In brief, this article provides a detailed overview of the global smart home market and China’s growing position in adopting the smart home space.
Among the rising stars in home automation, others are trying to outpace their competition by taking advantage of IoT-powered connected solutions that remain at the top of buyers’ wish lists. Additionally, many globe-trotting experts are advocating to make the world more sustainable, with suppliers and residential complexes committed to clean energy initiatives and tracking daily energy consumption. Whether for cost savings, conservation or convenience, smart home devices are constantly gaining popularity.
Not only have smart home devices been installed in residential complexes, but retail warehouses and hospitality buildings have also leaned significantly towards similar solutions. As mainstream smart home devices rely on IoT cloud-based services, remote computing and analytics, more and more consumers have expressed their desire to use smart speakers to control electronic devices. everyday items, such as lights, thermostats, door locks, television and streaming media players. Inevitably, the global boom in the smart home market has been no secret for years. According to Emergen Research, the global smart home market is expected to reach USD 184.1 billion by 2028 and register a steady CAGR during the forecast period.
Tighten hands on energy management
The first thing that comes to mind when it comes to smart home devices is their high value information to consumers about their energy usage. These devices can be integrated with a monitoring or automation service to create additional efficiencies and peace of mind for consumers and business owners.
The global trend of smart home appliances continued to flourish, led by some global behemoths, such as Samsung, Amazon and LG Corp, explained Elizabeth Parks. She is President and Chief Marketing Officer at Parks Associates, a Texas-based market research firm that has focused on researching the emerging IoT and smart home systems market since 1986.
“It’s definitely a global trend, especially when leaning on power management. Major players are moving into the consumer tech space because of all those blurry lines that come with remote work. years,” said Parks, who has worked in the industry. for 36 years.
As a result, a wide variety of smart home devices often combine with battery backups and onsite power generation to provide real-time energy monitoring. For example, a smart thermostat can kick into energy-saving mode and revert to temperature control when connected sensors indicate a window has been opened.
“The role of energy management for the growth of the smart or connected home space is second only to convenience, safety and security as one of the main drivers for the adoption of home products. The smart thermostat is the first smart home device that was introduced and also considered a flagship device,” Parks said.
It should be noted that the smart home market boom is not limited geographically. Not only in the United States or Europe, but also in the Chinese smart home market, energy management is part of two key segments along with home automation, already reaching a combined market share of over 60% it a few years ago. In addition, the Chinese government has taken many initiatives to promote green energy consumption and IoT-powered devices. According to the China Quarterly Smart Home Device Tracker report by International Data Corporation (IDC) in the fourth quarter of 2021, the total shipment volume soared to 63.37 million units, an increase of 4.1% from one year to the next.
Specifically, 2021 was a banner year for the Chinese smart home market. Among various smart home devices, shipments of smart speakers led to a market share increase of more than 15% year-over-year. There were over 68 million households using smart home products in China. Some of the overweights include Xiaomi, Alibaba, Haier and others who have already entered the smart home market with growing demand.
Continuing the development trend of smart home devices, it is undeniable that over the next ten years, smart home markets will experience significant transformation and improvement in technologies, while being rapidly adopted in multiple scenarios. “Right now, we’re at an important point in the lifeline of the connected home space. Many of these siled ecosystems have grown. There are points of intersection where we have visions of controlling the whole home and the push for renewables,” Parks said.
Interoperability and data privacy
On a larger scale, in the smart home space, data privacy is an unspoken consensus around the world. “Data security continues to be a growing and biggest issue with more devices and complex data while embracing the trend of moving into the smart home space. We have a very fragmented market where consumers can purchase various products from different channels,” Parks explained. As his company surveyed 10,000 broadband households quarterly, Parks pointed out that 30% of consumers said they had less confidence in companies that owe their data, with the privacy concern highlighted in red.
The interoperability issue has continued to drive software companies, manufacturers, smart home device retailers and other broadband companies to improve their services around the world. For example, in addition to control and connectivity appliances providing intelligent analytics, China has considered security as the second-largest application segment. In fact, the security device segment in China is expected to grow at an annual growth rate of 15.75% from 2022 to 2026, with more than 115.5 million active users and households by 2026. Others Evidence has shown that young adults and the high-income population are two major consumer groups buying smart home security devices, accounting for 37.5% and 42.7% respectively.
With the growing demand for security devices, privacy issues are also among the top reasons that have hampered the adoption rate of smart home space. For example, Chinese multinationals such as Huawei, Tencent, and Xiaomi have all launched smart home initiatives through intelligent control. But interoperability with third-party hardware creates new insurable risks with the advent of smart home technology. To overcome this challenge, Huawei’s smart home ecosystem consists of solutions aimed at leveraging the strengths of network pipelines, massive user numbers, and commercial services in the smart home field. For example, Huawei’s LinkHome mobile app uses the NetOpen management system to integrate and enable interoperability between apps from different vendors under a unified interface.
In addition to corporate efforts, many organizations are making significant progress in uniting their members. Taking Connectivity Standards Alliance Member Group China (CMGC) as an example, its board members include some of China’s leading smart home service providers, including OPPO, Tuya, Shuncom AIoT, ORVIBO and Heiman. One of the Alliance’s projects called Matter is designed to promote and achieve interoperability of smart home devices in China by harmonizing technology standards and ecosystems. With the common goal of unifying standards promising simplicity in the smart home industry, China and other countries around the world are at the forefront of enhancing interoperability, reliability and security as the foundation of the connected home space.
The world is rushing into the smart home era with new tech gadgets being released almost every month. China is also increasingly showing its growing position by offering the world a glimpse of what is technically possible in terms of smart home devices. Along with several benefits, such as energy savings, convenience, and independent living, the smart home space lights up with security upgrades and puts future homes at the center of the world.