The smart home market is poised for remarkable growth over the next several years. According to Gartner, by 2020 there will be approximately 25 billion connected things in homes around the world. And with the global smart home market estimated to reach up to $43 billion, there is an enormous opportunity for device manufacturers to capitalize on this growth while it’s still in the earliest stages – well before market saturation occurs.
However, before manufacturers can move to dominate the market, consumers need to embrace the reality of smart home technology – and that’s not happening as quickly as many would like. Though excited about the idea of this new technology, many customers remain reluctant to adopt it due to a variety of factors, including concerns about privacy, perceived value and cost. Although this reluctance is expected to fade on its own with time, device manufacturers can accelerate the process and increase consumer adoption by implementing the following:
A strong value proposition
Consumers won’t adopt new smart home technology without the appropriate incentives. For example, smart appliances are undoubtedly more convenient, but people generally only replace their refrigerators, ovens and washing machines when they break – which isn’t that often. In addition, many smart home upgrades (like a smart thermostat) are appealing but not necessities, which discourages consumers from adopting them.
To overcome these barriers, IoT device manufacturers need to present strong value propositions, like cost savings, a reduction in energy bills and increased convenience. If their smart devices are optimized to save both energy and money while increasing comfort – and these benefits are adequately communicated to consumers – wide-spread adoption will follow.
Accelerated time to value
Consumers don’t exclusively consider the financial implications of a new technology. They also take into account the cost and inconvenience of installing smart home products when deciding whether or not to embrace the upgrade. To promote consumer adoption, device manufacturers should ensure that consumers can purchase the product, install it quickly and begin reaping the benefits immediately. This can be accomplished by streamlining and simplifying the installation process or offering complimentary installation to accelerate time to value.
A standards-based IoT platform for Smart Home Technology
For many consumers, new technology represents a new way for their private data to be misused or stolen. These IoT security concerns discourage them from fully embracing a smart home lifestyle. Manufacturers can overcome this barrier by implementing a standards-based IoT platform that promises end-to-end security for IoT data and the devices that generate that data. This can assure consumers that their data is authentic and comes from a trustworthy source, thus mitigating security risks and ensuring consumer safety while they derive value from their various devices.