Connected homes, or smart-homes as they are commonly referred to are part of a larger market segment called the Internet-of-Things, or IoT for short. The IoT is simply everyday devices being connected to the Internet and therefore becoming “smart”.
Smart homes are homes in which common everyday items such as thermostats, door locks and lighting are connected to the Internet thus allowing for interaction and control by the end-user consumer. As smart-home technology expands and price points lower, an entirely new spectrum of functional smart-home devices is entering the market and forever changing how consumers interact with their property and possessions.
There are numerous market studies on the growth of the IoT and associated smart-home devices and all of these studies point to tremendous growth that outpaces any prior technology adoption cycle including personal computers and cell phones.
The following chart from IoT Analytics presents the connected device forecasts from 6 different sources including; Cisco, Ericsson, Gartner, HIS Global Insight, ABI research and IDC. These various reputable forecasts peg the number of connected devices at between 20B and 50B by the year 2020.
Today it is estimated that there are between 6 and 14 billion autonomous connected devices. These estimates do not include smartphones, tablets or personal computers.
In general, the forecasters agree upon:
• There will be a massive increase in connected devices in the coming years
• The expected growth rates are well beyond those of most other industries (CAGR between 15-100% depending on the category)
• “Things” will clearly be the majority of all connected devices in the very near future
• In 2016, the number of connected devices that are not “things” (ie smartphones, tablets, computers, etc) is about equal to the number of connected Things
• Things are expected to outgrow smartphones and computers by a landslide
Specifically regarding smart-homes, the following chart from Statista shows estimated market penetration by popular categories:
It is noted that many of the categories with the lowest market penetration are the types of products that have loss mitigation properties such as smart water detectors and smart door locks. This represents an extreme growth area for insurance carriers to focus on when adopting a smart-home programs.
Insurance carriers that move quickly have an opportunity to get ahead of 95% of the market. A rare and exciting opportunity indeed.
For more information on initiating a smart-home program, contact email@example.com