Just as we have seen with the smart phone revolution, the battle for the smart home looks like it will be just as hotly contested, as there is no denying that consumers today are embracing the smart home concept.
Studies are popping up weekly confirming that demand is increasing for smart home products and services as homeowners learn more about smart home and home automation technology available today.
The latest research, from market research firm Berg Insight out of Gothenburg, Sweden, shows that North America is leading the global smart home market with 12.7 million smart homes in 2015, a 56 percent year-on-year growth. According to the research, the strong market growth is expected to last for years to come, driving the number of smart homes in North America to 46.2 million by 2020, which corresponds to 35 percent of all households.
The study found that the most successful products in the smart home market include smart thermostats, security systems, smart lighting, network cameras, and multi-room audio systems.
“There is no doubt that regular consumers in the future will own and operate a wide range of connected objects in their homes, from connected home appliances and luminaires to thermostats and security devices,” said Johan Svanberg, senior analyst, Berg Insight. “Attractive use cases, interoperable devices, and well-implemented user interfaces are needed in order to accelerate the market.”
Although Amazon Echo’s Alexa is leading the smart home charge right now, Apple is making a serious play with its announcement at its Worldwide Developers Conference last week of its new app called Home, which will be a hub on the iPhone for all the connected devices in the home. The app is the logical next step for Apple’s HomeKit platform, and both work with Siri, who is getting some improvements and upgrades as well.
Apple also announced that it is working with homebuilders—Brookfield Residential, Lennar and KB Home—to build homes later this year that come with built-in Apple HomeKit infrastructure.
Other major players in this battle for the voice-driven smart home include Microsoft with its Cortana voice platform, and Google Home’s Assistant, which was announced in May. Rumors abound that both Microsoft and Google, like Apple, are gearing up for a serious play for a piece of the smart home market.
Apple’s brand equity with consumers, though, shouldn’t be ignored, as it is not a big leap to think that consumers would be willing to take the plunge into the smart home market with Apple, a company they know will be able to provide a complete, somewhat air-tight system from the ground up, so to speak.
One negative for Apple is its seemingly late entry into the smart home space, where many early adopters are already using many smart home products that will not work with Apple’s HomeKit platform, which requires using a special encryption chip. Some HomeKit-certified products are currently available from companies like Honeywell, August and Phillips Hue, and Apple said that there are close to 100 more compatible products coming this year.
Stay tuned, because things are starting to get interesting in the smart home space.