Smart home technology is disruptive. It is causing widespread change. It is changing the way people live in their homes. But, that isn’t the only thing that is being changed.
A smart home is a network of smart devices owned by a user. These devices make use of wireless connections to connect to the internet and other smart devices.
Smart home technology has been around for a while now. The first functional concepts were developed in 1967. Though, they were never sold to the public. But, how does it affect the world? Here are a few industries and the change it is experiencing because of smart homes.
Smart security products are among the top used smart home devices on the market. Smart locks, smart CCTV, smart smoke sensors and alarms. The list seems endless. According to a study done by SafeAtLast, 62% of Americans claim better home security is the top benefit that comes with owning smart home devices. Analysts now believe that smart security will take up 47% of the $100 billion security industry by the year 2020. Security companies need to drastically rethink their company strategies. They need to find ways to capture the smart security market.
The real estate game has always been controlled by location. Properties on the best locations enjoy the best prices. But, smart home technology may soon also have an effect on property prices.
68% of Americans think smart homes will be as common as smartphones within the next 10 years. 81% of prospective home buyers say they would rather buy houses with smart home products already installed. The need for smart home products is increasing. Demand drives prices higher. Real estate with smart home technology will receive better offers because of higher demand.
Smart home products connect to the internet. This is called the Internet of Things (IoT). Some smart home products are already able to place orders for goods like groceries. IoT has the ability to generate sales. Analysts believe that the IoT industry will cause more than $300 billion of revenue in the year 2020. Companies from all sectors of industry need to look into sales through IoT. It may be their next big pay off.
Here is an interesting stat. The U.S. has already generated $19.827 billion of revenue in the smart home industry in 2018. Analysts estimate that about 477 million smart home products will be shipped in the year 2020. Now imagine the revenues it will generate.
Appliance manufacturing companies need to look into smart home products. This industry is showing growth. Those who won’t catch on will miss the bus (and the paycheck).
The exact effect of smart homes on the world can't be quantified yet. Only time will tell. But, it is evident that this technology is already disruptive. And it doesn’t show any signs of stopping soon.