Connected Home Projections
An exhaustive search of the public domain indicates that information on the projections/trends for the connected home market for the next five years in the US is non-existent, and media coverage on the specified topic is scarce. The most relevant media mentions on the topic include that in 2023, the global smart home market is expected to be $150.6 billion and in 2021, 28% of the US households will use the smart home technology. Below are our detailed methodology and deep findings.
We began our research by looking into research reports and industry articles on the connected home industry in the US. We looked into credible sources like Forbes, Money, Market Watch, Reuters, Markets and Markets, among others. While we could find the global market value, trends of the industry, the number of households in the US who use this technology, and the forecast of these households for the next two years, we could not find the specific US value, projected cost, or trends. Next, we broadened the research criteria to include global reports with the objective of finding enough data points to help us triangulate the market share the US represents and calculate its market value. We went through industry reports such as Persistence Market and the sources we used in the first strategy. From Persistence Market website, we could find that the US is the main market for connected homes, however, none of the other sources provides enough data points to help in calculating the US market percentage or its projected growth. Fortunately, these reports provided information on the connected home market trends, including trends in energy technology like lighting and thermostat on a global scale. With this information, we decided to use global trends in our findings below because we made an assumption that these trends would apply to the US connected home market as it's the main market on the globe. However, we could not triangulate the US market value due to for data. Finally, we locates some helpful insights on the connected home market in the world and the United States from these sources: the Persistence Market and Market Watch. However, we could not access the full reports because they are behind the paywall.
HELPFUL RELEVANT FINDINGS
The connected home industry comes from the IoT (internet of things). The user uses a control hub from the digital devices that connects him/her to his/her home in order to monitor and control the home and household appliances. The connected home global market reached a market size of $42 billion in 2017. The market is divided into Smart Entertainment, Smart Appliance, Wellness and Monitoring, Security and Safety, and Energy and Utilities Management.
trends in the NEXT FIVE YEARS
In 2023, the global smart home market is expected to be $150.6 billion, while in 2020, the American market home connected robots are expected to have a market value of $11 billion. The global security home market has an annual growth of 27%. The Energy and Utilities Management segment earned a value of more than $10 billion in 2017, while Smart Appliances had value of $7 billion and is expected to grow to $36 billion in 2026.
UNITED STATES CONNECTED HOME MARKET
ENERGY NUMBER OF DEVICES
In 2017, there was 27 billion devices connected globally, and the number is expected to grow to 125 billion by 2030. Fifteen is the average number of the connected devices per person, and currently, 600 million people are using the voice control technology. In the US, the connected devices to manage energy like lightning devices and thermostats have increased in demand in the last years because of how easy they are to use them and their capacity to save costs.
TRENDS IN TYPES OF SERVICES AND TECHNOLOGIES
Home Energy and Smart TV devices are already established trends that offer low business potential in the future as the market is already saturated. Smart Gardening and EV Home charging devices are niches that offer a potential trend and are about to grow in the future. Smart Sound, Home Robots, and Smart Energy Management are the current trends that are booming and are expected to grow even more in the future. Smart Metering, Smart Toys, Smart Lighting, Smart Home Security, and Smart Home Appliances are upcoming trends.
The services and technologies that are expected to grow in 2019 and upcoming years include:
- Voice control: With more than 100 million smart speakers currently in use, the voice-activated control of smart home devices is expected to continue being one of the strongest trends as people are relying more on the ease of control and use that these smart speakers offer to control their appliances and other home technology.
- Scheduled automation: Another trend that is expected to grow in the future years is the possibility of scheduling the appliances tasks, such as the coffee makers, toasters, blinds, alarms, among others.
- Smart kitchen appliances: The kitchen market is also expected to continue with a positive trend with equipment like toasters, kitchens, ovens, processors, and more.
- Lighting at a circadian rhythm: Smart lights are one of the top markets in connected home, in the future this technology is expected to grow to use circadian rhythm to control the natural lights, dimmed lights, among others and change according to the day, night, sun, among others.
Costs related to those devices (unit cost or per home cost/projects)
Some leading devices include Amazon Echo priced at $50, SkyBell HD video doorbell priced at $199, and the Nest Learning Thermostat priced at $250. In the US, the energy smart connected home setup costs approximately $13,600 with garden technology, alarm system, security cameras, cleaning robots, thermostat, motorized window blinds, smart plugs, a video doorbell, door locks, lighting, and smart speaker. If a smart fridge is added, the customer adds another $3,000.