Home control networking systems market becoming IP-aware

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11 April 2001 News

The home control networking systems market is undergoing a significant transition from closed-loop solutions to open, IP-aware solutions. The result is that the US home automation and controls equipment market is expected to grow from $1,1 bn in 1999 to $3 bn in 2005.

"This market has historically been hurt by the lack of standards, expensive solutions and industry fragmentation," stated Navin Sabharwal, Director of Residential & Networking Technologies, Allied Business Intelligence (ABI). "However, the outlook has improved considerably as industry participation extends beyond traditional home control system vendors to appliance manufacturers, residential gateway vendors and service providers."

ABI's report 'Home automation systems and IP-based control' cited three factors contributing to why the industry may now be ready to begin realising its true potential. First, the Internet is the leading catalyst to a change in both system designs and business models. IP-aware home control systems not only provide greater value to customers, but also represent a means for service providers and appliance vendors to create new revenue streams. Utility service providers are particularly interested in the possibility of providing an energy-centric bundle of services, while appliance vendors are looking to market intelligent appliances that have additional functionality and can be managed remotely.

Second, the immense interest in high-speed home networks is spilling over into control-oriented applications and services. Key players are looking to enable a more complete vision of the intelligent home that extends beyond high-speed data and entertainment networks.

Lastly, there has been a renewed effort to improve technologies for home control applications. New control networking protocols such as the Microsoft-led simple control protocol (SCP) effort and emWare's EMIT architecture promise more reliable, lower cost solutions. Additionally, LonWorks technology is meriting a serious second look.

However, ABI warns that there are obstacles ahead. "The impact of these new and improved technologies will not materially be felt until 2002," said Sabharwal. "Moreover, the industry must still look to converge on a single standard in the long-run, so as to enable true interoperability."

www.alliedworld.com

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Home control networking systems market becoming IP-aware

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