Being “Cool” Not as Important as Being Useful in Smart Home Market Today

by Rachel Crippin Clark

Has the Covid-19 pandemic cut into consumer spending on smart home? Not much. But are many people looking at home technology differently? You bet.

“The pandemic has slowed new development to some degree,” says Carley Knobloch, aka Carley K, a lifestyle and technology expert based in California, USA. “At the same time, people are nesting. They’re looking to upgrade their homes and make their lives easier.”

Worldwide shipments of smart home devices increased 4.5% in 2020, according to the International Data Corporation (IDC). Top selling products included streaming sticks, smart speakers, security devices and smart lights.

“Sales of smart home devices have remained fairly resilient during the global Covid-19 pandemic,” says Adam Wright, IDC senior research analyst. “The market faced some challenges in 2020 … but nonetheless, 2020 saw positive year-over-year growth across all device categories.”

China is expected to overtake the United States as the largest smart home market by shipment volume by the end of 2024, with Canada and Western Europe also experiencing double-digit growth rates.

“While developed markets will undoubtedly lead in terms of shipment volumes, emerging markets such as India and Latin America are expected to quickly become the next battleground for companies such as Google and Amazon who currently dominate the smart home market,” says Jitesh Ubrani, research manager for IDC’s Mobile and Consumer Device Trackers. “The emergence of newer vendors, particularly tier 2 and 3 smartphone brands, will also help drive additional competition within the home.” Perhaps the more important shift has to do with how the pandemic has altered consumers’ perspectives on technology. That adds to some subtle movement that has been taking place for a few years.

We’re past the early stages of smart home where remote control of our devices was automatically considered “cool,” even though it wasn’t always helpful in our day-to-day lives, explains Carley. “That initial novelty has given way to consumer savviness—they want more,” she says.

That’s even more true during the current pandemic. “It’s now more important than ever that smart devices do something of value,” she says. Budgets are tight for many, and just about everyone is trying to simplify their lives and spend money on what matters.

And smart home devices must be user-friendly: “We don’t need extra layers of complications these days,” she adds.

What does this mean for retailers? “The more you can solve specific, deeply felt problems for your consumers, the better off you will be,” says Carley. Extra technology might not be a priority for some right now, but it may be a welcome way to upgrade life at home for others.

She advises keeping messaging simple and speaking to consumers’ current needs, which may include basics such as how to get dinner on the table quickly, how to keep their familes safe during times of civil unrest and how to keep their homes extra clean and healthy.

Continued...

Here are some trends and new product areas Carley is most excited about:

home healthcare

First off: a round of applause for any device that helps us connect with medical professionals from the safety of our own homes. Carley also likes robots that help people remember to take regular doses of their medication and sensors that can alert family outside the home if an elderly person isn’t moving around enough.

wellness

Smart devices that help maintain our home air and water quality continue to get better, says Carley. Instead of simply giving consumers the ability to manage them remotely, new versions are including sensors that can identify issues and then alert owners or adjust on their own.

kitchen and bath

Product offerings here are getting more robust and adding real value. It’s not just about a slow cooker you can turn on and off from your phone. Think in terms of a refrigerator that can track its own inventory and help you plan meals, or a bathroom mirror that can tell you when your first meeting is, and what the traffic looks like.

true wireless charging

In the not-too-distant future, many devices will be capable of true wireless charging. (No, you won’t even have to put them on top of a charging pad.) You’ll be able to charge them wherever you can connect to a Wi-Fi signal.

improved home networks

Things like Wifi6 and more broadband in more homes will affect the adoption rate of smart home technology. “It’s time for home networks to catch up” with all the smart devices out there, says Carley. |•