Market research and consulting company Parks Associates has released new research on IoT smart home business models, home energy management, security, and smart lighting.[quote] According to the company’s research, more than 30 million US broadband households will have a home security system by 2019 and 51% of US broadband householders find an IoT device that alerts them to smoke and fire to be highly appealing.
Furthermore, smart light bulbs have reached 8% adoption among US broadband households, while 44% of US broadband households are concerned about hidden costs associated with energy management systems.
Stuart Sikes, president, Parks Associates, said: “IoT Innovations are driving long-term changes in consumer behaviors and business models.
“New smart home solutions and cloud services are influencing how consumers communicate and manage their households, while the potential of the IoT is bringing in new players, including the insurance industry. Insurance companies, by leveraging the capabilities of smart sensors and connected devices, can avoid risk and minimise payouts while extending value to their consumers through proactive monitoring that helps them avoid damage."
Communicating consumer benefits
In an earlier report released by Parks Associates, the firm noted that one in four broadband households in Western European countries, namely, the UK, Spain and Germany find at least one smart home device “very appealing”. [2.5m European households to have smart home controller]
The company’s research also revealed that EU households prefer systems over individual devices, thereby making interoperability a key challenge alongside building consumer awareness.
Sikes added: "The focus of connected devices must be on the benefits to consumers.
"IoT adoption is tied to the ability to solve real customer problems. Monetisation requires partnerships that make direct use of consumer data to provide a superior user experience." [The rewards of successfully monetising the IoT]
Tom Kerber, director, Research, Home Controls and Energy, Parks Associates, also commented: "Smart home solutions are monetized through a price premium delivered by differentiation, through alternative business models delivered by partnerships, or through operational efficiencies delivered by data.
"But IoT adoption is tied to solving real customer problems. Leaders in the smart home market will leverage new monetisation models to unlock value for customers."