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Smart Home market forecast to Take Off 2016

By |May 17th, 2016|Smart Home, Uncategorized|

The US smart home market has yet to take off. Quirky’s recent announcement that it was filing chapter 11 bankruptcy — and selling off its smart home business, Wink — highlights this well.

At its current state, we believe the smart home market is stuck in the ‘chasm’ of the technology adoption curve, in which it is struggling to surpass the early-adopter phase and move to the mass-market phase of adoption.

There are many barriers preventing mass-market smart home adoption: high device prices, limited consumer demand and long device replacement cycles. However, the largest barrier is the technological fragmentation of the smart home ecosystem, in which consumers need multiple networking devices, apps and more to build and run their smart home.

In a new report from BI Intelligence, we analyze current US consumer demand for the smart home and barriers to widespread adoption. We also analyze and determine areas of growth, and ways to overcome barriers.

  • Smart home devices are becoming more prevalent throughout the US. We define a smart home device as any stand-alone object found in the home that is connected to the internet, can be either monitored or controlled from a remote location, and has a noncomputing primary function. Multiple smart home devices within a single home form the basis of a smart home ecosystem.
  • Currently, the US smart home market as a whole is in the “chasm” of the tech adoption curve. The chasm is the crucial stage between the early-adopter phase and the mass-market phase, in which manufacturers need to prove a need for their devices.
  • High prices, coupled with limited consumer demand and long device replacement cycles, are three of the four top barriers preventing the smart home market from moving from the early-adopter stage to the mass-market stage. For example, mass-market consumers will likely wait until their device is broken to replace it. Then they will compare a nonconnected and connected product to see if the benefits make up for the price differential.
  • The largest barrier is technological fragmentation within the connected home ecosystem. Currently, there are many networks, standards, and devices being used to connect the smart home, creating interoperability problems and making it confusing for the consumer to set up and control multiple devices. Until interoperability is solved, consumers will have difficulty choosing smart home devices and systems.
  • “Closed ecosystems” are the short-term solution to technological fragmentation. Closed ecosystems are composed of devices that are compatible with each other and which can be controlled through a single point.

Read Complete Article on Business Insider, Tech

500 Smart Devices in Family Homes by 2022 [Gartner]

By |September 12th, 2014|Charts & Graphs, Forecasts (In-Depth), Market Data, Outside Sources*|

ShareMumbai: The falling cost of adding sensing and communications to consumer products will mean that a typical family home, in a mature affluent market, could contain several hundred smart objects by 2022.


Gartner
said that the smart home will be an area of dramatic evolution over the next decade and will offer many innovative digital business opportunities to those organizations who can adapt their products and services to exploit it.

“We expect that a very wide range of domestic equipment will become ‘smart’ in the sense of gaining some level of sensing and intelligence combined with the ability to communicate, usually wirelessly,” said Nick Jones, vice president and distinguished analyst at Gartner. “More sophisticated devices will include both sensing and remote control functions. Price will seldom be an inhibitor because the cost of the Internet of Things (IoT) enabling a consumer ‘thing’ will approach $1 in the long term.”

The number of smart objects in the average home will grow slowly for at least a decade because many large domestic appliances are replaced infrequently. However, although a mature smart home won’t exist until the 2020 to 2025 time frame, smart domestic products are already being manufactured and the first digital business opportunities they enable have already emerged.

Smart domestic product categories are manifold and range from media and entertainment, such as consoles and TVs, to appliances, such as cookers and washing machines, to transport technologies, security and environmental controls, and healthcare and fitness equipment.

Wireless technology will be a key foundation of the smart home and most of the device categories will be connected wirelessly although no single technology will dominate. Wi-Fi, Bluetooth, ZigBee, cellular and various proprietary and mesh networking wireless technologies will all find a place in the smart home. It’s therefore likely that a range of gateways and adapters will be necessary to bridge between the many different standards and protocols. Many domestic wireless smart objects will be portable and won’t have ready access to a wired power supply, so battery manufacturers will profit from the smart home as will developers of power supply and storage technologies such as wireless charging.

The smart home will enable new opportunities at all three levels of digital business framework business process (improving existing processes), business models (new business approaches that disrupt existing markets) and business moments (intercepting and exploiting transient business opportunities).

Despite the many business opportunities afforded by the smart home, the smart home vision faces many challenges, not the least that consumers may need to be convinced of its value. Some elements of smart home technology such as remote controlled switches and dimmers have been available for many years but have very little traction outside techno-geek users because few consumers see sufficient value.

Product designers must strive to create value that goes beyond technological novelty and simple control functions. Furthermore, smart products will be internally more complex than their predecessors but to be successful the product must appear simple and usable for nontechnical individuals.

Consumers are also likely to have concerns over data usage, security and privacy. Digital business models will rely heavily on the additional information that smart products collect compared with their “dumb” counterparts. But inappropriate use of this information could generate a consumer backlash. Business models that analyze information, especially those that combine information from several sources, must pay great attention to issues such as consumer opt-in, education and data security, and product developers should consider external audits of their information usage.

A lack of interoperability and standards may also hinder adoption of smart devices. Currently, the smart home domain is a confusing technical jumble that includes many different networking technologies and protocols, most of which are proprietary and don’t interoperate. Some interoperability initiatives are underway; however, it’s likely that although islands of interoperability will emerge around specific vendors and products, the domain will remain technically fragmented through 2020.

“Devices in the smart home will demand connectivity; some will demand high reliability as they’ll be performing vital functions such as health monitoring, so homes will require reliable high-speed Internet connections,” said Jones. “If these connections fail, many domestic devices might be forced to operate in, at best, a degraded manner. If homes become as dependent on good connectivity as businesses they will need fallback systems.”

 via Family home to have 500 smart devices by 2022 | ET CIO.