Broadband and Wireless Networking Adoption Move Home Automation into Mainstream Focus, Says ABI

Home automation and connectivity do not only involve letting in a delivery person while away or turning on lights when on vacation. They are about managing the home ecosystem.

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Broadband and Wireless Networking Adoption Move Home Automation into Mainstream Focus, Says ABI

OYSTER BAY, N.Y. - - December 2, 2003 - - Home automation and connectivity do not only involve letting in a delivery person while away or turning on lights when on vacation. They are about managing the home ecosystem. With networking technologies and standards connecting the various areas of the home, the opportunity to extend these initiatives - - and make the home "smarter" - - is beginning to become a reality, finds ABI.

"What is happening to the home now happened to the enterprise in the 1990s," explains Erik Michielsen, ABI senior analyst. "Supply Chain Management, Enterprise Resource Planning, and Customer Relationship Management were large initiatives that cut costs, enabled efficiencies, and drove revenue for service providers and cut customer costs. The home is not that different."

Within the home enterprise, residential wireless networking, high -speed Internet services, and smarter connected intelligent devices are reshaping the home by connecting security, entertainment, HVAC, lighting, and appliances in new ways. These trends are pushing traditional home automation markets closer to those traditionally occupied by the PC and consumer electronics industries. In short, the trends are creating new guidelines for the digital home and the applications available to the consumer. From 2003 to 2008, ABI Research estimates the home automation controls market will grow from $1.5 billion to over $3.8 billion, pushed in large part by mainstream consumer adoption.

As networking and connectivity continues to drive development of networked home automation and digital devices, more stakeholders have emerged. Though the home automation and controls industry has been fragmented for years, a number of players in the market have changed product strategies and are now offering integrated home solutions or complementary networked solutions suites. While many traditional automation companies continue to innovate, many new entrants from established adjacent industries - - including Samsung, Honeywell, Invensys, Motorola, Texas Instruments, Mitsubishi, and Philips - - are looking to capitalize on new market opportunities in home automation.

Networking technologies such as Zigbee, Bluetooth, Wi -Fi, and Ultra Wide band are gaining momentum through consumer adoption, focused trials, or standards certification. Each will affect the home automation landscape by altering the way nodes connect and share information, and thus altering consumer lifestyles and availability of choice. These technologies present numerous opportunities to network home control systems, such as lighting, security, HVAC, entertainment, and appliances.

ABI's report, "The US Digital Home Enterprise 2003: Connected Home Automation,
Resource Management and Distribution Across the New Home Landscape," analyzes the current status of the US home automation industry, evaluates the impact of broadband networking, standards formation, and convergence on the marketplace, and projects market trends over the next several years. Related areas such as residential gateways, networked home service providers, home control systems, and structured wiring installations are also included. Key market forces including housing, broadband, Internet, consumer electronic, networking, entertainment, and energy sectors are covered, and the study shows how the confluence of recent events, technology innovations, economic developments, and market entrants are redefining what home automation means and how it is becoming an integral component of many companies' short and long term strategic planning and product development initiatives.

About ABI
ABI is a N.Y. -based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, broadband and energy industries. Details can be found on the web at abiresearch.com or by calling 516 -624 -3113.

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