With smart home technology predicted to become a $53.45 billion market by 2022, it seems one of the Forbes Technology Council’s January 2018 predictions has become a reality. “Addressing security and privacy will become a fundamental concern that will shape this industry,” wrote Dimitri Stiliadis of Aporeto.
Recent Parks Associates’ market research indicates 79% of consumers are concerned about data security or privacy issues. The firm’s consumer research finds safety and security are the leading value propositions for the smart home and 79% of U.S. broadband households are concerned about data security or privacy issues. More than a third of U.S. broadband households faced a data security problem—including identity theft, data theft, or a virus/spyware infection—in the past 12 months.
“Many consumers do not trust companies with their data, nor do they believe they receive adequate value for sharing their data,” said Lindsay Gafford, Research Analyst, Parks Associates. “Consumers will be more comfortable with connected products when security protections are built-in and companies are more transparent about how they collect and use consumer data.”
Safety and security use cases will continue to drive US smart home purchases for the near future, according to Parks Associates:
- Unit sales of smart light bulbs will exceed 10 million by 2023.
- Unit sales of smart video doorbells will exceed five million by 2023.
“Lighting is generally considered a functional use case, but the ability to turn lights on and off via voice, controller, or smartphone offers peace of mind and safety enhancements, especially for seniors and people living alone,” Gafford said. “These value propositions, combined with aesthetic enhancements from color options, mean that significant opportunity still exists in the smart lighting category.”
Parks Associates recently released new consumer and industry research that addresses lighting, video doorbells, and the impact of AI on the smart home:
- 360 Deep Dive: The Artificially Intelligent Home examines how consumers value product and service capabilities enabled by data and connectivity.
- Smart Product Market Assessment – Smart Lighting addresses future growth in the smart lighting market, including identification of the key players, consumer purchasing decisions, and user experience.
- Smart Product Market Assessment – Video Doorbells provides a comprehensive and deep analysis of the video doorbell market, including the appeal of new purchase models and incentives for purchase and a hardware-as-a-service market.
Source: Parks Associates