The smart home market has generated quite a buzz in the United States, owing to the presence of major competitors, as well as a substantial number of connected devices. The penetration of smart devices in households in the region is 32.4% in 2020, which is expected to rise to 52.4% in 2024. Besides the U.S., Western Europe economies are also quite ahead in terms of smart home installations.
Another concept that is closely related to this area is “smart buildings”. Of course, every smart home is a smart building, but vice-versa, it is not true. Smart buildings are more focused on application of IoT for improving the efficiency of the building, reducing energy costs associated with it, having a positive environmental impact, as well as ensuring safety and maximizing employee satisfaction. For example, a smart building can save on lighting and energy costs through the use of occupancy sensors.
Smart buildings can also connect to smart grids, which would lead to optimum maintenance and energy distribution, as the electric grids and building components can ‘listen’ and ‘talk’ to each other. Additionally, smart buildings can benefit the management through the concept of ‘predictive maintenance’, wherein maintenance and failures, as well as supplies, can be managed much more efficiently.
Factors that have led to the high adoption of smart homes include:
- High proportion of internet users around the globe as well as the continued rise in smartphone penetration.
- Increased need to monitor homes from remote locations (increased security) has created healthy demand for the smart homes industry.
- Increased focus on utilizing energy-efficient solutions, as well as minimizing carbon emissions.
- Focus of market competitors on widening their smart home product portfolios.
- Entertainment systems, lighting control solutions, home system appliances, and smart speakershave witnessed huge growth in popularity in the past few years, which again increases the attractiveness of the smart homes market.
- Increase in aging population, which constitutes a significant demographic in the market, as well as rising disposable income in developed and emerging economies, are also driving the market.
However, every technology brings with it a set of problems, and this is true in case of smart homes. The major challenge for the smart homes market is security and privacy of consumers, as you would be having information about every possible functioning in the house, which other members would definitely feel as an invasion of privacy. Also, even though the technology has been there for quite some time, it is still proving to be expensive to adopt by a large number of households. Such challenges need to be tackled at the earliest.
Access Research Report of Smart Homes Market @ https://www.grandviewresearch.com/industry-analysis/smart-homes-industry
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