Parks Associates has released new research showing nearly 4% of U.S. households will have a smart home controller by the end of 2014, with an estimated increase to nearly 6% by 2015. The firm’s Evolution of Smart Home and the Internet of Things, which includes data from a 1Q 2014 survey of 10,000 U.S. broadband households, also reports 64% of all smart devices currently in households operate as part of a security or home controls system. Smart devices include motorized door controls, lighting controls, networked security camera, and programmable thermostats, among other devices.
The Internet of Things: Business Models & Opportunities, another Parks Associates industry report, analyzes predominant, disruptive, and innovative business models used within the smart home market. The report examines new revenue opportunities for OEMs and developers and provides business model details and case studies.
“The smart home is an emerging market with multiple channels, from service channels to retailers such as Staples and Lowe’s,” said Tom Kerber, director of research, home controls & energy for Parks Associates. “The majority of smart devices installed today were acquired as part of a security or home controls system deployed by a providers such as ADT, Comcast, or AT&T. However, consumers are starting to buy individual products such as smart programmable thermostats and smart smoke detectors in greater numbers and install them as stand-alone devices—but with the expectation that these new devices will interact with all existing and future devices in the home.”
Over one-third (34%) of smart thermostats in U.S. broadband households were purchased stand-alone, the highest percentage among all smart products tested. Honeywell leads this product category, accounting for 25% of all smart thermostats in U.S. homes. GE is the top brand for smart lighting products, but for products such as smart plugs, most consumers simply do not know the brand.
“The Internet of Things is transforming all aspects of business operations, from product management to product development, from logistics to marketing, and from sales to service,” Kerber said. “As more products enter the market, service providers and CE manufacturers in particular will need to reconcile their business strategies in order to deliver the interoperability necessary for the smart home.”
Parks Associates will bring together industry leaders and analysts to address the smart home and Internet of Things market at Smart Energy Summit: Engaging the Consumer, February 16-18, 2015, in Austin, Texas.