Today’s homes are smarter and more tech-savvy than ever before. From personal chatbot assistants to WiFi-connected washer and dryers, the spaces in which we live are becoming more responsive to our needs with every passing second. This has given rise to the industry term Smart Home, used to describe a home equipped with the latest in state-of-the-art technology and digital innovation.
It’s a sector that’s growing at an unprecedented rate, with forecasts predicting no sudden slowdown. In fact, by 2023, the smart home sector is anticipated to be valued at a staggering $150.6 billion with a compound annual growth rate (CAGR) of 26.9%. That’s a massive jump from 2017 when the market was valued at only $35.7 billion.
Factors Behind the Shift: Improved Mobility and Growing Tech Capabilities
What’s driving this change? It can be attributed to myriad factors, chief among them a growing threat of climate change, coupled with an unsteady energy market that’s leaving homeowners searching for new ways to control and power their home devices. As a result of this growing consumer interest, governments around the world are paying closer attention to these technologies and the conveniences they could afford. In addition, technological advancements around the globe are fueling this movement. Chief among them is a growing mobile network, improved wireless networking capabilities, a more robust cloud service environment, and the sophistication of energy-conserving devices that are also surprisingly high-powered.
In the past, technologies such as smart thermostats, wireless speaker systems, intuitive light switches and more used to be allocated for the very wealthy. Seen as nice-to-have but not entirely necessary additions, they were delegated to the luxury home goods space until recently. As competition among major industry leaders in this space ramps up, these items no longer carry sky-high and unaffordable price tags that require a loan to implement. Rather, they’re more accessible and achievable for the modern, forward-thinking homeowner. Leading the pack are systems that integrate voice control and artificial intelligence (AI) technology to make the most mundane tasks, like sorting laundry and turning the room fan on and off, easier and quicker to execute.
New Smart Home Innovations on the Horizon
Today’s connected home now features a veritable control centre, where all connected gadgets can be monitored and adjusted from a central data point. This makes it easier for homeowners to monitor and manage energy consumption, water usage, and more. While some products, such as the Amazon Echo are entirely new, standalone gadgets, others integrate into existing systems to reduce the need for owners to go out and buy entirely new systems.
As we continue further into 2018, industry giants continue to set the pace when it comes to smart home innovation. In January of this year, French gas distribution company GRDF Company released a rollout of smart gas meters that was the largest the world had ever seen. With Oracle technology at their core, these meters were delivered to 11 million homes throughout France, in which GRDF claims 90% of the country’s gas market. As the mechanical meters were replaced with the new automated ones, the result was a more energy efficient system that the company plans to replace all meters with by 2023.
Other impressive additions made in January 2018 include Bell’s new Whole-Home WiFi service and Mitsubishi’s autonomous smart appliance platform. Bell is Canada’s largest communications company, and under this new aim, it aims to integrate responsive whole home Wi-Fi across the country. In addition, with Mitsubishi’s new platform, homeowners can control their smart devices without the use of cloud computing or even an internet connection, making access that much simpler.
As we continue into 2018, it will be interesting to see what other smart innovations will enter the market and change up the game. In the meantime, this shift toward more sustainable, energy-efficient, high-performing house systems is a welcome one and certain to give residents around the world something to write home about.
