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Smart Home Devices, Automation, Controls

Q4 2023

Industry Report

Interoperability & Generative AI: Next Generation Smart Home UI

A unified smart home experience is the holy grail of convenience and value for consumers, but fragmentation and interoperability issues plague the smart home ecosystem. This report evaluates consumer preferences for smart home control and UI, trends in interoperability and standards, such as Matter, and the expected impact of generative AI on smart home controls. It includes a 5-year forecast of the installed base of smart home devices in the United States.

Key Questions

Why will Matter and generative AI shift interface strategies for device makers and service providers?
What limits surround Matter’s ability to improve the smart home experience?
How will the emergence of generative AI affect today’s voice-driven control agents?
How can device makers differentiate using emerging user interface features?
How will broadening device suites affect service provider competition?


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Bottom line

Control and Interoperability Landscape

Progress in home control and automation

Smart home device ownership doubles in 5 years

The smart home ecosystem grows broader

Smart home inhibitors: value, privacy, interoperability

Adjacencies build supply-side momentum

Market Outlook: Controls, Data Security, Generative AI

While interface diversity will continue, user experience will improve

Matter tackles device setup and security

Matter bridges ecosystem chasms

Differentiating User Experience via Generative AI

Market Outlook: 5 Year Forecast

Market Barriers

Market Drivers

Implications & Recommendations

Put Matter on the roadmap but plan for a lengthy rollout.

Service providers must respond to Matter’s double-edged sword

Implement generative AI to add value and differentiate


Average Number of Connected Devices per US Internet Household
Home Automation Standards, X10 to Matter
Smart Home Device Ownership, 2015-2023
Opportunities and Threats of Smart Home User Experience Stakeholders
Smart Home Device Purchase Inhibitors
Matter and Generative AI: Countervailing Market Forces
Primary Control Method of Smart Home Devices
Top 3 Reasons for Smart Home Device Returns
Smart Home Products - Data Privacy and Security Concerns
Must Used Smart Home Device Control Platform
Ecosystem Integration as a Purchase Consideration for Smart Home Products
Smart Speaker or Smart Display Ownership, 2016-2023
Smart Home Devices: Perception of Affordability
US Forecast - Core Smart Home Product Unit Sales, 2019-2027
US Forecast - Core Smart home Product Revenues, 2019-2027

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