New report says that a lack of awareness and knowledge of smart home products and their benefits is holding back market growth but still predicts healthy revenues
“A basic light bulb is more than 20 times cheaper than its smarter counterpart,” says Olena Kaplan, Senior Analyst at Beecham Research and author of the report. “But evidence shows that consumers are willing to pay a premium price if they understand the value of the more expensive product. The crucial question is; does the smart bulb, or any smart home product, offer sufficient benefits for consumers to justify the price tag?”
The report points to the Amazon Echo smart home hub and Samsung Smart Things as a sign that major companies are trying to attract more customers and get a foothold in the home by offering entry products at affordable prices. “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,” says Kaplan. “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.”
New Partnerships and Players
Another key driver for the smart home will be new industry partnerships and routes to market, according to the Beecham Research report. For example, insurance companies will sell devices directly as part of their policies or offer discounts from retailers, while utilities companies, security providers and telecom operators also see the opportunities to partner with products companies to deliver new services and value add.
“As initiatives to encourage the adoption of smart devices proliferate, the partnerships offering specific financial advantages or benefits will show a stronger uptake,” says Kaplan. “These partnerships will also drive the shift from product to subscription or cloud-based service offerings.”
The Beecham Research report also takes a look at the global markets and levels of smart home adoption across different geographies. “For example, the US market is much more advanced than Europe and other parts of the world due to a more proactive attitude towards connected consumer devices and the popularity of safety systems,” says Kaplan. “Countries where vendors are investing in promoting smart products and raising awareness of their benefits are already seeing faster uptake.”
To find out more about the Smart Homes Market report, please visit http://www.beechamresearch.com
Beecham Research will also be publishing a second report later this month that takes a closer look at IoT security issues in smart home environment and development of smart home security market.
About Beecham Research
Beecham Research is a leading market analyst and consulting firm that has specialised in the development of the rapidly-growing M2M/IoT market worldwide for 15 years. Based in London, Cambridge (UK) and Boston, Beecham Research is recognised internationally as a thought leader with deep knowledge of market dynamics and technology at every level in the value chain including M2M/IoT services, platforms and solution security. Its clients span components and hardware, network operations, system integration, application development, distribution and enterprise adopters. The company is also the leading analyst firm in satellite M2M, where it has worked with all the network operators and the European Space Agency (ESA), and is also working actively in the wearable technology market, which is bringing the individual closer to the IoT. For more information, visit www.beechamresearch.com