Bridging the Cost Gap: A Comprehensive Analysis of CAPEX and OPEX for Smart Home Transition from a Provider's Perspective

Nilton F. S. Seixas, Adriano H. O. Maia, George P. Pinto, Dhyego Tavares M. da Cruz, Bruno P. Santos, Ivan do C. Machado, Eduardo S. Almeida, Frederico A. Durao, Maycon L. M. Peixoto, Gustavo B. Figueiredo, Cassio V. S. Prazeres

2025

Abstract

The urgency of addressing global warming has driven global efforts to enhance energy efficiency and transform energy acquisition methods. In this context, the adoption of smart technologies has gained relevance across various domains, including smart cities and smart homes. While smart cities are often promoted through government initiatives, transforming conventional homes into smart homes largely depends on consumer adoption. However, there is a significant gap in the literature regarding the implementation costs and benefits of this transition, with many studies focused on unrealistic scenarios tailored to the average American consumer profile. This study aims to fill that gap by proposing a methodology to estimate the conversion of conventional homes into smart homes, accounting for both capital expenditures (CAPEX) and operational expenditures (OPEX). The proposed approach seeks to enable an affordable transition for a wider range of consumer profiles. Four case studies are presented to demonstrate how smart systems can be integrated into homes, maximizing economic and environmental benefits for end-users. Additionally, the paper analyzes the commercial relationship between manufacturers and smart environment providers, exploring acquisition and operational cost models. As an alternative to the traditional device-based business model, the study suggests a subscription-based system, supported by the continuous delivery of smart solutions, promoting greater customer retention and scalability.

Paper Citation

in Harvard Style

Seixas N., Maia A., Pinto G., M. da Cruz D., Santos B., Machado I., Almeida E., Durao F., Peixoto M., Figueiredo G. and Prazeres C. (2025). Bridging the Cost Gap: A Comprehensive Analysis of CAPEX and OPEX for Smart Home Transition from a Provider's Perspective. In Proceedings of the 10th International Conference on Internet of Things, Big Data and Security - Volume 1: IoTBDS; ISBN 978-989-758-750-4, SciTePress, pages 27-38. DOI: 10.5220/0013201900003944

in Bibtex Style

@conference{iotbds25,
author={Nilton Seixas and Adriano Maia and George Pinto and Dhyego M. da Cruz and Bruno Santos and Ivan Machado and Eduardo Almeida and Frederico Durao and Maycon Peixoto and Gustavo Figueiredo and Cassio Prazeres},
title={Bridging the Cost Gap: A Comprehensive Analysis of CAPEX and OPEX for Smart Home Transition from a Provider's Perspective},
booktitle={Proceedings of the 10th International Conference on Internet of Things, Big Data and Security - Volume 1: IoTBDS},
year={2025},
pages={27-38},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013201900003944},
isbn={978-989-758-750-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 10th International Conference on Internet of Things, Big Data and Security - Volume 1: IoTBDS
TI - Bridging the Cost Gap: A Comprehensive Analysis of CAPEX and OPEX for Smart Home Transition from a Provider's Perspective
SN - 978-989-758-750-4
AU - Seixas N.
AU - Maia A.
AU - Pinto G.
AU - M. da Cruz D.
AU - Santos B.
AU - Machado I.
AU - Almeida E.
AU - Durao F.
AU - Peixoto M.
AU - Figueiredo G.
AU - Prazeres C.
PY - 2025
SP - 27
EP - 38
DO - 10.5220/0013201900003944
PB - SciTePress