The Numbers Have It - Homes Are Getting Smart
By 2023 this market is expected to reach US $137.91 billion globally according to a report by Markets and Markets, growing at a CAGR of 13.61% between 2017 and 2023.
So why the massive uptake, and who's investing in the smart home?
Smart devices on the rise
Already we're witnessing the initial stages of smart technology adoption within the home. There are smart TVs, smart fridges, automated air-con, voice activators and more.
Research firm Tesltye notes: "Australian households are in the middle of an Internet of Things (IoT) at home revolution".
More than 40 per cent of Australian households now have at least one [email protected] device, up from 29 per cent in the previous year.
Meanwhile the average household has 13.7 internet connected devices and the number is set to balloon to 30.7 by 2021, with 14 of these being an [email protected] device.
"By 2021, in total, Australian households are expected to have 311 million connected devices, of which nearly half of these are expected to be new [email protected] devices," Teslyte notes, while the [email protected] market will skyrocket from $377 million in 2016 to $4.7 billion in 2021.
Why the smart rise?
This trend is partly driven in part by the increasing affordability and proliferation of smart technology. Once expensive items like smart TVs have now become accessible, costing only slightly more than their non-connected counterparts.
Meanwhile, faster internet speeds are also behind the push. As more and more homes connect to the NBN, the speed of internet access and accessible bandwidth is allowing more devices to connect and efficiently operate. In October the NBN had been rolled out to over 6 million premises, with every Australian home due to be connected by 2020.
Inside the home, Wi-Fi is removing the need for extensive home rewiring in order to automate and program smart features like garage doors, blinds, curtains. This means smart technology is now easier to install and utilise than ever before.
A multi-generational trend
So who's driving the smart home push? In short everyone, says Real Estate Tech News. American statistics indicate millennials lead the charge, but Generation X and the Baby Boomers are by no means lagging.
Surveys conducted by Coldwell Banker indicate:
More than 1 in 4 US adults (28 per cent) have smart home products in their home
43 per cent of Americans with smart home products are millennials
33 per cent are aged 33-54
24 per cent are 55 and older
Among millennials (ages 18 to 34), almost half (47 per cent) have smart home products in their home
Parents with child under 18 living at home are almost twice as likely to have smart home products than those with no children (42 per cent v 23 per cent).
Real Estate Tech News notes they also found older generations are adopting certain types of technology faster than younger. For instance, 40 per cent of those over 65 who have smart products own a programmable thermostat, compared to only 25 per cent of millennials.
Meanwhile, IoT company Essence explains Generation X members were more attracted to products geared toward home security and energy savings, and millennials were drawn to products that provide convenience, such as home entertainment systems.
As more and more homes embrace connected devices, and the expectation they will be automated increases, the smart home is moving into a new phase of growth. No longer a futuristic concept, figures indicate its roll out is happening right here, right now in a neighbourhood like yours.