Infonetics Research: Operators Look to Home Automation to Increase Revenue and Customer Loyalty

CAMPBELL, Calif. -- (BUSINESS WIRE) -- Technology market research firm Infonetics Research (www.twitter.com/infonetics) recently surveyed broadband operators who are deploying home automation, or home control, services, about the types of services they plan to offer now and in the future, delivery methods, technologies and protocols, home monitoring equipment suppliers they buy from now and are evaluating for future purchases, and who they perceive of as the top suppliers in the field.

The results are published in Infonetics’ Home Automation Service Strategies: Global Service Provider Survey, an in-depth look into the latest trends in home automation (services offered via a broadband or mobile connection to the home).

ANALYST NOTE

“While the home automation market is still young, major operators, including Verizon, AT&T, Comcast, Time Warner Cable, and China Telecom, have already made public announcements regarding home automation services and some have begun initial rollouts, and many more will jump into the game this year,” expects Jeff Heynen, directing analyst for broadband access and video at Infonetics Research. “The potential customer loyalty and incremental revenue attached to home automation services, particularly home security and home energy management, are too enticing for any operator to pass up. Many broadband operators are starting out small, offering remote control of lighting, doors, thermostats, audio, video, and security systems. The goal will then be to layer on additional revenue-generating services, such as a full-fledged home security system.”

HOME AUTOMATION SURVEY HIGHLIGHTS

• The top two reasons broadband providers are deploying home automation services are to increase average revenue per user (ARPU) and reduce subscriber churn
• Home security service is the most popular home control service offered currently and will remain a top home automation service
• Monitoring of appliances and monitoring of whole home energy usage will see the biggest growth among home automation services between now and 2013
• While the bulk of Infonetics’ survey respondents are fixed-line operators and service providers, there is strong evidence to suggest that mobile operators are also looking to muscle in on the home automation opportunity
• WiFi is the most popular wireless technology used by operators to deliver home automation services, but Zigbee and Z-Wave are growing fastest, seen by many as better options because they are low-power, mesh networking technologies
  • Zigbee chips are being installed in most smart energy meters in North America and most companies developing smart home adapters are using it
• Control4 and Honeywell are viewed by respondent operators as the top home automation equipment and software suppliers

HOME AUTOMATION SURVEY SYNOPSIS

For its 21-page Home Automation Service Strategies survey, Infonetics analysts interviewed incumbent operators that offer home automation services or will by the end of 2012. The respondents are from North America, Asia Pacific, and EMEA (Europe, the Middle East, Africa). Operators were asked about home automation services, technologies, equipment provisioning, out-of-market and over-the-top delivery, and home automation vendors. Home automation equipment and software suppliers named by operators in response to various survey questions include ADT Pulse, Asoka, Clear2there, Control4, Elk, FrontPoint, GE, Green Wave, Hawking, Home Automation, Inc., Honeywell, Insteon, MiCasa Verde, Motorola, Nystrom, Sensaphone, Sierra Wireless, Silver Spring Networks, SMC, and Xanboo.

RELATED RESEARCH

• Latest Infonetics Broadband Access research newsletter: http://bit.ly/we9TMy
• Broadband CPE and home networking vendors make push towards premium services; ZTE surges
• Fixed broadband access equipment market set to peak in 2011
• Cable broadband equipment market up 14% from year-ago quarter; Cisco gains
• Telecom capex up 6% to $311B in 2011, revenue up 8% to $1.86T, driven by mobile broadband
• Operators looking at next gen FTTH technologies will wait for prices to drop
• GPON equipment investment in Europe, India and Middle East far outpaces subscribers

UPCOMING MARKET FORECASTS AND SURVEYS

Download Infonetics report highlights, prospectuses, tables of contents, etc. from the BROADBAND ACCESS tab on the Infonetics service portal (http://www.infonetics.com/login).

• Log in to download Infonetics’ 2012 Research Publication Calendar: http://bit.ly/zwjcRs
• 1G/10G/40G/100G Networking Ports
• Broadband CPE and Subscribers: PON, FTTH, Cable, and DSL
• CMTS and Edge QAM Hardware and Subscribers
• Home Networking Devices
• PON, FTTH, and DSL Aggregation Equipment and Subscribers
• Residential Gateway Deployment Strategies: Global Service Provider Survey

SALES

• Larry Howard, VP, Western NA, Asia, CALA: larry@infonetics.com, +1-408-583-3335
• Scott Coyne, Eastern NA, Texas, Midwest: scott@infonetics.com, +1-408-583-3395
• George Stojsavljevic, EMEA: george@infonetics.com, +44-755-488-1623
• Japan, Taiwan, Korea: http://www.infonetics.com/contact.asp

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50152741&lang=en