Study by Dubai Investment Fund (DIF) suggests that the shift to Smart Home appliances is accelerating across homes as consumers integrate technology into their domestic lives.
As with most forms of technology, smart devices have become an integral part of our daily lives. As the world evolves, it seems that homes are becoming more equipped with smart devices for maximum convenience and security. However, is smart home technology a success in this day and age?
The historic events of this year have had a profound impact on society, the economy, and the real estate market. As a result of the Coronavirus pandemic and the subsequent quarantines, civil unrest due to inequality, and the economic recession and its aftermath, 2020 has been a year of dramatic changes. Real estate markets in the country also showed swings and changes. Volatility has changed our view of our current homes and what we look for in our next homes. Dubai Investment Fund (DIF) Research suggests that the outlook will significantly deteriorate in the upcoming quarters as a result of the emerging recession.
DIF is a global investment and consultation leader with roots in the Middle East. The firm represents thought leaders, investors, and other key figures from different segments worldwide.
According to a new study from Cinch Home Services, a majority of people are embracing smart home technology and have a positive attitude toward it. According to the survey, 77% of the 1,013 respondents welcomed the technology as it becomes more common. It’s good news, given that the smart home tech market is expected to increase 57% in five years. Cinch is a domestic home warranty coming with decades of experience in the domestic Florida market.
Another McKinsey study pointed toward how connected homes have grown substantially in the US market year over year, and this trend is expected to continue. McKinsey is a global leader in consultation and research with a focus on guiding companies through challenging periods.
Quick Adaptation of Smart Homes
According to new Parks Associates research, 36% of US broadband households own a smart home device now, up 2% from Q4 2020. With smart home technology gaining more and more ground, it becomes increasingly apparent that the future home will come complete with all the trimmings, and will include smart technology in every corner and nook.
As a result, a definitive gap will emerge between homes with these features already incorporated and those without. There’s nothing inherently wrong with the modern home not having smart technology, but there are a lot of advantages to having one. The developments in home technology are astounding, and they are improving every day, becoming stronger and more well-rounded with each passing day. As new and improved additions to the market are added every week, the sky truly is the limit when it comes to innovation and advancement in home technology. While it’s hard to predict just how far smart home technology will progress in the future, it’s clear that it provides endless opportunities for opportunities and will continue to do so.
Even though there are players from all industries who are bringing their own solutions, they are also grappling with their own problems. For this market to unlock its value, a significant amount of adoption is necessary.
Smart Growth Expected to Continue
With the progress of the pandemic, smart home sales grew as consumers sought ways to make their homes more comfortable, more secure, and more entertaining. 24% more smart home devices were purchased within the EU7 in 2020 than in the previous year.
As consumers lead closer-to-home lives, the opportunity for smart home devices will flourish – but only when operators can address consumer concerns about privacy and price.
Smart technologies provide a wealth of benefits that are relevant to everyday living while reducing carbon footprints and expenses at the same time. Besides improving quality of life, smart homes also improve safety. Consumers are utilizing smart homes for different purposes. Some of these include:
Home Entertainment
Entertainment and office spending accounted for 66.4% of the US$28 billion spent in the EU7, a 19% year-over-year increase. Those shopping for smart home products were especially motivated to purchase because they were unable to watch films outside of their homes. Consumers are becoming increasingly aware of the capabilities of smart TVs.
According to a study by Samsung, more than half of the UK population said they watched comedy shows during the pandemic to cheer themselves up, and 49% said comedy was their favorite type of program.
GFK research suggests that enforced isolation of lockdowns may have boosted the purchase of smart speakers, as people were looking for instant access to the latest news as well as enjoying having something they could converse with.
A survey conducted by GFK in 2020 found that almost 30% of UK consumers now have smart speakers – an increase of fivefold in the last four years to 38% in 2021.
Health & Wellness
The pandemic has led to another smart home device trend, where consumers feel more inclined to take control of their health, encouraging them to invest in technology to maintain optimum physical and mental health. A total of 206.4 million people worldwide used fitness or activity tracking wristwear in 2021. This behavior shift is occurring alongside the trend of wearable technology adoption and continued innovation in smart homes.
During the last 18 months, new sleep monitors, connected metabolism monitors, and socks that monitor a baby’s vital signs have been launched. As more and more products like these launch, smart home devices will move from smart to intelligent, giving consumers insight into how to make the most of the information they’re given.
Whoop and Oura, for example, are companies that track wellness. By analyzing data from wearables, recommendations – via an app – are provided about the workout the wearer should do each day based on the collected data.
DIF Healthcare Investments & Tech Ecosystems
DIF also anticipates a growing focus on digital health, mobility, and consumer-centric products. There is a need for healthcare solutions that are affordable and capable of addressing potential threats in the sector, and DIF aims to bridge the gap between demand and supply. According to a research article by DIF, as a result of the pandemic, consumer spending on their wellbeing and broader healthcare increased significantly. It is expected that self-care monitoring tools will grow at unprecedented rates in the future as consumers increasingly look to technology to provide them with viable solutions, some of which can even be connected to smart homes.
Voice Assistant Popularity on the Rise
We have yet to see many smart home products and services gain traction in the home, but DVAs have bucked this trend by becoming an increasingly relevant part of people’s lives. Juniper Research projects that voice assistant device usage will reach 275 million by 2023, an increase of 1,000 percent. Accenture’s study “Putting the Human First in the Future Home” highlights how people are starting to use voice assistant devices for productivity, communication, and entertainment in their daily routines.
The intelligent assistant is now a viable control center for the connected home thanks to advances in voice control and artificial intelligence. Tech giants and startup attackers have developed systems that deliver solutions through existing devices as well as stand-alone products. A number of companies, including Apple, Google, and Amazon, already offer AI assistants to customers who own smart homes. There are more than 50 smart home brands in Apple’s ecosystem, and Apple TV can serve as a hub for the home. Voice assistants are available from Google and Amazon that can be used to control a smart home.
According to an Accenture study, 30% of online consumers are already using smartphones and PCs with digital assistants, while 20% use standalone devices. The families who responded to this survey described buying a number of these devices and placing them in different rooms to act as intercoms or walkie-talkies. The devices are used by some as virtual sous-chef when they are cooking. In addition, some use them to control their lights, heating, and alarm systems.
Privacy & Trust Concerns Regarding Smart Homes
For consumers to be able to access these more personal spaces, they need to be confident that their data will be well protected and used responsibly. The same GFK research points out that concerns about privacy are ranked as the top barrier to voice assistant technology and smart speakers, as well as smart home appliances, smart security, and smart lighting.
In the wake of media coverage of hackers breaking into home security cameras, or smart speakers recording private conversations at home, smart home technology trends indicate brands must protect digital privacy to the fullest extent possible. They will have to be transparent about how data is collected, as well as demonstrate how their customers’ data is protected.
Companies will have to ensure that smart home devices work seamlessly together in order to provide a positive user experience, says Nevin Francis, GFK’s expert on technical consumer goods – something early adopters are already calling for. At the end of the day, it will be necessary for companies to collaborate more in order to achieve interoperability, which will result in a positive user experience and encourage mainstream adoption.
According to Accenture’s study, a company’s business strategy should go beyond data protection to ensure customers receive the best experience and to understand their needs transparently and non-intrusively. A company must be transparent about how they use customers’ data to deliver a tangible, relevant, and immediate benefit to their users if they want to be a pioneer of trust in this space.
A combination of customer tensions at home and the development of 5G technology presents an ideal situation for developing next-generation smart home products. For companies to use this power effectively, they must be aware of the way they use it, and avoid designing products without understanding what people want. Why not re-imagine items that people already use in their homes instead of creating new, gimmicky products? Instead of designing new products, how about adapting furniture, lighting, appliances, and more in order to create a generation of comfortable, practical, smart and reliable products that are tailored to people’s lifestyles and needs?
The Line Between Isolation & Connection
Users of smart home technology often find that smart devices make them feel more connected, but also more isolated. With today’s home devices, we can communicate with people anywhere in the world in real time. Using these channels, we can hear our favorite band live without physically attending a concert, or we can see places that we would never be able to visit in person. Despite this, some consider these connections to be insignificant, unable to fully replace in-person experiences, and making them feel lonelier. Nearly half of respondents in the Accenture study of Future Homes also believe that technology at home can make us lazy, since now we can do dozens of things without getting out of bed.
Looking Towards the Smart Homes of the Future
There is no single technological solution for the future home. In order to design smart-home products that will last, companies must better understand the black box of their customers’ behavior at home. The goal here is to understand customer attitudes throughout their various life stages, what the idea of home means to them, and how they behave behind the front door. DIF Research expects an acceleration in corporate adoption towards digital home products.
According to the tensions outlined above, finding value in a product is no longer enough. Providing customers with a means to rationalize tensions created by their relationship with technology is also necessary, especially around dependency, intrusiveness, and isolation. Smart-home products make people feel more connected, but the companies that will deliver real value in the future home will be those that produce connected products, which allay their customers’ concerns about feeling isolated in a technologically advanced environment while also making their homes more convenient.
As mentioned earlier, privacy concerns need to be addressed by companies that produce smart home products. There needs to be constant reassurance that consumers’ data is safe, and not being violated. Finding the right balance between innovation, convenience, and safety is the key to designing smart home products that can benefit users, and contribute to the rising trend of smart homes in the future.
Smart tech advancements aren’t expected to slow down anytime soon, and if the vast studies and research on it is any indication, people seem to welcome this evolution in many aspects of daily life.
