“Recent years have seen a rapid increase in the use of home automation technology in the U.S. The digital revolution (especially in the world of IoT) has fueled an exciting new phase with companies in the home automation industry, offering consumers new and improved smart home technologies and giving rise to a totally interconnected, easy-to-control environment termed the “smart home.” These devices offer consumers remote control monitoring of common household devices and improved utility savings.
Research from Statista predicts that by the end of 2018, more than 45 million smart home devices will be installed in U.S. homes, making the average revenue per home around $490. This is an annual growth rate for the home automation industry of 22% year over year to nearly $20 billion in the U.S.
This growth is attributed to a number of factors, including the continuing rise in energy costs, decreasing cost of smart home technologies, current government policies and incentives regarding energy consumption, and increasing customer awareness of the impact of their consumptive activities on the environment. Statistics show that, currently, only 12-16% of U.S. homes own smart devices, leaving entire segments of the market untouched, due to the fact that mass adoption has its challenges.” – by Michael Cavvale
Approximately 27 percent of all homeowners in the United States have already purchased at least one Internet of Things (IoT) device, a recent study conducted by home automation firm Wink found, as reported by ReadWrite. The company’s latest Smart Home Index report suggests that the adoption of IoT products and services in the country is on the rise, though it also indicates that many consumers are still reluctant to start committing money to this emerging segment as the initial costs of deploying a smart home system remain relatively high.
More than two-thirds of consumers are interested in the prospect of a smart home system as they’ve revealed a degree of interest in being able to monitor their homes remotely, the study found, noting that increased home security is one of the main reasons why consumers in the country are considering the idea of acquiring a smart home system. While the technology for automating homes is already widely available on the market, the costs of doing so are still rather steep, which is why many consumers still haven’t started investing into IoT products and services, with more than one-third of interviewees saying they’d initially have to commit $5,000 to implement a smart home system. Furthermore, almost every tenth interviewee said a smart home system would cost them $20,000 or more.
Regardless, the figures outlined above only refer to complete solutions, i.e. a combination of products and services that offer full home automation. In light of that fact, the valuations might not be completely realistic, though Wink speculates that the average consumer might not be interested in half-measures and doesn’t consider a semi-automated home to be particularly smart. That mindset will likely need to change if the IoT segment is to experience a significant increase in user adoption rates in the near future, with Wink claiming that even several relatively cheap devices can make one’s home significantly more secure and automated. While homeowners are the largest demographic interested in automated home solutions, a portion of renters would also be willing to invest in the same technology, with more than one-third of interviewed renters claiming they’d be willing to pay $750 more on an annual basis for their accommodations if they were provided access to IoT devices in their places of residence.
April 10, 2017 – Written By
A smart home can be described as a natural extension of the trend which has seen automation gradually invade all walks of human life. In a smart house, various systems like lighting, security, ventilation,., can either be preprogrammed or altered from a remote location through connected devices.
Smarthomes use other concepts like Internet of Things (IoT) as well as WiFi to constantly keep track of changes and transmit relevant information to a user. The home automation hub provides various benefits remote monitoring and control, efficient use of home resources and the creation of a unified control base.
Thus, the Smart Homes Market is in a great position to register a strong amount of growth during the forecast period of 2017-2022.
Home automation companies consider the prime growth drivers to be a few factors like: growing residential demand for advanced security and monitoring systems; more awareness among the public regarding energy conservation and its effects on climate change; the superior experience as well as convenience provided by intelligent home systems when it comes to controlling various tools at home; and a gradual transition towards automatic control of home functions rather than operating them manually in an effort to save time as well as effort.
Currently, the Smart Homes Market is being dominated by the demand emanating from North America. The various initiatives and subsidies provided by the government have encouraged the people in the region to adopt various practices which align with smart house technology.
Energy conservation, integration with a smart grid, control of water and gas are some of the areas which have received a lot of focus so far. Meanwhile, Asia-Pacific is expected to be a key future demand driver as the emerging countries located in the region look to adopt the most advanced technology in an effort to battle climate change as well as to promote sustainable living.