CABA’s CONNECTED CONSUMER ROADMAP Smart Home Summit October 20-21, 2015 • Palo Alto, CA CABA’s CONNECTED CONSUMER ROADMAP - Driven by The Internet of Things Greg Walker Research Director Continental Automated Buildings Association (CABA) www.CABA.org ©2015 Continental Automated Buildings Association (CABA). Notice: No material in this publication may be reproduced, stored in a retrieval system, or transmitted by any means, in whole or in part, without the express written permission of CABA.

CABA Board of Directors and Vision Connected Consumer Roadmap 2015 CABA Board of Directors CABA Vision Statement “CABA accelerates growth in the connected home and intelligent buildings sectors.” ©2015 Continental Automated Buildings Association. All rights reserved. 2

Internet of Things Overview Overview of IoT Ecosystem CONNECTED CONSUMER ROADMAP 2015 Internet of Things Overview IoT is a conceptual framework. It’s about enabling connectivity and embedded intelligence in devices. Some of these devices are connected today, but MANY are not… Not strictly machine-to-machine (M2M) – also machine-to-people, people-to-machine, machine-to-objects, people-to-objects. Creates the ability to collect data from a broad range of devices. Data can be accessed via the cloud and analyzed using “big data” techniques. ©2015 Continental Automated Buildings Association. All rights reserved. 3

Consumer at Center of IoT Ecosystem The Place of the Connected Consumer Within IoT CONNECTED CONSUMER ROADMAP 2015 Consumer at Center of IoT Ecosystem ©2015 Continental Automated Buildings Association. All rights reserved. 4

Connectivity Choices for IoT Connectivity Ecosystem in Consumer IoT CONNECTED CONSUMER ROADMAP 2015 Connectivity Choices for IoT ©2015 Continental Automated Buildings Association. All rights reserved. 5

Interoperability and Inter-application Functionality – Take-Aways Connected Consumer Roadmap 2015 Interoperability and Inter-application Functionality – Take-Aways Some of the key points highlighted by the ecosystem interviews and consumer survey were: Complexity is a barrier to adoption Multiple apps are an issue Inter-application operability not essential. Concerns when extending an existing system seemed low “A lack of interoperability and inter-application functionality will significant limit the development of the connected consumer roadmap”. ©2015 Continental Automated Buildings Association. All rights reserved. 6

Privacy – Industry Ecosystem Take-Aways Connected Consumer Roadmap 2015 Privacy – Industry Ecosystem Take-Aways Some of the key points highlighted by the ecosystem interviews and consumer survey were: Ecosystem is very aware of the issue Consumer needs data sharing trade offs Data sharing already exists on a large scale Importance of data handling will increase “Consumer concerns over privacy will slow down the development of the connected consumer roadmap”. ©2015 Continental Automated Buildings Association. All rights reserved. 7

Security as a Barrier to Purchasing Smart Home Products CONNECTED CONSUMER ROADMAP 2015 Security as a Barrier to Purchasing Smart Home Products Security ranked fifth when the results were combined. This was behind cost, hassle factor, desire and privacy, but ahead of installation. Overall it was there as a consideration, but not one of the leading ones. ©2015 Continental Automated Buildings Association. All rights reserved. 8

User Interface and Remote Access – Take-Aways Connected Consumer Roadmap 2015 User Interface and Remote Access – Take-Aways Some of the key points highlighted by the ecosystem interviews and consumer survey were: App fragmentation detrimental to uptake Smartphone will be the primary interface In home interfaces will also be important UI complexity can be a barrier to uptake “Fragmentation of UI across device types helps, but within device types hinders, the development of the connected consumer roadmap”. “The need for remote access will result in different devices types and different UIs depending on location and application”. ©2015 Continental Automated Buildings Association. All rights reserved. 9

Fire Detection and Alarm (FDA) Systems Market size Canada 10% USA – 90% 10

FDA Market shares of suppliers in North America by product sales, 2013 11

Cybersecurity and the Connected Home CONNECTED CONSUMER ROADMAP 2015 Some of the topics that will be covered include: best practices, insurance claims, cybersecurity trends, public concern and awareness of cybersecurity, how cybersecurity impacts the adoption of connected home devices and services, business case analysis for cybersecurity and specific recommendations to the industry.   Greg Walker, CABA Research Director, walker@caba.org, www.CABA.org ©2015 Continental Automated Buildings Association. All rights reserved. 12