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European Sustainability Report 2024

European Sustainability Report 2024

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Trends I published 15 December 2023

Smart home

The market for smart home products and installations is young, vibrant, and very broad. So much so that it can be rather hard to define. It ranges from high-end, custom-made home automation systems that control many applications for heating, lighting, security, and entertainment from an integrated central app to small off-the-shelf solutions like a single light bulb controlled through an app on your phone.

This interesting market is still in its infancy, which means there are great opportunities for manufacturers and brands that aim to produce innovative smart home products. At the same time, this young and rapidly developing market can be rather volatile and pose many challenges. Its playing field is constantly changing, for instance. The constant stream of new developments and innovations and the many new and unknown players can make it hard to stay ahead of the game.

Challenges that USP can help you overcome

We have conducted many studies to help a diversity of clients succeed in the smart home market, which can roughly be segmented into heating, lighting, security, and entertainment.

Questions they were struggling with included:

  • Who decides on smart home solutions, and who influences them?
  • Who are your competitors, and how can you stay ahead of them?
  • How are prices influenced by large online players in this market?
  • What trends influence this market, and what opportunities do they create?

Trends and influences in the smart home market

In its earliest form, this market consisted of a high-end segment of home automation systems for wealthy early adaptors, resulting in an image of being expensive and high-end. That is not the case any more, and smart home products and systems are now available in broader price ranges for a more general public. Availability to a broad public does not automatically mean broad adoption, though. The rise of smart homes has not been the revolution smart devices are often hyped to be, at least not in every segment.

The quest for sustainability and a healthy climate is a good example of larger trends influencing the smart home market. This call was answered by a vast array of smart home devices that help save energy either directly, for instance, a smart thermostat, or indirectly, like a system to automatically open or close curtains and windows to create a healthy indoor climate and replace an energy-consuming air conditioner.

Like sustainability, major trends like labour shortages or the ageing population have an influence. Installers need time to get familiar with new smart home systems. Time is often absent because schedules are full due to labour shortages. Meanwhile, since smart products are generally more easily adopted by younger generations, an ageing population of both installers and consumers makes it harder to convince them that smart home systems are worth the investment.

Read our new blog for a deeper dive into specific smart home trends expected to take hold in 2024.

How can USP help in the smart home market?

Research that USP often conducts related to smart homes is:

  1. Market exploration research
  2. Market segmentation research
  3. Product development research
  4. Customer journey research
  5. Driver analysis

Context is key

To create an overview of market developments and provide context for client-specific research, USP Marketing Consultancy has developed several monitors. We continuously research market developments and the effects of key trends like labour shortages among architects, contractors, HVAC installers, electrical installers, painters, and end-consumers, of which reports are published quarterly, semi-annually, or annually.

Fresh Insights Await

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