According to a recent study,
the market value was $40.8 billion in 2020. Predictions expect an increase to
$63.2 billion by 2025, growing at a CAGR of 9.1%.
According to the latest Home
Automation Ownership & Usage Report from NPD's Connected Intelligence, half
of U.S. consumers own at least one smart home device, up from 35% in January of
2020. While security cameras remain the most commonly owned smart home device,
NPD's Retail Tracking Service data reveals 2020's most significant sales gains
occurred in security systems (+44%), smart garage door openers (+21%), and
smart lighting (+19%).
This holiday season, Experian
is also projecting "the growing trend in home automation, wearables and
other connected devices to be an even bigger driver than last year in
determining some of the season's hottest products."
Recent Internet searches
related to home automation products have also escalated more than 14 times over
the last three years. According to Experian, Samsung SmartThings, WeMo,
Honeywell WiFi thermostat, and Phillips Hue LED lights lead the pack.
Home automation momentum will
not slow down, so the big question for residential construction stakeholders is
how you will get involved?
the "smart" opportunity for building materials companies
For product manufacturers,
are you exploring ways your company can either offer a "smart"
version of your product or are you looking for ways you can partner with
symbiotic home automation solutions to create a companion offering?
Some partnership examples
include folding door manufacturer NanaWall Systems' partnership with
CubeSensors to create NanaWellness. According to recent headlines, the system allows
NanaWall customers to use the sensors through a mobile app to understand air
quality and know when to let fresh air into the home.
Another way for product
manufacturers to get into the home automation game is, of course, through
acquisition. Google's acquisition of Nest and Samsung's purchase of SmartThings
was a bellwether moment in the home automation space. Lowe's has a smart home
system called Iris, while Home
Depot has backed Wink, a product
that stems from the NYC design platform Quirky. And manufacturers like Schlage,
Phillips, and Belkin have a big focus on the space.
If your product has practical
automation applications, now is the time to get your
R&D department to work before you're left behind. For example, the time to think about "smart insulation" is
the home automation opportunity for residential builders
Based on our conversations
with technology suppliers and integrators, there seems to be a knowledge gap
when it comes to an understanding of what builders want to know about home
automation products and the opportunity they have to utilize the trend to
leverage upgrade opportunities.
Homebuilders of every size
to sell upgrades and additional options in the homes they construct. Since margins are slim on the "commodity"
products that go into the project, builders look to upgrade opportunities as a
source for making gains on the margin front.
Home automation product
manufacturers, suppliers, and installers have an opportunity to reach builders
and offer products and services that can be incorporated into the initial
homeowner sales process.
Builders are becoming increasingly
more sophisticated. They are becoming better marketers and are adopting new
technologies quickly, both in operating their businesses and how they build.
Code changes also require
continuous education, assessment, and changes to what products are being used
and how they are applied. With that, builders have a genuine appreciation for
any means of staying on top of market trends and offering the homeowner the
Homeowners continue to look
for ways in which artificial intelligence
(AI) can transform their homes. The
home automation space is on the rise with no end in sight. It's considered to
be in the mid-stage of growth. With continued advances in technology and a
burgeoning consumer appetite for the benefits of home automation, it's prime
time for building materials manufacturers, builders, and remodelers to
understand the opportunity and get more deeply into the game.
Are you looking for
innovative partnerships or compelling strategies for reaching builders?
At Interrupt, we can help you
understand these types of opportunities and the best approach to reaching your
goals in the home automation space. Contact us for
more information or to set up a capabilities presentation.