2014 has been a year of incredible innovation for the connected home. With lower hardware prices, increased bandwidth availability, abundance of cloud capacity, incredible sensor miniaturization, advances in wireless standards and an abundance of mobile devices and interfaces, the foundation is being laid for the Jetsons-style vision of the home.
Here are the trends weve seen in 2014 and what we could expect in 2015.
2014 saw an explosion of Do-It-Yourself (DIY) home devices in a wide range of categories, including hub-based systems, point solutions, DIY kits and self-install traditional home security. Strategy Analytics predicts that 2014 smart home systems and services will ring up sales of $18 billion in the U.S. and could more than double to $39 billion by 2019. While some of that growth resulted in consumer confusion, these initial vendors and early adopters have certainly proven the large connected home opportunity and that consumers want more.
Most new 2014 devices fall into the point solutions category, primarily focused on one narrow set of highly related use-cases. They range in everything from thermostats, doorbells and ceiling fans to slow cookers and irrigation controllers. Crowdfunding sites like Indiegogo played a major role in helping drive funding for connected home devices and startups. Most of these offerings are standalone point solutions and generally not interoperable with other connected home devices or platforms although many aspire to be and overtly share future plans to do so.
The most popular and successful 2014 connected home products from major retailers like Best Buy and Amazon.com highlighted the most sought-after feature set: home security, safety and peace of mind. Even popular non-security home automation products deliver some level of security and peace of mind. Features such as cameras, motion detection, intrusion notification, temperature monitoring, and in-home siren are all highly desired.
In Icontrols 2014 State of the Smart Home Report, 90% of respondents stated that personal and family security is one of the most important reasons for using a connected home system. Home automation and cost savings are also important, but they are a lower priority relative to personal and family security. One could contend that end users are still learning about the value of home automation, and conversely todays home automation products do not deliver enough value and convenience.
Consumers, especially in younger generations, expect mobile apps, security cameras, and mobile notification features with their home security systems. Older generations and the non-do-it-yourselfers have a hard time with installation and maintenance of DIY connected home solutions. The combination of needs from both the young and old are creating a favorable environment for strong sustained growth in the Do-It-For-Me (DIFM) interactive security and connected home space.
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2015 connected home trends and what to expect in 2015
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