It is estimated that by 2021, 73 million homes — or 55 percent of all homes in the United States — will be smart-homes due to technology innovations that increase the efficiency and comfort of consumers’ homes, according to market research firm Berg Insight. Some of today’s most popular devices that homeowners and homebuyers alike are seeking include:
Smart thermostats – Among the most popular and arguably the most effective at improving energy efficiency, smart thermostats can learn the temperature preferences of the homeowner and auto-adjust to his or her schedule.
Smart security systems – The price points and options are seemingly endless, but highlights typically include remote/mobile access and control, to security camera footage and auto-locking doors.
Smart light bulbs – Certain energy-efficient light bulbs can keep shining when the power goes out, illuminate or dim at desired times or at the sound of a doorbell, and sync with smartphones so the lights can turn on when the homeowner is not home.
Smart doorbells – These come in various designs and colors, but most offer high-definition footage of live and/or recorded video whenever someone presses the bell, or on demand if the owner wants to see if someone is at the door.
Smart window shades – Control them from a phone, schedule them to open and close at specific times and/or simply tell them what to do using the voice activation feature that many models offer.
Smart hubs allow users to control multiple smart-home devices that are interconnected through a central hub. Most of the big manufacturers offer hubs for their various products, but products from different makers do not always integrate easily with each other, if at all. It is important to determine what your home automation needs are first and then identify which products offer the most compatibility.
“I always suggest that consumers start small with just a Hub and a Multipurpose Sensor,” said Jayson Howell, home appliance builder division account manager at Samsung and HBA member. “With those in place, you can do so many things — get notifications if a door is opened, trigger a light to go on if movement is detected in the garage, or know when your elderly parent opens the medicine cabinet.”
There are many applications for using smart-home technology depending on the needs and desires of a homeowner. “Via just a single app, users can turn on the lights, turn up the music and manage everything in between, whether they’re at home or away from the house,” said Howell. “The possibilities are endless.”
Given the convenience, efficiency and ease of use of smart-home technology, expect to see several of these features in future Parade homes.
The Internet of Things (IoT) has been labeled as “the next Industrial Revolution” because of the way it will change the way people live, work, entertain, and travel, as well as how governments and businesses interact with the world.
In fact, the revolution is already starting.
That brand new car that comes preloaded with a bunch of apps? Internet of Things. Those smart home devices that let you control the thermostat and play music with a few words? Internet of Things. That fitness tracker on your wrist that lets you tell your friends and family how your exercise is going? You get the point.
But this is just the beginning.
BI Intelligence, Business Insider’s premium research service, has tracked the growth of the IoT for more than two years, specifically how consumers, businesses, and governments are using the IoT ecosystem. John Greenough and Jonathan Camhi of BII have compiled an exhaustive report that breaks down the entire IoT ecosystem and forecasts where the burgeoning IoT market is headed. And you can learn more and purchase the report here: The Internet of Things Ecosystem Research Report
During the creation of this report, they put together the infographic below to show how the IoT ecosystem functions and to forecast how the IoT is poised to explode by 2020.
You might want to think about investing in companies working to make our homes smarter, according to Barclays.
Manav Patnaik, an analyst at Barclays, said in a note to investors on Tuesday that the connected home “could represent one of the most significant investment opportunities over the next several years.”
Google, Amazon, Apple and Microsoft are all major players in the space named by Barclays, and each is trying to create its own ecosystem. Other companies, such as light bulbs built by Philips, not specifically called out in the report, can be used across different platforms developed by Google, Apple and Amazon.
Patnaik argued that the connected home industry could be worth more than $300 billion by 2020. Barclays says hardware could contribute $130 billion to that estimate while software and advertising would amount to about $170 billion.
Smart homes aren’t necessarily new, but they have previously been limited to wealthy consumers who could afford to have highly specialized systems installed in their homes. Now, thanks to Apple HomeKit and other solutions, consumers only need an affordable hub and a smartphone to add voice controls to gadgets ranging from light bulbs to vacuums and garage door openers.
Barclays said voice control helped spur new interest in the smart home and which will be the driving force behind growth in the space.
“We believe a final major driver for overall adoption rates will be the ability of consumers to save money on their electric bills: We estimate that the full opportunity of converting to a smart home with a fully electric vehicle replacing a conventional vehicle would save consumers 46.6% on their annual energy bills while also increasing overall household usage by 14% in our base case,” Barclays said.
The global home automation market is expected to reach USD 39.88 billion by 2024, driven by rising necessity of consumers for protection against fire and break-ins. Availability of automated systems that can be operated over high-speed Wi-Fi, powerful smart phone ubiquitous, and growing popularity of Internet-connectable gadgets is expected to drive market growth. Moreover, reduced energy consumption and availability of a broad range of products is anticipated to boost the home automation market.
North America was the largest market accounting for 35.7% of the share in 2016, owing to the adoption of the technology and availability of affordable solutions is expected to augment market growth. Europe is expected to witness sluggish growth over the forecast period on account of market saturation. Factors such as awareness towards security & safety of property, particularly in countries such as Germany, UK and France, is expected to drive the market over the forecast period. Asia Pacific, Central & South America, and the Middle East are expected to lead the global home automation market in the next few years.
Wireless systems were extensively used and are expected to witness a growth at an 11.7% CAGR on account of shift of consumers to a hands-free method of operation. Computing network is anticipated to achieve substantial growth in future owing to the availability of wearable computing devices and high-speed internet connectivity.