfort S30 smart communicating thermostat

Control from smart device


Smart Systems that Intelligently Manage People’s Living Environment

Perfect – Temp“Feels Like” Comfort

Remote MonitoringSave $’s

Performance Reportssave $’s

• Advance warning of a problem-prognostics

• Truly proactive diagnostics

• Alerts HO/Dealer of issues before they are problems

Smart Away –Schedule IQ

• Uses the GPS on your mobile phone to detect if you are home or away

• Automatically adjusts cooling/heating levels based on HO’s geographic location

• Adapts to unpredictable routine’s

Geo – Fencing Technology Saves Energy - $’s

Allergen Alert - Comfort

Monitors zip code for air quality - auto adds filtration

Peace of Mind


This happens to us all

“DID I LEAVE THE GARAGE DOOR OPEN?” …THAT MOMENT


MyQ® Partnerships

MyQ® controlsNest thermostat

MyQ® works Alarm.com app

MyQ® works with Wink App

We’re partnering with leaders in Home Automation to increase the value of MyQ® to your homebuyers.


Sales Opportunities: Smart Sprinklers


What is the current adoption rate for connected products at

your company/in your industry?


97% want the lowest operating costs.


90% want to prepare for rising energy costs.


73%

will buy design

features over

energy-efficient

features.


Only

7%

said energy efficiency was

not important to them.


Optimistic Growth20

12

2013

2014

2015

2016

2017

0

1

2

3

4

5

6

Worldwide Shipment Forecast: Smart

Thermostats (units)

Mill

ions

• Acceptance of smart control

products has been increasing at

a rapid rate, driven by smartphone

penetration and increased

consumer awareness.• Lennox adoption rate has

increased significantly.• Over half the high-end systems

sold are controlled by smart

thermostats.• Smart technology is a major driver

for the HVAC industry.• Wi-Fi thermostat sales will double

by 2017; 10X by 2020.


The Connected Garage User


What Connected Garage Users Tell Us

70% of homeowners use the garage as primary door 76% of the time

Consumer feedback – LiftMaster research (Nov 2014)

Adoption rates: Smart sprinklers

• If it ain’t broke don’t fix it: historical sprinkler controller turnover rate has been

around 6%.• But when it comes to smart,

86% of customers updated a working controller for a smart controller.

• Market forces like drought, rising water prices and growing channels like Amazon are expanding the turnover rate.


What does the future hold?


What are some of the community and product solutions out there today?

1. Security2. Temperature control3. Lighting4. Entertainment5. Appliances6. Measured performance7. Better health8. Community

The Future


Lose your keys?Who needs them anymore.Keypad entry.You can let a guest in with an app.Works with in-house video and motion sensors.

AdvantageNo key needed.Security.Convenience.

The Future


Source Photo: Warmly YoursHeated floors? Heated Driveway.A whole new convenience. Radiant heat flooring — a heated mat under your hardwood or tile that keeps your floor — and your toes — warm. Add to the outside and no more shoveling snow.

AdvantageConvenience. Time. Life made easy.

The Future


A Sound Decision:Wireless Speakers in Can LightsCan lights, small circular lights inset in the ceiling, add elegance to any room. Now you can have music too.

AdvantageEasy sound that saves space.

Source: CNBCPhoto: Klipsch

The Future


Smart Grid AppliancesTurn appliances on remotely.Start dinner as you are leaving the office.Wash a load of laundry while on vacation.Monitor energy usage — from ANYWHERE.Turn your appliances on during non-peak times.What’s next? Tell your robot vacuum to have the house cleaned before you get home!

AdvantagePerformance. Longer-term savings.

Source: CNBCPhoto: LG Electronics

The Future


Health devices as the Boomers get olderTelehealth links doctors and patients to track health and safety.Video conferencing with a physician for a scheduled checkup. Track diabetics using a tablet to transmit their daily glucose levels.Updates on heart rate and weight whenever you step on the sensor-equipped treadmill in your home gym.

AdvantageComfort. Time. Potentially Savings.

The Future


Virtual ViewNot everyone is blessed with the pocketbook to have an apartment or home with stunning view.

AdvantageViews sell. Emotion. Comfort.

Source: CNBCPhoto: The Sky Factory

The Future


Order Your Groceries Too?Connects to the InternetManage the food insideInteractive grocery list and recipes take advantage of the items you haveTracks expiration datesOrder food from an online grocery store directly through the embedded LCD screen.

AdvantageSave from wasting food.Maximizes recipes with food you have.Easy ordering.Saves time.

The Future


The Future

An intranet brought to you. Made for you.

AdvantageTime. Money. Comfort. Connect.

Source: Nextdoor


The Future

Your Butler. Really.Manages laundry/dry cleaningDelivers groceriesPicks up packagesSend Mom a birthday cardStocks your refrigeratorLearns behaviorCustomized for your preferences

AdvantageConvenience. Time.


The Future

A new kind of power?Tesla is working on a house battery.Off the grid solution.Lower priced power solution.

AdvantageSaves money.Control.

Source: ZME SciencePhoto: Tesla Home Battery


1950’s

1970’s

2000’s

Expanding core thermostat functionality to a ‘lifestyle’

tool…integrating other apps and services

Source: IMS Research Worldwide Shipment Forecast for Remote Access and Control Thermostats (Millions), Gartner

Prognostics

Smart Diagnostics

Performance Metrics

IoT enablement

Wireless connectivity

2015

http://www.google.com/url?url=http://windowssupportnow.com/windows-support-2/windows-support-to-enable-wireless-connections-on-your-os/&rct=j&frm=1&q=&esrc=s&sa=U&ei=4ZviU5P-LcXZoATVh4GYCg&ved=0CBwQ9QEwAw&sig2=d20_QICLejYrXRts6I_c1w&usg=AFQjCNG7W4oIDsyIlTz8tQT1B5eV_K3zPQ

IoT is the Future

By 2020, 30 billion things will be

connected…every product > $100 will

be smart

• New technology will be a “Game Changer”• As new technologies emerge pieces will drop for smart products (i.e., mobile

phones)• As prices drop adoption rates for smart home products will soar


The Tipping Point

Berg Insights, 2013 LiftMaster analysis, 2015

IoT / Connected Home 50% tipping point = 2021

Device makers, service providers and DIY home automation ecosystems will drive adoption

The Early Years:

DIY Market

Growing Up:

Remodelers and Landscape

Professionals

Maturation:

Customer Demand in New

Builds

Future of Smart Sprinklers


Conclusions

• Now is the time to capture your share of the market, expected to reach $490 billion by 2020

• Demand for IoT for the home will continue to grow, driven by: • Full penetration of smart phone usage • A growing IoT market (expected to reach $25 billion by 2020) with smart

home technology at the top of consumer’s minds • Advances in technology that will overcome security and pricing

concerns, lowering prices• Remember: • Comfort and security are top benefits• Cost savings remain at the forefront

of consumers’ minds• Energy savings and “being green”

remain important to buyers


QUESTIONS?


The Experts

Glenn Renner, HomeSphere

720-974-6183, [email protected]

Isabell Kerins, John Burns Real Estate Consulting


John Webster, Lennox Industries Intl.


Juan Lopez, LiftMaster


Chris Klein, Rachio



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