Nearly 30 million U.S. households are looking to add smart home technology in the near future, with demand for connected cameras, video doorbells, and energy management solutions driving the market.
New research from Parks Associates’ Smart Home Tracker: Market Sizing and Trends estimates nearly 14 million new smart home controllers will be sold in the U.S. in 2024. The tracker provides industry insights and analysis on the latest trends in the smart home space, including the need for new privacy protection and authentication measures.
“Device manufacturers are increasingly aware of the negative impact of security and privacy concerns on smart home industry growth, so major players including Google and Amazon are designing device features to restrict accessibility to consumer data,” said Patrice Samuels, Senior Analyst, Parks Associates. “Over the past few months, companies have taken measures that also demonstrate a commitment to improving consumer online privacy.”
Parks Associates research finds only 37% of U.S. broadband households trust that companies with access to their data will keep it safe.
In addition to online data security, the Smart Home Tracker also examines innovations to improve the physical security of devices.
“The development of facial and fingerprint authentication allows device manufacturers to establish a level of security stronger than voice but still convenient to the consumer,” Samuels said. “Ultimately, voice technology will develop, where unique voices can be used for biometric authentication in and of itself, but current far-field voice recognition technology is not yet up to the security challenge.”
Other highlights from Parks Associates’ Smart Home Tracker:
- The smart home industry is pouring resources into after-sales support.
- Insurance providers continue to seek inroads into the smart home space.
- Connectivity issues continue to threaten the smart home user experience.
The firm also recently announced the topics and call for papers for the 14th annual CONNECTIONS™ Summit: Smart Home Business Models and Strategies, taking place January 7, 2020, on the first day of CES® 2020 in Las Vegas. With panel discussions on the smart home, Internet of Things (IoT), energy services, connected health, and connected entertainment, the event will examine trends and implications for connected consumers and opportunities for companies to build new revenues and develop innovative business models.
Additional data from Parks Associates:
- 43% of U.S. broadband households plan to buy a smart home product in 2019.
- 35% of consumers report experiencing a data privacy or security issue in the past 12 months.
- Smart thermostats and networked cameras are the most highly adopted smart home devices.
- 25% of US broadband households plan to buy a smart video doorbell in 2019; 25% also plan to buy a smart speaker with voice assistant in 2019.
- Incidence of DIY/self-installed security systems increased by 10% over the past two years.
The event focuses on the best business strategies and key consumer value propositions for the Internet of Things (IoT), the smart home, and connected and mobile CE and services. Topics include:
- Channels: Broadband and Security Providers, Retail, Insurance
- Managing the Home Network: Wi-Fi, 5G, and Mesh Networking
- Privacy and Security: Protecting Consumers
- Installation and Support: Next Gen Home Services
- Disruption in Home Security: Smart Home Convergence
- Independent Living and Wellness: Smart Home Tech
- Energy Management Solutions: Smart Home Crossover
- Smart Home Platforms: Creating New Experiences
Source: Parks Associates