As the calendar turns, all eyes in the tech sector are on the smart home. For years now, prognostications have suggested the smart home industry is ready to take a major leap forward. In 2018, significant progress was finally made. Ultimately, this has paved the way for an even bigger year in 2019.
The Growth of the Smart Home
“In2017, 433.1 million smart home devices were shipped worldwide, growing 27.6% from the previous year,” BusinessWire explains. “Looking ahead, IDC anticipates a compound annual growth rate (CAGR) of 18.5% as the market balloons to 939.7 million devices shipped in 2022.”
Five years ago, just 13 percent of American households had some sort of smart technology integrated into their homes. In 2019, it’s anticipated that at least 38 percent of American households will have entered the market. When compared to the UK, the US is predicted to have an 11 percent higher penetration rate.
At the end of the day, growth in the smart home industry will always be predicated on two things: innovation and adoption. In order for the industry to continue moving forward, there has to be a steady and long-term commitment towards the development and implementation of new technology that customers – i.e. homeowners – find useful. Without new technology, there’s no consumer-side appeal.
But innovation without adoption isn’t enough to push the industry forward. Customers have to be willing to adopt the technology and integrate their homes (which are highly personal and private spaces).
Ultimately, innovation should feed adoption and adoption should feed innovation. It’s this convenient cycle that has pushed the smart home industry forward over the past decade and will continue to do so into the near future.
Major Smart Home Tech Trends
As the smart home industry scales, a few innovations, in particular, are expected to catalyze the growth. These include:
reality is that security is fundamental. Your consumers must feel
that their devices not only work flawlessly, but also secure your
private data,” explains
Sam Salem, Senior Director at Jabil, a products solutions
company. For adoption to move in tandem with innovation, security
will have to become a bigger factor. Customers must feel that
they’re safe to bring new technology into their homes.
integration. One of
the biggest points of friction in the smart home sector over the
last few years has been the challenge of integrating siloed
technology. Smart homeowners may have five or six different
solutions in the house, but they aren’t integrated (nor do they
have the ability to communicate). In the coming year, look for
better, smoother integration. Z-wave is one of the leading
technologies, allowing homeowners to sync
smart motorized shades with security systems, thermostats, and
more. Other similar technologies will experience growth as well.
voice assistants. This
past year has been huge for AI voice assistants. From Google Home to
Amazon’s Alexa products, millions of people now have voice
assistants inside their homes. In the coming 12 to 18 months, tech
companies will emphasize emotional AI. In other words, these devices
will soon be able to tell more about an individual’s emotional
state by the tone and inflection of their voice. And as these
assistants learn the personalities and moods of their users, the
experience will become even more powerful.
TVs were once a huge talking point. And though it seems like the
conversation around them has been quieted by other smart gadgets,
the reality is that smart entertainment is still a huge factor. The
IDC research shows that smart TVs, digital media adapters, and
IP-connected video devices will continue to deliver a CAGR of 8.3
percent between now and 2022. Furthermore, these devices will
capture roughly three-quarters of the dollar value of the entire
smart home market (in terms of average sales price).
What Does the Future Hold?
Nobody knows what direction the smart home industry will take (at least in terms of specific innovations and trends). However, one thing is clear: growth and expansion are coming. This isn’t a fad that will fizzle out. The smart home is the future of America and businesses
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