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DEC 5, 2016

Insurance to drive sales of smart water devices in U.S.

IoT research firm shows 14% of U.S. broadband households plan to buy a smart water leak detector in 2016

A new report from Parks Associates finds annual sales of smart water leak detectors in North America will exceed 3 million in 2016, and these devices will get a boost from the insurance industry over the next four years. Only 3% of U.S. broadband households owned a smart water leak detector at the end of 2015, but 14% plan to buy one in 2016.

“Smart leak detectors are getting serious consideration by the insurance industry thanks to their potential to mitigate risk of water damage,” said Brad Russell, Research Analyst, Parks Associates. “Most current detectors are easily installed on top of existing home control systems, and new Wi-Fi models, such as the Honeywell Lyric Wi-Fi Water Leak and Freeze Detector, can serve as an entry point for smart home technologies. Currently insurers are offering device education and product recommendations to their customers and are looking to test new strategies to incentivize adoption of these devices.”

In addition to Honeywell, key players in smart water leak detectors include Aeon Labs, GE Security, FortrezZ, and leakSMART, along with those solutions offered by smart home platforms like Samsung SmartThings, Lowe’s Iris, and Insteon.

The Parks Associates report, Managing Home Resources: Smart Energy and Water Products, also examines smart energy technologies and smart sprinkler controllers. Nearly 10% of U.S. broadband households own a smart thermostat. Smart sprinkler controllers combine a variety of data sources to combat inefficient irrigation methods; North American households will buy nearly 2 million smart sprinkler controllers in 2016.

“The popularity of smart thermostats, invigorated by the Nest Learning Thermostat, continues to grow,” Russell said. “Twenty percent of U.S. broadband households plan to purchase one in 2016, driven largely by their ease-of-use and potential for energy and cost savings. Smart thermostats can quickly pay for themselves. The average U.S. household saves $173-$219 by using a smart thermostat.”

Managing Home Resources: Smart Energy and Water Products examines the market for smart thermostats, smart water leak detectors, and smart sprinkler controllers. It assesses which consumer segments are most likely to purchase resource management devices and what other device categories consumers are most likely to adopt. The report also examines key industry players and trends in energy and water management, and it includes five-year forecasts for smart thermostats, smart leak detectors, and smart sprinkler controllers.

Parks Associates will present new smart energy data at the firm’s Smart Energy Summit: Engaging the Consumer on February 20-22, 2017, in Austin, Texas. Visit www.ses2017.com for updates on the conference and the expanding market for energy solutions and home controls.

Managing Home Resources: Smart Energy and Water Productsis available to purchase at www.parksassociates.com. To schedule an interview with an analyst or to request specific energy management or smart home data, contact Holly Sprague at hsprague@gmail.com, 720.987.6614.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

About Smart Energy Summit

Smart Energy Summit: Engaging the Consumer addresses the evolution of the consumer utility market, the impact of COVID-19 on energy management programs, and new opportunities to drive engagement in utility-sponsored programs. Virtual panels and networking sessions, featuring executive-level experts from multiple industries, address strategies for utilities, service providers, retailers, software providers, and manufacturers to expand and monetize energy management and other energy-focused offerings through consumer engagement, new business models, unique partnerships, and innovative technologies.

Smart Energy Summit features an in-person conference February 13-15 at the Omni Austin Hotel Downtown, with virtual sessions on June 15, August 17, and November 9. The summit agenda features leaders from utilities, state and national regulators, telecom and security companies, retailers, and OEMs. Follow the event on Twitter at @SmartEnergySmt and #SmartEnergy23. For information on speaking, sponsoring, or attending Smart Energy Summit, visit www.smartenergysmt.com.