ROMAN D.

SMART HOUSE SYSTEMS

Thesis
CENTRIA UNIVERSITY OF APPLIED SCIENCES
Industrial Management
September 2019
Centria University Date Author
of Applied Sciences September 2019 Roman Demianchuk

Degree programme
Industrial Management
Name of thesis
Smart House Systems
Instructor Pages
Hannu Puomio 22
Supervisor
Hannu Puomio

I have been thinking for long time about topic for my thesis project, and decided that “Smart Houses”
would be a perfect one. This technology is new and rapidly developing, in addition it is very useful
system for humans. It provides new level of security and safety, performs a number of everyday tasks
and makes life easier. In my thesis, I outlined the most important, useful and interesting features of
Smart-Home system.

Key words
Business, Business Start-up, Smart house, Technologies
ABSTRACT
CONTENTS

1 INTRODUCTION ........................................................................................................................... 1

2 SMART HOUSES ........................................................................................................................... 2

2.1 History and definition................................................................................................................ 2
2.2 Concept of work......................................................................................................................... 3

3 SMART HOUSES STRUCTURE .................................................................................................. 4

3.1 Smart house capabilites ............................................................................................................. 4
3.2 Smart house technologies .......................................................................................................... 5
3.3 Economical aspects .................................................................................................................... 7
3.4 Integrated Management System ............................................................................................... 7
3.5 Smart house remote control ...................................................................................................... 8

4 CLOSED SYSTEM RESEARCH................................................................................................. 10

4.1 Two types of systems ............................................................................................................... 10
4.2 ”Domintel – smart living experience” ..................................................................................... 11
4.3 Functions.................................................................................................................................. 11
4.4 Comfort .................................................................................................................................... 14

5 SMART MODULES (CONSOLES) ............................................................................................. 16

5.1 Yandex control device ............................................................................................................. 16
5.2 Examples of interesting modes ................................................................................................ 17

6 MARKET ...................................................................................................................................... 18
6.1 Pricing ...................................................................................................................................... 18
6.2 Smart Homes in Finland ......................................................................................................... 19

7 CONCLUSION AND DECISION ................................................................................................ 21

REFERENCES................................................................................................................................. 19
APPENDICES

TABLES
TABLE 1. Control Device .................................................................................................................. 15
TABLE 2. Price Table........................................................................................................................ 17
 1

1 INTRODUCTION

In my thesis project, I will show you and explain what is a new smart house system, how it
works, positive and negative sides of usage, why it is becoming more popular nowadays. In
addition, I am going to tell about few economical aspects.

Any building - an administrative, industrial or residential building consists of several subsys-

tems responsible for the performance of certain functions. All these functions are installing with
customer’s needs. The costs of maintaining staff, repairs and maintenance of these subsystems
are also growing rapidly. These problems arose during the operation of large administrative and
industrial complexes.

A modern building of this type is a miniature city. In fact, it operates all the services that were
previously indispensable conditions of urban economy. In such buildings, usually an adminis-
trative service or administrator use this system almost around the clock. Automation, ventila-
tion, climate control, lighting, fire alarms, control of entry / exit, however the management and
maintenance of all these systems requires the presence of administrative personnel. His respon-
sibility is to monitor the operation of this subsystem. There are even situations where the actions
of qualified personnel can be ineffective, such as global problems - fire, earthquake and other
natural disasters. The reaction and adjustment of the actions of people in a critical situation may
be insufficient.

Traditional systems of providing various aspects of life in the past were designed as automotive.
Such systems were created separately for each function. The systems were created and installed
only with possibilities and intelligence that were necessary at the current time of construction
the building. Further expansion and modernization of these systems were due to various factors.
These factors are costs of operating such systems separately, costs of training personnel, also
costs of training personnel are as high as operators should be familiar with the operation of each
autonomous system.
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2 SMART HOUSES

2.1 History and definition

The Intellectual Building Institute in Washington formulated the concept of “smart home” in
the 1970s: a building that provides a productive and efficient use of the workspace. The princi-
ple of the “Building Intelligent Building Management System” presupposes a completely new
approach to organizing the life support of a building. With this organization due to the complex
of software and hardware, the operating efficiency and reliability of management of all systems
and executive devices of the building are significantly increased.

A “smart home” should be understood as a system that must be able to recognize specific situ-
ations occurring in a building and react accordingly to them: one of the systems can control the
behavior of others according to previously developed algorithms. The main feature of an intel-
ligent building is the combination of individual subsystems into a single managed complex. An
important feature and property of “Smart Home” that distinguishes it from other ways of or-
ganizing living space is that it is the most progressive concept of human interaction with living
space, when a person sets the desired environment with one team, and automation sets and in
accordance with external and internal conditions and monitors the operation modes of all engi-
neering systems and electrical appliances.

In this case, it eliminates the need to use several remotes when watching TV, many of switches,
which control lighting, different units when controlling ventilation and heating systems, video
surveillance and alarm systems, gates and more. In a house equipped with the Smart Home
system, it is enough to select one of the scenarios with one click on the wall key (or remote
control, touch panel, etc.). The house itself will adjust the operation of all systems in accordance
with one’s wishes, time of day, owner’s position in the house, the weather, ambient light, etc.,
to ensure a comfortable state inside the house.

Internet website (BBC research April 11, 2018).

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2.2 Concept of work

“Smart House” is another name of the term “intelligent building”. In this approach, intelligence
means the ability to recognize certain situations and respond to them (naturally, the degree of
this skill can be different, including very high). However, in accordance with a literal translation
from English, “intelligent building” can be interpreted as “reasonably constructed”. This means
that the building should be designed so that all services could be integrated with each other with
minimal costs (in terms of finances, time and labor), and their maintenance would be organized
in an optimal way.

The concept of an intelligent building contains the following provisions:

1. Creating an integrated building management system - a system with the ability to ensure
the integrated operation of all engineering systems of a building: lighting, heating, ven-
tilation, air conditioning, water supply, access control and many others.
2. Elimination of all building attendants and transfer of control and decision-making func-
tions to subsystems of the integrated building management system. These “subsystems”
are precisely the “intelligence” of the building - the way it will respond to changes in
the parameters of the system’s sensors and other events such as emergencies.
3. Implementation of the mechanism of an immediate shutdown and transmission, if nec-
essary, to control a person of any subsystem of an intelligent building. Along with this,
a person should be provided with quick access to the management and display of all
subsystems and parts of the “Smart House”.
4. Ensuring the correct operation of individual subsystems in the event of a failure of the
common control system or other parts of the system.
5. Minimization of the cost of maintenance and modernization of building systems, which
should be ensured by the application of common standards in the construction of sub-
systems, automatic configuration and detection of new devices and modules when they
are added to the system.
6. The presence in the building of a laid communication environment for connecting de-
vices and system modules to it. Along with this, the possibility of using various types
of physical channels as a communication medium in the control system: low-current
lines, power lines, and a radio channel.
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3 SMART HOUSES STRUCTURE

3.1 Smart house capabilites

Intelligent building has many advantages. The management system allows owners to create
arbitrarily complex and intelligent operating procedures, as all executive systems can work in
concert and jointly. This implies the implementation of many resource-saving procedures:
 Access control and security
 Accounting and control of almost all system parameters and prompt response to their
critical change.
 Remote control and building management, as all information and control communica-
tion channels in such a system are digital.

With one touch, owner can turn an empty house into a home, which is waiting for him to come
back: the lighting will be turned on, a comfortable microclimate will be installed, curtains will
drop, and the bathtub will fill. Customer can control the "home theater", as well as audio and
video equipment using touch panels among the house. In addition, it is possible to create light
scenarios from an unlimited number of light sources with different brightness.

Using special dimmers, operator cannot only change the brightness by which the lamp lights
up when turned on, but also the time during which this brightness is reached. The function of
constant monitoring of illumination, intended mainly for office premises, makes it possible to
maintain a given illumination of the work surface whether the sun is shining or the sky is cov-
ered with clouds. The automatic inclusion of an external warning, depending on the time of day
and the presence of people, will not only provide additional comfort, but also scare away unin-
vited guests. The system constantly measures the temperature individually in each room and
maintains it at a given level, directly controlling the radiator valves or air conditioner dampers,
and if necessary, automatically turns the ventilation on or off.
Each day helps to save money due to various modes of the system: comfortable mode, night
mode, the mode of "no one in the house." In addition, operator can schedule different modes. It
is enough only once to set the temperature on the touch panel display in the room for each of
the modes. The heating / air conditioning system will turn off automatically to save energy if
 5

the windows of the room are open for ventilation (a signal will send a frame contact). In sum-
mer, their lamellas automatically rotate at a certain angle and prevent excessive sunlight from
entering the room without decreasing the luminous flux. Thus, they interfere with the heating
of the room and help save energy consumed by the air conditioner.

A smart house will report to all the events that took place in it during the absence of the owners:
who came and when, how much time was inside the house, outside cameras would inform about
outside safety. Their faces and actions are recorded in SH memory. Uninvited guests are waiting
for unpleasant surprises in the form of blinding light and a sound siren. In addition, owners and
police will be informed by telephone if someone entry into the house illegally.

By installing a visualization program on your home computer and using a modem, owner can
turn off the light left by someone from a laptop computer and let guests suddenly popping into
the house. It provides reliable communication even when there is no computer at hand: down-
land and install special app inside your phone. Enter the home control zone through tone dialing.
Each device in the system has its own serial number. By calling it, various commands could be
used: turn on the heating, warm up the sauna, fill the bath.

Fedorov. 1999. “How many floors does an intelligent building have?” - “Business: Organization, Strat-
egy, Systems”, No. 10.

3.2 Smart house technologies

Smart Home projects have many different functions covering all areas of everyday life. Any
“smart” house is characterized by the presence of a building automation system. This is a set of
software for equipment management - monitoring, optimization and administration. The goal
of building automation is the efficient and safe maintenance of all appliances in a residential
building or other structure. Management is carried out using a system that is triggered when the
conditions specified by the program occur.
Building automation is made possible thanks to modern devices, stations and control modules
that can control (block, optimize) the operation of all equipment. The automation process allows
a person to forget about the complexities of managing any communication systems. The pecu-
liarity of building automation is the ability to simultaneously and accurately account for all the
 6

most important factors: control of water, electricity, temperature, uninterruptible power sup-
plies, etc. Installation of utility networks, ensuring the uninterrupted operation of systems in
standalone mode is also going to save money.

The main task of specialists who develop automated solutions for residential facilities is the
creation of engineering networks and their management. Engineering communications are be-
ing introduced in stages: first, a heating system, an air conditioning and ventilation system are
created, then “smart” light and multimedia technologies. The use of these networks saves from
10 to 40% of electricity. Engineering communications are controlled by a computer using spe-
cial programs - controllers. Coordination of work is done with touch panels, via the Internet or
a cell phone, as well as using one-, two- or multi-button switches. The latter are able to provide
control of the entire building system.

In addition to the centralized management of all communications of the building, it is proposed

to establish a monitoring system that will allow controlling engineering networks thanks to
special devices: light, motion, temperature sensors. Information on the state of communications
allows timely prevention and replacement of faulty parts. The complex for the design of country
houses equipped with "smart functions" includes:
 development of a project for a lighting control system
 the creation of the concept of multimedia systems (home theaters, music centers)
 installation of climate control
 management of ventilation, air conditioning, heating and water supply
 installation of a power electric system
 integration of the sewage system
 installation of security systems, scheduling
 Connection of any systems at the request of the customer (landscape irrigation system,
anti-icing system for roofs, steps, paths and drains, etc.).

Individual designs of cottages, houses or apartments and the installation of security systems
that perfect house needs are- security and fire alarms, fire extinguishing, access control, calling
the security service, etc. The design of “smart” housing is accompanied by warranty and post-
warranty maintenance of the installed system.
 7

3.3 Economical aspects

In all countries with developed market economies, both incomes and expenses of taxpayers are
transparent. A clear control of income and expenses allows institutions such as mortgage lend-
ing (issuing loans for the construction and purchase of housing) to work effectively. This leads
to the fact about the purchasing of smart house with credit would be perfect for the working
population. Therefore, in many countries there is already the practice of a compulsory home
insurance. Naturally, insurance companies are interested in the quality and reliability of the
insured housing. However, since the occurrence of insured events unfortunately cannot be
avoided, the insurance companies recover money from the organizations and people, that were
guilty in insurance case, and often it is not ordinary people, but, for example, construction com-
panies.

The “Smart House” is able to provide the experts with the all the information on hard disk by
the content of which conclusions will be made. Therefore, the development and implementation
of Smart Houses in countries with developed market economies is now proceeding rapidly. In
addition, the future owners of such buildings themselves are interested in their intelligence,
because it undoubtedly brings significant savings to its owner through accurate accounting and
control of all building systems, as well as the rational use of resources such as electricity, water,
heat. In addition, a smart home allows owner to save on payments made for utilities. Heating,
electricity, water and operating costs in such houses are reduced by 30%. The intelligent system
of the Smart House is configured in such a way that thanks to the built-in temperature, presence
and light sensors, it independently monitors the operation of air conditioners, convectors, radi-
ators, and lighting and is able to turn off these devices if they are idling.

3.4 Integrated Management System

Such systems are necessary due to the need to maintain information technology environments,
when multi-platform support at all levels - different computers (servers, workstations and per-
sonal computers), different operating systems, such as Linux, Mac OS, Windows, and network
 8

equipment from different manufacturers and different levels of intelligence. Based on the ser-
vices provided by the most companies, all aspects of building infrastructure management are
combined into a single system that performs diverse functions, which has dozens of functions.
There are some of them: fire alarm, environmental control, building access control, elevator
control, television tracking, time recording, lighting control, control of the use of electrical en-
ergy, heating, ventilation and maintaining a microclimate. In addition to performing the target
functions, it is also set with the functions of managing the information infrastructure. Infor-
mation access control and security management, workload management, performance monitor-
ing, event management, automated data storage management, problem management, data
transport management, report distribution management, Web server and network management.

M.E. Soper. Practical tips and solutions for creating a "smart home".

3.5 Smart house remote control

A person can control an intelligent house or building using some controls located in the building
or its surroundings, but included in the same communication environment as all other compo-
nents of the system. However, there are many cases where it is necessary or desirable to re-
motely control the subsystems of an intelligent home. These is the list of main abilities:
 The ability to control the state of his home in a long absence and, if necessary, manage
some systems
 in case of unforeseen situations (fire, flood, etc.), the house should be able to notify its
owner and the relevant city services
 in case of malfunctions in some modules and subsystems, diagnostics and some repair
or adjustment procedures can be carried out by specialists from service centers remotely
without direct presence, which saves considerable money and contributes to the variety
of available technical means

The concept of an intelligent home provides an opportunity to create a remote control sub-
system as part of an integrated management system. This subsystem allows customer to receive
information about the events and status of some parameters and remotely send control com-
mands to the entire system or its individual components. Regarding the depth of the implemen-
tation of such an opportunity in an intelligent house, the following forms can be distinguished:
 9

 Autonomous self-regulating and controllable object, which includes all kinds of auto-
mation, but has no communication with other parts of smart-house. This is the most
primitive model of intelligence, which is advertised in the media, such as “press 1 button
and the smart house will do everything for you”.
 When connecting an intelligent home to a network with individual objects into a single
system, which will allow monitoring of the life support systems, energy saving of re-
sources, security, etc. The solution of any issues related to the mentioned systems, as
well as the delivery of various services over the network will become much simpler and
more efficient.
 Another form of intellectual home: information is exchanged both inside the house and
outside it using standard digital protocols. All system components are integrated into a
single communication space. This is the most intelligent form of smart house.
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4 CLOSED SYSTEM RESEARCH

4.1 Two types of systems

All smart-house automation systems divided into open and closed ones. There are dozens of
different automation systems, and I will provide examples of some of them. Open systems are:
BACnet, MODbus and LonWorks and others.

The customer, who is looking for an open system, receives a wide selection of equipment from
various manufacturers, which can be correctly integrated into the common engineering complex
(system) without any difficulties. In addition, the market for system integrator companies of
open systems is already quite extensive, which gives the customer the opportunity to choose a
manufacturer with different design, help with installation and commissioning stages of an au-
tomation system.

At the same time, closed systems are often cheaper and easier to install and set up, and therefore,
their use is justified in cases where it is enough for the customer to solve a local problem without
the need for further modernization and docking with automation from other manufacturers.
Moreover closed systems often have their own OS and app for both Android and iOS, while
open systems sometimes support only one system. For example, a person wants to have light
control and water control systems, without any future modernizations. For this case, it is much
better to purchase a closed system, as it is going to be cheaper and easier to control and install.
Such systems include, for example: Domintel, Clipsall or AMX and others.

The choice of a system is determined by the tasks and objectives set by the customer. In addi-
tion, usual electrical equipment has recently become more and more “smart”, and often, many
tasks of building automation can be solved without resorting to complex intelligent systems.
For example, a modern remote controller (for example, Pronto Philips, controller from Sam-
sung, etc.) allows owner to control the audio-video complex, climate technology and lighting,
including programming of light scenes. In markets, such as “Prisma, K-Market, etc.” customer
can already find and purchase “smart” lamps, which support different brightnes s, colors and,
of course, reduce the usage of electricity.
 11

4.2 ”Domintel – smart living experience”

I chose Belgian company Domintell for my research, because this company has some ad-
vantages to other companies. Domintell manufactures an automated control system designed
to control and manage lighting, heating, ventilation, water supply, security, audio / video equip-
ment and other engineering systems at home. Domintell – a perfect example of a closed system.
All devices are united by one cable, which significantly reduces cable management, makes the
system flexible and makes it easy to expand its functions. The system can be configured and
modified at the request of the owner. All functions of the system can be controlled distantly
from the remote control or even from a mobile phone. Domintell allows integrating various
subsystems, ensuring their coordinated and cooperated work and high functionality of the entire
complex.

The entire concept of a smart home involves the coordinated work of various systems. This
allows not only to exclude conflicts during their functioning, but also to ensure harmonious
interaction. A classic example: an air conditioner will not cool a room while the heater is work-
ing, so two different modules (subsystems) cannot work at the same time, and this is the perfect
example of coordinated work. Integration provides comfort inside the house. The smart home
takes over the management of the entire complex. With the request, a smart home controls
lighting, curtains, air conditioning, floor heating, audio / video systems, bath etc.

Internet website (Domintell 2019)

4.3 Functions

-Light control

Indoor lighting throughout the house, outdoor lighting, dynamic light scenes that allow to give
different "moods" to the room, turn on when passing, smoothly turn on incandescent lamps,
taking into account the power, turn off all devices by one command. Spotlights are now rele-
vant, allowing to illuminate the room as required by what is happening in it, and the control of
 12

the lighting system can be entrusted to an intelligent system. There are two ways to implement
automatic light control. In the first of them, each room is equipped with a separate remote con-
trol. Several buttons on it are responsible for individual lighting fixtures. The light can be con-
trolled without getting up from a chair or sofa with a special controller.
The second method is a complete automation of lighting using special sensors. As soon as a
person enters the room, the light in it turns on, and turns off some time after leaving. Such an
automation system is extremely convenient: this is especially noticeable if both hands are busy
with something. The usual switches, however, are not canceled in this system: The lights can
be turned off manually, while owner remains in the room.

-Power outlet control

Turning on and off groups or individual devices in each room. At the same time, you can control
various household gadgets, for example, turn off the TV in the children's room, turn off the
power of the iron after a specified interval of time, or set up function to turn off everything
when leaving the house area.

-Security and alarm

Motion sensors and window or door closure sensors protect rooms from unauthorized entry.
Safety functions also include protection against water flooding, fire alarms, power failure of
electrical appliances when leaving. The ability to send SMS messages in emergencies, turning
on sirens, simulating presence. In addition, the system allows organizing panic buttоns, for ex-
ample, in the children's room, by the patient’s bed, etc.

-Micro-Engine Control

Micro Engine means curtains, blinds, shutters, automatic gates, barriers, garage doors, pumps,
moreover, everything that has small engines inside.

-Notification

Notification for a mobile phone in case of emergency – such as fire, water flooding, unauthor-
ized entry, etc. The notifications done by sending SMS messages from a mobile phone, or in-
app notifications. If something is going wrong, householder will instantly know about it.
 13

-Multi-Room system

A multi-room is a system for transmitting an audio signal from several sound sources in differ-
ent rooms. Multimedia allows you to listen to music not only in the room where the sound-
reproducing equipment is installed, but also in any other house, or on the street, or even in
rooms where these systems are rarely installed, for example, in a swimming pool, a bathroom,
an open bathroom, terrace, etc.

-Climate Control

Climate control involves the measurement and maintenance within the specified limits of in-
door air parameters: temperature, humidity, composition. To ensure this, various systems are
used: underfloor heating (electric and water), radiators, fan coil units, air conditioning and ven-
tilation systems, humidifiers and dehumidifiers, ionizers, etc. Therefore, for an integrated cli-
mate control system, there is a need to ensure coordinated management of all these devices. In
addition, in a modern house there is a task of supporting a different climate in different rooms.
In addition, the ability to manage the climate on a schedule that can be flexibly changed for
different days of the week or host preferences.

This also includes the ability to remotely control the climate via the Internet, or a mobile phone
or from the administrator’s computer, if we are talking about a hotel. the ability to automatically
use various energy resources for heating, depending on daily changes in tariffing makes this
system special. Finally, the optimization of equipment operation in order to save energy. Of
course, energy conservation depends both on the country's climate and on other parameters.
Sometimes it can be up to 50%. All this provides a smart home and gives the person the oppor-
tunity to enjoy comfort.

-Automatic watering

This system includes: water control, pump control, scheduled control, weather accounting, eve-
rything to make your plants grow up, while you are not at home.

Internet website (Domintell 2019).

 14

Elsenpiter, J. Welt. 2005. "Smart House building itself".

4.4 Comfort

A large number of remotes in the house, which have the habit of being lost, people are usually
confused about which remote to pick up, in order to control the device. However, there is a
solution - one intuitive remote that can control almost any device. House owner presses the
“virtual” button with the caption in Russian “Watch a movie” on the touch screen. As a result
of one click, the curtains close, the lights go out smoothly, the air conditioner turns on, the
phone turns off (if necessary).

Entering the house and on the wall-mounted touch screen click on the button “I'm home” on
the controller. The chandelier in the hallway smoothly turns on at half brightness, the mirror
illumination is also smoothly. The soft lights in the toilet are turned on as soon as the door is
opened (presence detector triggered).

Using a mobile phone, it will not be difficult to select and send an “I will be home in an hour”
SMS message from a prepared list. Immediately the house “wakes up” from hibernation: the
heating and ventilation system turns on and sets the necessary temperature and humidity, the
paths melt from ice and snow on the way to the house, and upon arrival the facade of the house
and paths will be lit, and the temperature in the garage and the house will reach a comfortable
level.
15
 16

5 SMART MODULES (CONSOLES)

5.1 Yandex control device

Here is a remote control from the TV, to perform any action just press the button of this remote
control. However, there are no buttons in the Yandex smart console; the voice assistant Alice
controls it. For example, there is a task to turn on the TV. It can either to find the remote control
and press the button, or pronounce, "Alice, turn on the TV", or press the button on the device
itself. All of them have the right to life, and the convenience of each depends on the specific
situation. However, it is worth remembering that the smart home system should make everyday
life more convenient, and the smart remote will allow to automate devices that are not included
in this system.

Now, bullets can control only two types of devices: televisions and air conditioners. I hope that
the list of possible devices (and control commands) will be expanded in the future.

TABLE 1. Control Device

Manufacturer Yandex
Model Yandex. Remote(YNDX0006)
Case material Glossy black and matte plastic
Range Up to 18 m.
Communication Modules Wi-Fi 802.11 b / g / n 2.4 GHz
Power 220-240V, 50Hz
Dimensions Diameter 65mm, height 25mm
Weight 62 gr.

There are seven infrared transceivers at 38 kHz under the remote control case, the range of
which should reach up to 18 meters. The device is made in Switzerland, while manufactured in
China. The service life is only 2 years.
 17

5.2 Examples of interesting modes

-August Smart Lock

Smart lock allows avoiding usage of the usual physical keys, leaving them in the past. A virtual
key, unlike a physical one, cannot be pulled out of jeans pocket or bag. In addition, such a key
cannot be lost during a walk. The lock uses a Bluetooth connection, and can be controlled it
either directly or through a controller. The August Home application allows creating virtual
keys that are individual for each user. Each visit is registered, which makes it possible to view
statistics on the use of the house. Also in the application, you can enable the automatic unlock
function of the lock when a smartphone approaches a certain distance. In this case, the phone
does not even need to be pulled out of pocket; the main condition is the included Bluetooth.
This is convenient in cases where the hands are busy with purchases or other voluminous things.

-Philips Hue White and Color

Philips Hue is the perfect light for home lighting. The light bulb can be installed in your favorite
sconce, desk lamp or ceiling lamp and control the brightness and intensity of the radiation, the
shade of light, the on / off time from devices from Apple from anywhere in the world via the
Internet. In addition, timer can be set up to turn on the light bulb in the morning and wake up,
especially in autumn and winter; it will be much easier and more pleasant. The Philips Hue bulb
not only provides pleasant lighting for the room, but also saves energy, because it is 80% more
economical than conventional incandescent lamps.

Internet website (Apple 2019).

 18

6 MARKET

6.1 Pricing

 50-75 EUR /sq. m - basic options (lighting control)

 75-100 EUR /sq. m - typical options (lighting and heating/window blind control)
 100-150 EUR /sq. m - comfortable variant (lighting, heating, window blinds/air condi-
tioning)
 150 EUR /sq. m - luxury variant (lighting, heating, air conditioning, window blinds +
extras)

The given prices cover the cost of the whole system (design, cabling, electric switch cabinets,
system devices, outlets, system start-up) without actuators (lamps, radiators, window blinds,
etc.). The often cited great price differences between systems in practice reach only up to a few
per cent, because each system has to include cabling (which is often more expensive than the
equipment itself), electric outlets, etc., so the price different in the system devices themselves
does not greatly influence the cost of the whole installation.

The prices given for each system (net prices without VAT) were calculated for a sample house
having an area of 200 sq. m, and cover the control of 40 light circuits (including 4 dimmed), 16
window blinds and 8 independent heating zones, as well as design, laying of the installation,
equipment assembly and system configuration. If a system should not foresee heating control,
then the price includes electronic programmable thermostats.

TABLE 2. Price Table

Basic systems 'Middle-class' sys- Advanced systems

tems

traditional 10 896 16 727

installation Dupline
Cardio 16 312 IDRA 15 988 Lonworks 17 090
Hometronic 18 078 IHC 14 841 Crestron 20 344
Luxor 14 533 LCN 16 866 Lutron 21 085
X10 14 146 Xcomfort 15611 KNX/EIB 17 17 458
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Of course, even a basic system configuration provides comfort that cannot be matched by tra-
ditional installations, and thanks to energy savings, the cost of the system pays itself back within
a few years. “KNX” is one of the main systems in Europe and the US.

These ready-made Smart Home systems differ in price and full functionality. Basic is suitable
for those who do not need a large set of equipment due to the limited budget and area. Advanced
systems allows equipping customer’s home with modern automation and security technologies,
but to implement this option requires a large budget. Medium budget offers the opportunity to
get wide functionality at a more affordable price. However, in the pricing table shown, that
sometimes basic systems cost more than middle-class ones, so the customer has to choose care-
fully.

The increasing importance of combating security issues is expected to fuel the growth in de-
mand over the forecast period for smart and connected homes. In addition, it is expected that
the implementation of advanced wireless technologies, including HVAC (Heating, ventilations,
and air conditioning) controllers, safety and access regulators and entertainment monitors,
would stimulate market growth. Moreover, the recent Internet of Things (IoT) developments
that resulted in price drops of sensors and processors are expected to push manufacturers to
adopt domestic automation.

6.2 Smart Homes in Finland

The smart-home ecosystem continues to expand rapidly, but market growth levels are directly
associated with 5 G deployment speed. Recent IoT acquisitions by Google, Apple, Amazon and
Alibaba have dramatically changed the landscape, providing opportunities for all kinds of busi-
nesses, but also forcing industry consolidation. Considering the current moderate consumer
needs, long periods of product replacement and increasing accessibility of phones, adoption
will increase gradually in the coming years. Below there are a few main stats:

 In 2019, revenue on the Smart Home market in Finland was EUR € 275 m.
 Revenue is expected to show a 14.3 percent annual growth rate (CAGR 2019-2023),
resulting in a EUR € 518 m market volume by 2023.
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 The penetration of households is 17.6% in 2019 and is expected to hit 34.6% by 2023.
 Currently, the average revenue per built Smart Home is EU € 613.52.
 A global comparison reveals that most revenue is generated in the United States (EUR€
22 m in 2019).

Internet website (Statista 2017. Finnish Market Analysis).

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7 CONCLUSION

The smart home is a relatively new technology, which is just beginning to develop actively.
Thanks to various researches of such magazines as Forbes, Times, independent analyzes, etc.,
we can conclude that the bright future is predicted for smart homes. I believe that the smart
home system is a great start as a business project, because the success of involving this tech-
nology depends primarily on people who are able to convey to customers all the advantages
and disadvantages of this system. People who will let new technologies into their home in the
near future will be able to greatly ease their everyday life, make it more comfortable and en-
joyable.

In order to predict the direction of technology development, we analyze the facts available to
us. The concept of “smart home” is interesting and promising. At the moment, a large number
of companies, offer services to create such smart houses. The technology itself is implemented
cheaply (wirelessly or using existing power cables), but setting up such a system, especially if
it is controlled by software from a computer, is rather a complicated thing for the average per-
son, as well as any new technologies that people get used to for a long time, and will cost a lot
to its owners. In addition, the presence of a number of such decisions must be taken into account
when developing the design of the premises. An ideal place to apply such technologies is private
houses and cottages, as well as large offices. In principle, given that the owners of country
houses spend much on their maintenance, the cost of such a decision will be relatively small.

In a smart home, all electronics and household appliances - from climate systems to televisions
- are controlled by extremely complex computer systems. “Smart Home” turns on light and
music when guests and loved ones enter the house and move through the rooms. At the same
time, there is light and musical accompaniment as the visitor moves through the “smart” apart-
ments. Changes are done according to the wishes of the owner, which are stored in the settings.
A person does not need to set the temperature regime in the rooms or adjust the lighting - the
installed “intelligent” system recognizes by the state of the owner what temperature and lighting
he needs at the moment for complete comfort. To ensure convenience in the apartment, a variety
of technologies can be used, from homemade devices to highly intelligent computer systems.

There was a time when people refused touch phones, saying that they could never replace push
buttons, but now everyone has a phone with a touch panel. This technologies until recently
seemed impossible. They provide the highest level of security and safety, bring an incredible
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level of comfort and convenience, make everyday life easier, and help to cope with simple and
routine tasks. All this is a smart home system.
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REFERENCES

Elsenpiter, J. Welt. 2005. "Smart House building itself".

Fedorov. 1999. “How many floors does an intelligent building have?” - “Business: Organization, Strat-
egy, Systems”, No. 10.

M.E. Soper. Practical tips and solutions for creating a "smart home".

V. Arkhipov. 1999. “Systems for an “intelligent building” - No. 45.

Internet website (Apple 2019).

Internet website (BBC research April 11, 2018)

Internet website (Domintell 2019).

Internet website (Forbes 2018).

Internet website (Times 2018).

Internet website (Statista 2017. Finnish Market Analysis).