IoT Strategy

Parks Associates to Preview Key Smart Home Trends for 2020 in Industry Webcast

by Parks Associates | Sep. 3, 2019

In 2018, existing smart home households drove the market by expanding their adoption of devices. Households already owning at least one smart home device continued to purchase more devices, bringing the average number of devices in these households to six units compared to 3 devices in 2016.

The latest trends and developments in smart home devices and services include expansion of smart technology into the home builder channel, large tech companies taking measures to increase their smart home assets, the prioritization of energy efficiency use cases, and the impact of DUY solutions on traditional professionally installed home security offerings. 

Home Builder Channel Expansion

Consumer interest in smart home products and services is driving innovation among leading home builders who are crafting diverse strategies for leveraging smart home tech to enhance their brand, differentiate their product lines, and drive revenue.

As more new home builds include smart home features, device manufacturers and service providers targeting the homebuilder market must ensure that these platforms have compelling use cases, are sustainable, and enable broad scale compatibility. Consumers are less likely to buy-in if they believe the technology will soon become obsolete or restricts the range of other technology that can be included in their homes.

Prioritizing Energy Efficiency Use Cases

Energy management applications for the smart home have high appeal among US households, as energy savings appeals to consumers seeking pragmatic value. Similarly, energy management is high priority in the UK and several European countries, potentially creating a strong global appeal for energy-saving smart home products. 

In the US, Clayton—a builder of prefabricated homes—recently partnered with ecobee to sell homes with built-in ecobee thermostats, prioritizing energy efficiency for consumers that may have previously been passed over. Currant recently launched a smart plug with energy saving capabilities, using AI to detect energy usage patterns and suggesting changes that can help the consumer save energy (and money). Amazon partnered with Arcadia Power to provide energy saving smart home device kits to consumers. 

Innovations

Recent innovations in smart home devices and services include the continued development and humanization of voice-enabled technology and the expansion of control methods for the smart home.

Evolution of Voice-Enabled AI Solutions

As voice-enabled technology continues to become the center of the smart home ecosystem, companies such as Amazon, Google, and Microsoft are working on initiatives to make human interaction with voice assistants feel less mechanical. Features under development include context retention skills that minimize the need to use a wake word (e.g. “Hey Google/Siri” or “Alexa”) and capabilities that allow voice assistants to closely mimic human speech patterns.

Expanding Smart Home Control Methods

Voice control is an important factor in the development of the smart home industry; smart home players look to the success of smart speakers with voice assistants to potentially drive smart home device adoption as the market matures. However, though voice control can be useful and convenient, it does not always provide the best user interface – particularly when sensitive information is being communicated or becoming loud and disruptive in a quiet environment. Recent developments by voice solution providers indicate that companies acknowledge these challenges and are working toward providing alternative methods of controlling smart home devices.

DIY Offerings Disrupting Traditional Professional Security Offerings

DIY and smart home products are adding volatility to the market for professionally monitored security and driving changes in the home security business. These solutions do have advantages with lower-cost, contract-free monitoring options that will attract new consumers, and professional security providers are navigating the adoption of DIY offerings carefully so as not to erode the base of subscribers with professional monitored systems. The strong increase in professionally monitored systems that are self-installed is fairly recent, and pro¬fessional installation still dominates.

Parks Associates will host the complimentary industry webcast “Looking Ahead to 2020: Smart Home and Security Trends in Europe and the US” on Thursday, September 26, 1 p.m. CT ( 2p.m. ET) to give a sneak preview of smart home trends for 2020. During this one-hour webcast, Parks Associates analysts will share insights on major trends impacting the consumer technology markets, including smart home, home security, connected health, and energy management.

During the webcast, Parks Associates will highlight recent consumer findings from surveys in the US, Canada, and the UK, and put this consumer data in context with key market developments, technological innovations, business model disruptions, and new, emerging sales channels.

Speakers include:

  • Dina Abdelrazik, Senior Analyst
  • Lindsay Gafford, Research Analyst
  • Jennifer Kent, Senior Director, Parks Associates
  • Chris O’Dell, Research Analyst, Parks Associates

For further reading on the key connected living innovations and trends developing globally, please check out Parks Associates’ report Connected Living Outlook: Value Beyond Connectivity.
 




Parks Associates

Parks Associates

About Parks Associates

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, and Smart Energy Summit: Engaging the Consumer.

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