Current and future trends in automation

The rise in adoption of automation technologies presents significant opportunities for the electrical industry. However, with varying levels of customer understanding, it’s challenging to determine how to capture a piece of this rapidly growing market.

The home automation market is set to reach almost $1 billion by 2017, according to research conducted by Telsyte. Over a million Australian households are considering a home automation system and 115,000 are looking to adopt one in the next two years. These estimates are based on the growth of integrated systems, DIY devices, security systems and services in new and existing homes, reflecting a fragmented market, varied definitions of home automation and the ambiguous nature of consumer demand.

Automation means different things to different people. To the electrical industry and some end users, automation is a completely tailored suite of products and systems that drive the main electronic functions of the home, from entry and lighting control, to home cinema systems, blinds and energy management. To entry-level consumers, automation may simply mean having an automatic garage door or sensor lighting, ie, home automation in its most basic form. To Gen Y, it may mean the ability to monitor energy use and control lights using an app.

What lies ahead?

Until now, home automation has been event-driven, where you press a button to trigger an outcome. Many existing home automation configurations comprise a collection of stand-alone components, each operating independently. Some components require professional installation, while others are DIY. For example, lighting may be controlled by a wired system supported by a mobile app, and DIY security cameras may be managed via a web-based platform.

The rise of the Internet of Things will see home automation systems seamlessly connect all components and control them from a central system that can be adapted to suit the demands and design of the home. These smart systems will learn residents’ living patterns and automate responses accordingly. Telsyte predicts that this is merely two years away, with a significant opportunity to unify the large installed base of disparately connected devices under a master control system.

The world of wireless

The growth of internet connectivity and Wi-Fi-enabled devices will drive the uptake of home automation solutions. In 2014, 92% of Australians used the internet and mobile data downloads grew by 97%. With this level of connectivity, there is an opportunity for automation in almost every aspect of daily life. Software giants have created home automation platforms, and apps such as IF by IFTTT (If This Then That). IF allows users to automate everyday activities by setting up simple ‘recipes’ influenced by web-based triggers and has about 20 million interactions a day. For example, users can create a ‘recipe’ that will automatically save pictures posted on Instagram to Dropbox. In 2012, IF entered the IoT by linking to devices, allowing users to control electrical functions in the home via an internet connection using ‘recipes’. For example, users can set up a recipe that automatically switches lights on when the sun goes down.

Leveraging opportunities

With a number of industries vying for a slice of the home automation market share, it is vital that businesses in the electrical industry work together to secure its position in the rapidly growing market.

The electrical industry will play a significant role in the uptake of different technologies as it supplies the infrastructure that supports automation solutions. When Wi-Fi was introduced, telcos owned the market and the electrical industry expanded as sales for data networks went through the roof. The NBN and new related technologies will continue to underpin infrastructure development for the foreseeable future.

The electrical industry’s key to succeeding in this market - for contractors, manufacturers and distributors - is providing the end users with safe, affordable, intuitive and easy-to-use home automation solutions.

As a manufacturer, HPM Legrand is committed to being at the forefront of technology to deliver innovative and easy-to-install home automation solutions. Legrand is part of the ZigBee alliance and its range of wireless products, such as movement sensors and Arteor switches, work with the ZigBee protocol to provide wireless alternatives where it’s difficult to run-in new cabling. The ZigBee alliance is the only open global wireless standard to provide the foundation for the Internet of Things by enabling simple and smart objects to work together, improving comfort and efficiency in everyday life.

For contractors, the conversation with customers is shifting. End users have an insatiable appetite for connectivity and expect contractors to advise them on affordable and safe electrical solutions that will keep them connected - in and out of the home. This is an opportunity for contractors to position themselves as trusted advisors, assisting customers to rethink electrical design and adding value by helping to create futureproofed homes. This can result in greater opportunities to upsell.

The Legrand and HPM Rethink Electrical program is designed to meet evolving customer demands by assisting end users with planning and provides contractors with resources to support these new conversations. Contractors and end users can access www.rethinkelectrical.com.au and various other tools with their clients and use it to keep abreast of emerging trends.

By engaging customers in conversations about their home of the future, contractors can help to shape consumer understanding of home automation and leverage the opportunities this rapidly growing category offers.

Image credit: ©lassedesignen/Dollar Photo Club