The smart home industry has grown tremendously over the past few years and 2018 is already shaping up to be a monumental year both in terms of innovation and adoption. But as we move through this year, what are some of the biggest trends?
The Top Smart Home Trends of the Year
When you study the data, it’s clear that smart home adoption rates are improving year over year. Total revenue in the smart home market was just shy of $12 billion in 2016, grew to $15.4 billion last year, and is expected to reach $18.88 billion this year. The expected annual growth rate from 2018 to 2022 is a robust 14.8 percent. And while household penetration is just 32 percent this year, that figure will reach 53 percent by 2022.
With so much growth happening in the industry, it’s important to pause and evaluate the trends and technologies driving these results. In 2018, here are some of the more prominent developments.
1. Smart Home Building
Aftermarket smart home renovations and additions still account for the majority of growth in the industry, but smart home building that emphasizes the use of smart technology from the ground up is becoming increasingly popular throughout the U.S.
Take Candlelight Homes as an example. Over the next couple of years, they’re planning on building more than 2,300 homes in Utah. A large percentage of these homes will be outfitted with smart systems. They aren’t the only ones, either. Home builders across the country – including on the West Coast and East Coast, in the Northeast and Southeast, and everywhere in between – are responding to escalating consumer demands by building thousands of smart homes. This represents a significant shift in the market.
2. Home Security Solutions
CES is the world’s largest electronics trade show and typically sets the tone for the remainder of the year. At this year’s event, home security was a hot topic.
“Security products will have a big showing at CES this year because they serve dual purposes,” smart home analyst Blake Kozak said prior to the event. “A security camera can alert you to when a package has arrived at the front door or when a child arrives home from school. Moreover, security cameras and video doorbells can act as a communication portal for parents, children, and family.”
Smart security solutions are what will help propel the market forward in the coming months. Whereas people may be less likely to spend on superfluous technologies, security is seen as an integral investment. This gives it an automatic advantage.
3. Voice Assistants and AI
If you’ve paid attention to the consumer electronics market over the past year, then you’re pretty familiar with the rise of voice assistants and artificial intelligence (AI). Between Apple’s Siri, Google Assistant, Microsoft’s Cortana, and Amazon’s Alexa, the marketplace is flooded with options. And now that the technology exists, it’s likely that these AI engines will be integrated into other smart home products for increased functionality.
4. Air and Water Monitoring
Another big trend at CES this year was an increase in the popularity of smart air monitors and water leak detectors. As the cost comes down on these products, they’ll likely become common in new home construction.
Smart Homes Becoming a Reality
We’re just a few years away from smart home technology being incredibly common. As the trends discussed in this article continue to develop, 2018 will prove to be a catalytic year in the push towards more intelligent and efficient homes.