While smart home gadgets have to provide a level of comfort living, they are usually overpriced and beyond the price reach of most homeowners, according to a report from Beecham Research.
The researchers argue a lack of awareness and a lack of knowledge of smart home products and their benefits, along with concerns of data privacy and lack of device interoperability are the problems hindering the growth of the smart home market. But on the other hand, the report predicts the revenue from the sale of smart devices for home will reach at a CAGR of 34% over the next five years – i.e. from $3.1 billion in 2015 to $16.2 billion in 2020.
Home safety and money saving devices such as smart thermostats and energy meters are currently driving the market, along with smart home entertainment systems.
Olena Kaplan, senior analyst at Beecham Research and author of the report, said: “In the energy market, the smart thermostat was amongst the first smart devices to control home energy consumption but it has evolved to manage heating systems and energy used by individual appliances. For example, Nest now also offers IP security cameras and CO2 smoke alarms, while Hive offers a smart power socket, motion sensor and windows/door sensors.”
Pointing at the Amazon Echo smart home hub and Samsung Smart Things, Beecham says that most major companies are trying to attract more customers and get a foothold in the home by offering entry products at affordable prices.
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