Smart Devices and Homes of the Future

Smart Devices and Homes of the Future: What You Need to Know

Modern technology offers ever-increasing levels of convenience and luxury.

It should be no surprise then that innovators look to improve the home owner’s experience with smart technology that revolutionizes everything from thermostat control to restocking your refrigerator.

And today, smart devices and smart homes in general demonstrate a profound effect on the housing market as more and more people expect homes to incorporate smart technology.

To see how the market for smart home devices has evolved in recent years, check out our thorough infographic on the subject.

Smart Devices and Homes of the Future: Technology of Convenience

Key Takeaways:

  • With 69% of American households owning a smart device, the real estate market will continue to adopt and leverage smart home technology.
  • Home sellers and buyers can leverage smart home technology to improve their prospects in the market.
  • While we already see widespread adoption of smart home technology, we are still only at the beginning.

Smart Devices and the Homes of the Future

7 in 10 US households now own a smart device — and 18% own two or more. And this is just the beginning.

As smart technology becomes more widely available to consumers, this number will continue to grow. In fact, according to the data it might not be long before very few homes exist without smart technology.

See our complete guide to Smart Homes

The Rapid-fire Adoption Of Smart Home Tech

Only 31% of American households don’t own a smart device, although that number is quickly shrinking. Younger generations are notoriously more desirous of convenience and new technologies.

And as these younger generations enter the housing market, we see smart home technology become more of a selling point.

In fact, 349 million smart devices were shipped in 2021, projected to hit 1.77 billion in 2025. Because of this investors and innovators look to move into these thriving product markets.

The most notable of which are the following:

Smart Appliances (13% of smart households): White good products that use data connections to enhance functionality.

  • Examples: Fridges, freezers, air conditioning units, washing machines, kettles, and vacuum cleaners

Smart Lighting (15% of smart households): Lights that use Wi-Fi integration and applications to enhance functionality and user experience.

  • Examples: Smart light bulbs and lamp fixtures

Smart Metering (21% of smart households): Devices that use a data connection to send thermostat readings and monitor consumptions and costs.

  • Examples: Smart home thermostats and smart water meters

Smart Security (33% of smart households): Security systems that integrate an internet connection and remote monitoring capabilities.

  • Examples: Locks, cameras, and motion detectors

Smart Entertainment (45% of smart households): Common entertainment devices that integrate blue tooth, wi-fi, and hands-free screen controls.

  • Examples: Smart speakers, connected TVs, voice-controlled displays, and connected media players
smart home devices

While smart devices certainly trend upwards in popularity, some products have higher levels of acquisition than others.

These are the most popular devices by adoption:

  • Audio video devices: 56% of homeowners
  • Wireless speakers (no voice assist): 26% of homeowners
  • Smart speakers (voice assist): 25% of homeowners
  • Smart smoke detectors: 17% of homeowners
  • Video doorbells: 12% of homeowners

Key Point: Because of this widespread adoption, smart homes are becoming big business. There are now more than 175 million smart homes worldwide, comprised of dozens of different devices, machines, and applications.

What Zillenials Are Buying To Modernize Their Homes

Together, Gen Z and Millenials (Zillenials) take responsibility for much of smart home adoption.

Younger generations look for new and interesting ways to integrate their favorite technologies and applications. But according to the data, their purchasing habits reveal a clear favoritism towards entertainment — a favoritism companies are eager to capitalize on.

Zillenials tend to prioritize the following smart home technology:

For the Living Room:

  • Speaker (35.6%) – Amazon’s Alexa has 40% market share
  • Television (25.7%) – Samsung controls 36% of the market
  • Hub with screen (21.5%) – Amazon Eco has 40% market share

For the Bedroom

  • Smoke detector / CO2 detector (7.6%) – Such as Nest Protect
  • Indoor smartbulb (7.3%) – Such as Philips Wiz Smart Wi-Fi LED Color Bulb
  • Window shade (2.8%) – Such as Lutron’s Serena Shades

For the Kitchen

  • Refrigerator (4.7%) – Such as the GE Profile Smart French Door Refrigerator
  • Smart Dishwasher (4.2%) – Such as the Sharp QW-NA26F39DW
  • Oven (4.2%) – Such as Candy Ovens Moderna

For the Bathroom

  • Mirror (2.0%) – Such as the Hilo Smart Mirror
  • Showerhead (1.9%) – Such as the Hai Smart Showerhead
  • Bidet (1.7%) – Such as the SmartBidet

For the Outdoors

  • Garage door opener (13.8%) – Such as the Chamberlain B4613T
  • Gate lock (3.6%) – Such as the Master Lock 4401DLH Outdoor Bluetooth Padlock
  • Sprinkler control system (3.4%) – Such as the Rachio 3

Key Point: Millennial and Gen Z buyers (Zillennials) have fallen in love with smart home tech, but at least currently this is most clearly demonstrated in their adoption of entertainment devices.

Explaining The Global Boom In Smart Home Devices

smart devices for your home
Happy woman feeling warm by coming home. Enjoying smart home remote heating control

Young buyers are clamoring for their own piece of the smart home pie, and they are willing to pay for it.

86% of millennials would pay more for a connected home.

63% of people want a smart home that owns smart security systems.

46% of homeowners want their current or future homes to have smart devices.

In other words, millennials seem to value interconnectedness more than anything. And interconnectedness is of course of one the primary offerings of smart home technologies.

Why are Younger Generations more likely to Adopt New Technologies?

While adoption of new technologies does not always follow generational trends, there is no denying that Millennials and Gen Z place higher value on technology.

But why is this?

79% of Millennials and 80% of Gen Z say adopting smart home tech is a positive — compared to 69% of Baby Boomers

94% of Gen Z values the convenience of smart home products

In other words, younger generations simply see technology as being inherently more valuable than older generations.

Key Point: Millennials spend the most on smart home tech at $1,226 per year.

Cost Effectiveness and Security of Smart Technology

Value is not the only selling point of smart home technology.

Intra-generational selling points of smart technology are its cost-effectiveness and its ability to offer superior security.

Cost Effectiveness

  • Smart water heaters can save $4,500 over 10 years
  • Smart thermostats can cut HVAC costs by 10% each year
  • Smart lightbulbs save $35 per bulb every year

Smart Home Security

  • Smart security is the third most popular device category on the market
  • 17% of consumers use smart devices to watch their homes while away
  • 16% of consumers use smart devices for added protection and security

Key Point: The cost-effectiveness and superior security of smart home technology will be among the more clear selling points for all age groups.

The 5 People You Should Know In The World Of Smart Devices

Thanks to the help of experts, developments in smart home tech are becoming faster, better, and more streamlined.

By paying attention to what the major players are up to, you will get a good feel for what the future of the market will look like.

Here are 5 influential market-makers to keep an eye on:

Marja Koopmans

  • Director of Health and Smart Home at Amazon
  • Leads global product, engineering, and growth for smart home devices

Dr. Saraju Mohanty

  • Director of Smart Electronic Systems Laboratory at University of North Texas
  • Develops smart devices for city infrastructure to improve the lives of millions

Tony Fadell

  • Founder and Former CEO of Nest Labs
  • Engineers smart thermostats and smoke alarms for home and business owners

Diane J. Cook

  • Huie-Rogers Chair Professor of Electrical Engineering & Computer Science at Washington State University
  • Researches sensors in home automation, robotic home care assistants, the habits of smart homeowners, and ambient intelligence in home automation

Jim Sutherland

  • Engineer for Westinghouse Electric
  • Invented the ECHO IV home computer, considered the first smart home device

Key Point: The smart homes market will grow to $205.61 billion by 2026 — promising major shifts and growth for the industry.

What The Future Holds For Smart Home Devices

With world renowned geniuses working to innovate and develop new smart home technologies, one thing is certain.

We are only seeing the beginnings of what will surely be a titanic industry.

But what advances can we expect to see sooner than later?

More mechanical innovations

  • Touchless technology
  • High speed connections
  • Greater privacy protections

Different prices and subscription models

  • 51% of smart home device buyers believe that prices are too high
  • 29.5% of smart home device buyers would spend $100 to $249 on a new device
  • But 32.1% of device buyers would pay a monthly smart home subscription fee

Acquisition rates increase

  • The smart device market will grow at a CAGR of 22.3% within the next 4 years
  • 51.3% of current device owners definitely want to buy another
  • Americans intend to purchase 4 new smart home devices in the next 12 months

Smart home devices are the way of the future. Are you ready for what comes next?

Sources

  • https://www.mediapost.com/publications/article/341320/smart-home-technology-hits-69-penetration-in-us.html
  • https://www.globenewswire.com/news-release/2022/08/18/2501085/0/en/The-Smart-Homes-Market-Is-Expected-To-Reach-205-Billion-By-2026-Driven-By-The-Growing-Adoption-Of-Smart-Devices-As-Per-The-Business-Research-Company-s-Smart-Homes-Global-Market-Rep.html
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