Mounting consumer interest — and expectations — in the concept of a fully connected home continues to fuel new revenue potential for security systems integrators and installers.
Technology has advanced so that home audio, video, lighting, security, sprinklers and more can run on a centralized network, acting as the aggregate for a true “digital home” experience.
According to the Consumer Electronics Association (CEA), the fastest growing product categories in 2006 included DVRs, home network routers, MP3 players and cable modems. Demand for broadband is also on a sharp upward trajectory: 35 percent of U.S. households have a high-speed Internet connection, according to International Data Corp. (IDC). By 2010, adoption is expected to reach 60 percent.
Consumers are indeed wired and ready for the digital home experience. They just need dealers and installers to show them how to get there. By linking their client’s components to a central hub, security integrators are well positioned to give customers the ability to access all of their audio-visual (A/V) gear and control systems, not only from anywhere in their home, but remotely via the Internet.
Residential System Market Promises Upsell Profits
So, what exactly can be linked in today’s connected home and how do you get to offering these amenities to your customers? Residential systems have come a long way to include a wide sweep of categories that address a consumer’s every want and need.
Advancements and trends emerge on an almost monthly basis. Following is a breakdown of the major categories within the residential system market, the offerings and trends within, examples of how to link the categories together, and guidance on how systems integrators and installers can add these services to their business portfolio.
Structured wiring — If a network is the brain of a connected home, structured wiring is the backbone. Structured wiring gives multiple data distribution options that are readily available in the home. Dedicated wiring for data, telephone, audio and video are fast becoming standard options. The current data and voice standards are Cat-5 and RG6 coaxial cabling. New cable bundle types are now available that incorporate all of the wiring recommended for a structured wiring installation. And here’s a bit of information from the “you probably already know this” department: It’s easier to install structured wiring during the new construction phase rather than retrofitting a customer’s home. Although not impossible, it can be rather difficult.
Security — Many of today’s security systems have expanded to control a wide range of other technology options, such as HVAC and lighting. Many analysts point to day-to-day convenience and intuitive controls as growth areas for the security market. The newest sensors can even have special “pet alleys” to accommodate cats and dogs within a home. Internet-friendly operation can allow users to type an access command on their computer at work, for instance, and allow a FedEx employee to enter the gate and complete a package delivery.
Additionally, many A/V companies are making new products that discreetly hide a surveillance camera and allow the image to be viewed from a TV or any Web-connected PC. Remote capabilities give users the ability to check in on their homes or watch caregivers or childcare providers. With this capability, users can view live, high-resolution video with audio via the Internet. And it’s a system that’s easy to sell, install and train on.
HVAC — These systems can now be set specifically for environmental signals such as temperature changes. Security dealers can now provide customers with a system that not only notifies the central fire station when smoke is detected, but also automatically shuts down air handlers to keep toxic fumes from spreading while lighting an exit path to safety for the family. These systems also allow users to push an “away” button, which lowers the thermostats, turns off the lights and sets lighting timers based upon sunset. The trend toward energy management has caused these systems to go up in demand, especially among environmentally conscious homeowners.
Home entertainment — The name says it all. Many customers want to be entertained in every available nook and cranny of their house. For home theater, the trend is moving away from the large dedicated room to a multipurpose room that allows the family to experience movies, games and TV on large flat-panel displays with surround sound systems. People are not waiting for their old TV to go bad before buying plasmas and LCD TVs. Manufacturers are ratcheting up their capacity to meet demand and prices are falling rapidly. Screen companies like dnp have also come out with new and improved solutions, such as the Supernova screens that work in ambient lighting environments.
The Blu-ray and HD-DVD format war continues, but in the meantime, manufactures like Toshiba and LG have come out with dual players until a clear winner is chosen. Installed in-wall, in-ceiling and outdoors, speakers by manufacturers such as Niles Audio, KEF and Artison make whole-house audio convenient and unobtrusive. Systems are now available that link all A/V equipment to a centralized hub with user interfaces scattered throughout the house that let users choose sources, play lists, volume, distribution zones and more. The Niles IntelliControl® ICS is one option that many installers are using to make this happen today.
As far as video content, media servers are now available that stream video throughout the house on your home network. And devices like the SlingCatcher, Apple TV and NetGear can move content from your computer onto your TV.
Lighting control — This is one of the least-served market segments in both new and retrofit markets. Once people are exposed to the benefits of lighting control, they will buy and expand their systems over the years, giving security dealers opportunities for profit over the long haul. There are issues of licensing since this is high voltage work, but a smart dealer will obtain the correct licensing to create profit from this underserved market segment.
In many ways, the industry is on the brink of a new era of electronically controlled lighting. In the very near future, more builders will realize lighting can be controlled through other devices such as a computer, cell phone or an Internet protocol (IP)-based control system, making it a critical player in the networked home.
Telephone systems — Advanced hybrid systems that are virtually plug-and-play can carry multiple lines, include voice mail for each family member and easily support a home office. Today’s systems are affordable, easy to use and program, and make sense for busy homeowners. Plus, these systems make good use of the structured wiring security dealers often have already installed, increasing the need for the right wires in the right places.
Central vac — Vacuum is a technology? Not in the strictest sense of the word, of course, but this is a profit center dealers should consider intently. Because security dealers are already in a new house installing other systems, why not rough-in the piping for a central vacuum system as well? This is high on the wish list of many homeowners.
A central (or
whole-house) vacuum is a built-in system that consists of a power unit, collection canister and a 30-foot hose. Special pipes installed within interior walls, crawlspaces, attics or basements connect the central part of the system with low-voltage wall inlets. Because the motor is located in the basement or garage, the system is very quiet. Moreover, the 30-foot hose allows homeowners to reach about 700 square feet of floor space. Another major benefit of a central vacuum system is improved indoor air quality.
Irrigation – Even a garden can now be a part of the digital home. Irrigation systems are available that trigger sprinklers to water the lawn only when dryness is detected. Responding to the expanding focus on water conservation and the rapid adoption of municipal irrigation ordinances nationwide, companies like irriGuard have developed systems offering wireless, research-grade rain and freeze sensors tailored specifically for home irrigation systems. The irriGuard design is based on the same meteorological instruments used by the National Weather Service.
Complete control – With the aforementioned categories in mind, imagine setting up a customer’s home with all the components running off of a centralized Web hub or IP-based net- work. IP systems put all of the entertainment onto a common home network. This way, users can have control of all components and content through remotes, touch-screens and other interfaces. With these systems, preprogrammed commands can turn lights on at sunset or provide one button control for all entertainment components.
Users can hit a “movie” command and the shades go down, the lights dim, the TV and DVD receiver turns on, and the movie begins. In the near future, every electronic component will be Ethernet-enabled and Web accessible, so now is the time to embrace this technology.
Manufacturers, Distributors Are Working to Foster Interoperability
Key manufacturers realize the promise of network-based connectivity and are making it simple to install and program routers and components designed for the home market. Microsoft and Intel are very attuned to this market, so learning more makes huge business sense.
Bay Area startups 4HomeMedia and Pie Home are working on software that can help security dealers navigate the many different networking products and standards to manage devices in the home more effectively. Four years ago, Sony, Intel, Nokia, Microsoft and a dozen other companies formed the Digital Living Network Alliance in hopes of creating standards for the variety of home digital devices. And AVAD, a distributor of custom home electronics based in Van Nuys, Calif., has created an “Integration Partners” program that fosters interoperability among vendors, which is key to seamless operation and client satisfaction within the digital home scenario.
