tech plays of the biggest players - techome builder summit · preferred business model for...

Tech Plays of the Biggest Players

Sponsored by:


Diahann YoungInnovation and Digital Platforms Lead

PulteGroup

Ken PetersonVice President Sales & Marketing

Shea Homes

Brad RussellResearch Director, Connected Home

Parks Associates

MODERATOR

Smart Home Adoption, Trends and Demand

Sponsored by:

© PARKS ASSOCIATES

Anything controlled with computer, smartphone, tablet, or smart speaker

10%

2014

Own Any Connected Device

2019

36%

© PARKS ASSOCIATES

from specified list of devices

9%

2014

Own Specific Smart Home Device

2019

28%

• Thermostats• Door locks• Video doorbells• IP cameras• Light bulbs• Lighting control

systems

• Outdoor light fixtures with video camera

• Outlets/switches/dimmers

• Smart plugs/adapters• Sprinkler systems• Garage door openers

• Smoke/CO detectors• Water leak detectors• Water shut off valve• Smart appliances

© PARKS ASSOCIATES

Trending

3.5

2016

Average # Smart HomeDevices per OwningHouseholds

2018

6.0

11%

9%

7%

6%

5%

4%

4%

4%

3%

3%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%

Smart Thermostat

Networked Camera

Smart Light Bulb

Smart Video Doorbell

Smart Plug/Adapter Module

Smart Door Lock

Smart Motorized Garage Door Opener

Smart Smoke Detector

Smart Lighting Control System

Smart In-wall Outlet/Switch or Dimmer

Smart Home Device Adoption – Top 10 (Q2/19)Among All US BB HHs, N = 10,003, ±0.98%

© 2019 Parks Associates% Owning Specified Device

Smart Thermostats Lead Adoption

The Long Tail of Smart Devices

3%

0% 1% 2% 3% 4%

Smart Carbon Monoxide Detector*Outdoor Light Fixture

Smart Sprinkler/Irrigation SystemSmart Ceiling Fan

Smart Humidifier or DehumidifierSmart Water Leak/Humidity Detector

Smart Pet FeederSmart Water Shut-off Valve

Smart Air Purifier/Filtration SystemSmart Vent

Smart Blinds or ShadeSmart Gate

Smart Pet DoorHot Tub/Spa with Wi-Fi or Bluetooth

Smart Pool Pump

Smart Home Device Adoption, Cont’d (Q2/19)Among All US BB HHs, N = 10,003, ±0.98%

% Owning Specified Device © 2019 Parks Associates*With Video Camera

Smart Appliances Owned by 5-7%

7%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Refrigerator Clothes washer Clothes dryer Dishwasher Stove/oven Hot water heater

Smart Appliance Adoption (Q2/19)Among All US BB HHs, N = 10,003, ±0.98%

% o

wni

ng s

peci

fied

smar

t app

lianc

e

© 2019 Parks Associates

9%

4%5%

4%

0%

2%

4%

6%

8%

10%

Newbies(1-2 Devices)

Players(3-4 Devices)

Power users(5-9 Devices)

Super power users(10+ Devices)

Smart Home Device Ownership Segments (Q4/18)Among All US BB HHs Surveyed

60% of Smart Home Device Owners Own 2+ Devices

Owner CharacteristicsNewbies

• 47% ages 25-44; 34% ages 45-64• 58% earn 75K+

• 40% with kids in home• 75% own home

• 19% with 2,500+ sq. ft.• 17% likely to move

• 44% pro-monitoring

Super Power Users• 65% ages 25-44• 79% earn $75K+

• 67% with kids in home• 88% own home

• 39% with 2,500+ sq. ft.• 31% likely to move

• 80% pro-monitored

% U

S B

BH

Hs


© PARKS ASSOCIATES

Legacy + Interactive Pro- + Self-monitoredPro- + Self-installed

26%

2014

Security System Ownership

2018

28%27%

2017

© PARKS ASSOCIATES

With security + independent of security

10%

2014

Home Control SystemOwnership

2018

13%

© PARKS ASSOCIATES

Trending

3%

2016

Smart Speaker or DisplayOwnership

2019

37%

Expectations of Likely Movers

Sponsored by:

© PARKS ASSOCIATES

All residence types with broadband

10%

Likely Movers in the Next 12 months

2019

21%

67%

50%

47%45%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Upgraded bath fixturesSmart smoke/CO detectorWhole home Wi-Fi system

Hardwood flooringBuilt-in shelves

Upgraded lighting fixturesMolding & wood trim

Home security systemGranite countertops

Smart thermostatSmart video doorbell

Smart appliancesHome control system

Designer paint & finishesSmart lighting

Smart door lockSmart water leak/humidity detector

Networked cameraSmart speaker with voice assistant

Important(Rating 5)

Very important(Rating 6-7)

Importance of Home Improvement Features for Next Home (Q4/18)Among 21% of US BB HHs Likely to Move, n = 2,139, ±2.12% (Likely Mover = Rating 5-7)

Likely Movers Value Smart Devices


67%

66%

57%

52%

50%

49%

47%

45%

38%

41%

56%

54%

50%

43%

44%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Smart smoke/CO detector

Whole home Wi-Fi system

Home security systemSmart thermostat

Smart video doorbell

Smart appliances

Home control systemSmart lighting

Smart door lock

Important (Rating 5-7)

Willing to pay (Rating 5-7)

Likely to choose home withupgrades (Rating 5-7)

Technology Upgrade Options: Importance, Willingness to Pay, and Likelihood of Purchase (Q4/18)

Among 21% of US BB HHs Likely to Move, n = 2,139, ±2.12% (Likely Movers = Rating 5-7)

Smart Devices Influence Home Purchase


0% 10% 20% 30% 40% 50% 60%

If I had to choose between two homes that were thesame, but only one included smart products, I would

choose the home with smart home technology

I would consider an older apartment/home that hassmart home technology to be "updated"

Having smart home technology is a major selling pointwhen renting/buying a home

A smart apartment/home would impress my family andfriends

I want a smart home, but am intimidated to install theproducts by myself

Agree (Rating 5)

Strongly agree(Rating 6-7)

Home Preference with Smart Home Devices or Home Improvement Features (Q4/18)Among All US BB HHs, N = 10,050, ±0.98%

Almost Half Prefer Smart Home


0% 20% 40% 60% 80% 100%

If I were to buy a house today, I would want it to bemove-in ready (does not require upgrades, repairs)

A move-in ready house has updated heating /cooling

A move-in ready house has an updated kitchen andbathrooms

A move-in ready house has new appliances

A move-in ready house has the ability to havesmart home technology

A move-in ready house is new construction

A move-in ready house has smart hometechnology installed

Agree (Rating 5)

Strongly agree (Rating 6-7)

Preference of a Move-in Ready House with Specified Features (Q4/18)Among All US BB HHs, N = 10,050, ±0.98%

Move-In Ready Preferred


0% 10% 20% 30% 40% 50% 60%

Amazon AlexaGoogle Home

ADT PulseComcast Xfinity Home

RingApple HomeKit

Honeywell HomeSmartThings

Works with NestVivint Smart Home

NexiaWink

Other security systems

Preferred Platforms to Control Smart Home Devices (Q4/18)Among Likely Movers Who Value the Home Improvement Features, n = 1,932, ±2.23%

(Importance = Rating 5 -7)

% Preferring Specified Platform

Voice Platforms Lead All Types




PulteGroup


Shea Homes


Parks Associates

MODERATOR

Builder Economic Models of Smart Home Offerings

Sponsored by:

You purchase devices on your own

Devices are pre-installed into the home with costs included in the monthly

rent/mortgage

Devices are available as upgrades for an additional cost that can be

included in the monthly rent/mortgage

None of the above

Preferred Business Model for Acquiring Smart Home Devices (Q4/18)Among Likely Movers Who Value the Home Improvement Features, n = 1,932, ±2.23% (Importance = Rating 5-7)

Almost 30% Want Pre-installed


32%

32%

29%

21%

0% 5% 10% 15% 20% 25% 30% 35%

It would be cheaper to buy these products on my own,not included in the price of the home/unit

I would want to pick out my own technology products,not use the ones already in the home

I don't see any benefit to my lifestyle

I have data privacy and security concerns about having smart devices in myhome

I'm not familiar with these devices

I want to wait for the technology bugs to be worked out

If I ended up moving, it would be inconvenient tomove the devices to a new home

I already own some of the products and would bring them with me

Smart home devices would make my life more complicated

I'm confused about how to set up or use smart home technology

Reasons for Unwillingness to Pay for Home Improvement Features (Q4/18)Among Likely Movers Unwilling to Pay for Any Home Improvement Features, n = 407, ±4.86% (Unwillingness to Pay = Rating 1-4)

Barriers to Willingness to Pay


© PARKS ASSOCIATES

• Base Specifications – From One to Many Devices, Brand Position, Differentiation, Convenience, Interoperability, Financing

• Hardware/Service Upgrades for Added Revenue – Low-Voltage Integrators, Security/Automation Model, MSO Model

• Recurring Revenue & Services – Smart Home PaaS Model, Security, Energy Management, Independent Living

• Smart Home Ready – Base Specifications, Whole-Home Wi-Fi, Wi-Fi Certified, Cat5e-7, Network Security, Voice

Single-Family Smart Home Business Models

29% 32

%36%

36%

31%

33%

27% 35

%

28% 32

%

27% 32

%

26% 29

%0%

20%

40%

60%

80%

100%

Young Adrift(14% of BB HHs,n=346, ±5.27%)

Young Go Getters(14% of BB HHs,n=351, ±5.23%)

Picket Fencers(23% of BB HHs, n=586, ±4.05%)

Life Interrupted(15% of BB HHs,n=397, ±4.92%)

The Settled(27% of BB HHs, n=678, ±3.76%)

Register the warranty and provide information on warranty coverageUpdate and improve the productMonitor your product and notify you if there are issuesTeach you how to better use the productProvide remote technical support and recommend maintenance actions/service techniciansRecommend other products that work with your deviceProvide a simple way to purchase consumables

High Likelihood of Sharing Data with OEMs by Smart Home SegmentAmong Smart Home Segments

% R

atin

g "V

ery

Like

ly"

to S

hare

Dat

a(R

atin

g 6-

7 on

a 7

-pt.

Scal

e)Young More Likely to Share Data for Services




PulteGroup


Shea Homes


Parks Associates

MODERATOR

Pros and Cons of Technology Strategy Models

Sponsored by:

© PARKS ASSOCIATES

• Security/Home Automation System Model• Security dealers, low-voltage, DIY or recurring fees

• Point Solutions with Voice Control• Low voltage or retailers, no recurring fees

• Proprietary Platform Model• Develop branded control platform, integrate other services

• Smart Home-Ready Model• Cat5e, Cat6, Cat7, whole-home Wi-Fi

Technology Strategy Models

17%36%

37%

66%

0% 20% 40% 60% 80%

Voice, using voice control that is built into theproduct

Voice, using voice-assistant on yoursmartphone

Physically touch controls on the device

An app that controls different types of smartproducts

Voice, using a smart speaker with voiceassistant

An app that controls a single type of product

Q4/2018(n=1,155, ±2.88%)

Q4/2017(n=2,615, ±1.92%)

Q2/2017(n=876, ±3.31%)

Smart Home Device Control Methods (2017 - 2018)Among US BB HHs Owning At Least One Smart Home Device from Parks Associates' List

% Using Specified Method to Control Devices

Voice control doubles for smart home


37%

0% 10% 20% 30% 40%

Problems at initial set-up and configuration

Difficulty getting devices to connect to eachother using Wi-Fi

Difficulty getting other devices to connect to theInternet using Wi-Fi

The Wi-Fi network stops working for somereason almost weekly

Wi-Fi coverage problems

Wi-Fi network seems slow

Wi-Fi Network Technical ProblemsAmong the 82% of US Respondents Using Wi-Fi at Home

% Experiencing Specified Technical Problems

Pursuit of a Premium Wi-Fi Experience

22%

Own a Wi-Fi extender

11%Own a whole-home

mesh networking product© 2019 Parks Associates



PulteGroup


Shea Homes


Parks Associates

MODERATOR

Value Chain of Smart Home Technology Implementation

Sponsored by:

The Long Tail of OptionsSmart Home Products Systems & Services



PulteGroup


Shea Homes


Parks Associates

MODERATOR

Audience Q & A

Sponsored by:



PulteGroup


Shea Homes


Parks Associates

MODERATOR

Thank You!

Brad RussellResearch Director, Connected HomeParks Associates

[email protected]@bradrusselltech

http://parksassociates.com

tech plays of the biggest players - techome builder summit · preferred business model for...

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