The smart home technology market is growing quickly. Many entrepreneurial companies are producing smart home devices that can help homeowners use technology to manage networked devices in their home. The Internet of Things (IoT) has enabled this growth, making it possible to connect physical devices with internet connectivity and sensors to provide new services to households. Examples include the Nest Learning Thermostat, the Nest Cam for monitoring activity in a home, and the August Smart Lock.
According to Statista.com, a website that compiles statistics from over 18,000 sources, the smart home market can expect explosive growth. For example:
Gartner Research predicts that in 2020, we’ll see approximately 25 billion IoT-enabled devices, a good portion of which will serve to automate homes. All indicators are that smart home technology will be a major force in the digital marketplace of the future.
Home automation is split into many different segments. These definitions will describe the most common.
The smart home market continues to be driven by early adopters. They’re people who are tech savvy, often millennials and generation Xers, who enjoy digital gadgets. However this masks the evolution that smart home technology has gone through in recent years – moving from relatively simple connected devices, to connected systems today that can learn how people live, and automatically adjust themselves.
Homeowners will adopt smart home technology when they can specifically identify how a system helps them live better and save money. As a result, we expect to smart home technology continue to be concentrated on improving energy efficiency and home security, and in time see greater adoption of smart appliances (such as refrigerators). An October 2016 survey by the 451 Research Group found that a smart thermostat was the device most consumers planned to use.
The best way to help the homeowner see that potential is to have smart home devices that can talk to each other and that can be controlled from a central device. Besides convenience, the device needs to provide the information a homeowner will need to appreciate the value of smart home technology.
In order for the smart home market to thrive, there are still some challenges that device manufacturers need to overcome. The main issue is interoperability and getting different devices to work seamlessly together. Typical consumer issues include:
Typical homeowners will make decisions about smart home technology, not based on acquiring fun gadgets, but based on benefits, cost justification and cost savings.
We can’t afford to leave the homeowner with a range of separate devices. Central controllers, enabled by the IoT, will be needed to realize the potential of the smart home marketplace. Some devices such as the Amazon Echo and Google Home are moving in the direction of centralized smart home control.
If you want to find out more about smart home technology, then join us next week when we will be holding an online webinar about smart homes and home automation. Register for free here.
March 31 / 2020