New research, Smart Home Evolution: Unlocking Value, released in partnership with the Connectivity Standards Alliance 

Parks Associates, in partnership with the Connectivity Standards Alliance (CSA), has released a new white paper, Smart Home Evolution: Unlocking Value, which explores the progress of the smart home, highlighting key milestones, emerging consumer demands, and the increasing role of artificial intelligence (AI). The white paper reveals 38% of buyers now identify as “Early Majority,” up from 20% six years ago. Since 2020, roughly 13 million new US internet households entered the smart home market, expanding the base of households that own a smart home device to 54 million. 

This shift is critical for reaching broader adoption of individual product categories and achieving greater efficiencies of scale, as new households have distinctly different expectations and needs from early smart home adopters.

“As the market has grown, the base of households owning smart home devices has expanded beyond tech enthusiasts to more practical users seeking lasting value and reasonable costs,” said Jennifer Kent, VP, Research, Parks Associates. “As the market moves into this next phase, new layers of value, including integrations/interoperability, intelligence, and the development of services, are needed.”

Smart Home Evolution: Unlocking Value provides industry stakeholders with relevant data and insights on the future of the connected home. Other data points highlighted in the research: 

Households with kids are smart home champions – 63% of households with kids own at least one smart home product compared to just 37% of those without kids, and those with kids are more likely to recommend the products they own to others.

  • 52% of smart home device owners who set up a device themselves had difficulty at setup.
  • 55% of consumers in US internet households find disaggregated energy insights appealing – that is, the amount of energy each device and appliance in their home consumes.
  • 65% of smart thermostat owners are willing to allow their smart devices and appliances to share data with each other to better optimize energy use.
  • 90% of businesses are using AI internally, and 79% are building AI into their consumer-facing products and services. 

“The smart home market is entering a new phase, one where trust, simplicity, and real-world value matters,” said Tobin Richardson, President and CEO of the Connectivity Standards Alliance. “Consumers expect connected experiences to work effortlessly and intuitively together. Through collaborative standards like Matter and forward-looking ones like Aliro, the Alliance is helping the industry and our members unlock sustainable growth, enable meaningful experiences, and deliver on the promise of a more connected home.”

“Greater intelligence, ease of integration, adjacent service offerings, and quality of service will shape the market going forward and define the competitive edge,” Kent said.

The research white paper Smart Home Evolution: Unlocking Value is available for download.

About the Connectivity Standards Alliance

The Connectivity Standards Alliance is the foundation and future of the Internet of Things (IoT). Established in 2002, its wide-ranging global membership collaborates to create and evolve universal open standards for the products transforming the way we live, work, and play. With its Members’ deep and diverse expertise, robust certification programs, and a full suite of open IoT solutions the Alliance is leading the movement toward a more intuitive, imaginative, and useful world.

The Connectivity Standards Alliance Board of Directors is comprised of executives from Allegion, Amazon, Apple, ASSA ABLOY, Bosch, Comcast, Espressif, Eve by ABB, Fortune Brands, Google, Haier, Huawei, IKEA, Infineon Technologies AG, LEEDARSON, Legrand, LG Electronics, Lutron Electronics, Midea, Nordic Semiconductor, NXP Semiconductors, OPPO, Resideo Technologies, Samsung Electronics, Schneider Electric, Siemens, Signify (Philips Hue and WiZ), Silicon Labs, Somfy, STMicroelectronics, Tuya, and Verizon.

Learn more about the Alliance at www.csa-iot.org.

About Parks Associates

Parks Associates is a global research, consulting, and marketing firm with 40 years of experience delivering proprietary consumer data and industry insights for businesses. The firm produces market research reports, forecasts, surveys, and competitive business intelligence on connected consumer, small business, and commercial technologies and related business solutions. A woman-owned and woman-led company, Parks Associates is a trusted partner and advisor to executives, providing custom research, strategic consulting, and forward-looking analysis across smart home, small business, and commercial markets, including security, broadband, entertainment, energy, multifamily, smart buildings, connected health, and emerging AI-driven technologies.

Parks Associates supports industry growth through proprietary research, consulting, and executive networking and convenes thousands of leaders each year through its flagship conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.

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