Trends in Smart Home Technology

Modern technology offers ever-increasing levels of convenience and luxury. It should be no surprise that innovators look to improve the homeowner’s experience with smart technology that revolutionizes everything from thermostat control to restocking your refrigerator. And today, smart devices and smart homes profoundly affect the housing market as more and more people expect homes to incorporate smart technology. 

Home sellers and buyers can leverage smart home technology to improve their prospects in the real estate market. While one can already see the widespread integration of smart technology nationwide, we are still only at the beginning. 

Smart Device Trends

Smart devices are integral to designing the homes of the future. In fact, 7 in 10 U.S. households now own a smart device, while 18 percent own more than two devices. Smart home tech has been rapidly adopted, as 349 million smart devices were shipped in 2021. This number is projected to hit 1.77 billion by 2025. The most common smart devices in the United States are used for entertainment, security, and usage monitors, with lighting and appliances following in popularity. Smart appliances, present in 13 percent of smart households, use data connections to enhance functionality, like refrigerators, air conditioning units, washing machines, kettles, and vacuum cleaners.

Likewise, smart lighting, present in 15 percent of smart homes, uses wi-fi integration and applications to enhance functionality. These products include smart light bulbs and lamp fixtures. Smart home thermostats and smart water meters use a data connection to send thermostat readings and monitor capabilities. These devices are present in 21 percent of smart households. Smart security systems integrate an internet connection and remote monitoring capabilities in devices like locks, cameras, and motion detectors. One-third of smart homes invest in these security options. 

Smart entertainment devices, present in 45 percent of smart households, integrate Bluetooth, wi-fi, and hands-free screen controls in devices such as smart speakers, televisions, voice-controlled displays, and connected media players. Naturally, some products have higher levels of adoption than others. Audio video devices account for 56 percent, wireless speakers account for 26 percent, and smart speakers account for 25 percent of adoption. 

How Large is the Smart Home Market

There are now more than 175 million smart homes worldwide, comprising dozens of devices, machines, and applications. The younger generations are mainly responsible for the boom in smart devices. What are Millennials and Gen Z homeowners buying to modernize their houses? According to data, their purchasing habits reveal apparent favoritism towards entertainment. In the living room, products like smart speakers, televisions, and hubs are prevalent. 

The bedroom may contain a smart smoke detector, indoor smart bulb, or window shade. Meanwhile, popular smart kitchen devices include refrigerators, dishwashers, and ovens. Bathrooms have the least smart devices compared to the rest of the house, but one may see smart mirrors, showerheads, or bidets. Outside of the house, smart garage door openers, gate locks, and sprinkler control systems are standard features. Millennial and Gen Z buyers have fallen in love with smart home technology, with a clear priority placed on entertainment devices. 

These young buyers are willing to invest in a piece of smart home ownership. In fact, 86 percent of millennials would pay for a more connected home, 63 percent of people want a smart home with smart security systems, and 46 percent want their current homes to have smart devices. Furthermore, 79 percent of millennials and 80 percent of Gen Z say adopting smart home technology is positive–compared to only 69 percent of Baby Boomers. 

Additionally, Millennials spend the most on smart home devices at $1,226 per year. However, most can agree that the cost-effectiveness and superior security of smart homes would be among the more intriguing selling points for all age groups. 

Conclusion

The smart homes market value will grow to $205.61 billion by 2026, which promises significant shifts and growth within the industry. With world-renowned geniuses working to innovate and develop new smart home technologies, one thing is clear: we are only seeing the beginnings of what will surely be a titanic industry. Advances like touchless technology, high-speed connections, greater privacy protections, and trends like subscription models and increased acquisition rates are in store for the near future. Are you ready for the homes of the future?