Defining the Smart Home Market as presented by Parks Associates

Buzz Delano

Principal Consultant, Delano Associates

Highly respected consumer technologies research firm Parks Associates has published their guide to the smart home market.  As professional smart home integrators working sometimes with mainstream provider solutions while concentrating on these fundamentals with more sophisticated and luxury level products, services and support we must remain vigilant in our knowledge of the mainstream smart home drivers. Increasingly, younger consumers will experience smart home technology initially with mainstream solutions. Eventually they will be ready for more advanced solutions and, most importantly, a high-expectation service experience. This is where the professional smart home integrators will succeed with business growth and valuation growth in their businesses.  

Here are some high-level summary points from Parks Associates with perspective from Delano News Advance:

Parks Associates: The smart home market spans 26 major product categories with hundreds of active brands.

Delano News Advance: Are the majority of “hundreds of active brands” dedicated to the smart home professional industry or mainstream DIY and basic installation providers?

When I think back to the early 2000s when consumer technology was being fueled by the dotcom era and later at the time of analog sunset of 2009 when the spectrum was opened, the IoT market and consumer adoption and dependency upon so many smart home services is astonishing. I suppose it could be said that hundreds of active brands is both an opportunity for growth and a steppingstone to the next generation of active brands with as of now, unheard of solutions.  It may also stand to reason that the four major provider brands noted by Parks (Amazon/Ring, Google/Nest, Apple, Samsung) are obvious results of market homogenization much in the same way as phone companies consolidated from “Baby Bells” across the country to three primary communications carriers today. 

So yes, if there are indeed hundreds of active brands supporting the note 26 smart home categories, they must be explored by smart home integrator to provide dependable experiences for their customers.

Parks Associates: Smart home control comes through a variety of devices across broadband, entertainment, security, and smart home markets.

Delano News Advance: How should the smart home professional integrator leverage broadband, entertainment and security for their business and executional customer experience?

After thinking through the 26 categories and pondering a vast array of brands, how do Parks’ Four Core Characteristics of the smart home market relate?  

·       Connectivity

·       Remote Control

·       Automation

·       Integration

Delano News Advance: Are each developing in alignment to maintain a cohesive smart home experience?  I believe they must and that innovation will continue in all four with perhaps the most vital innovation being more robust connectivity and bandwidth provision.  

• Connectivity reigns supreme

  • Without it, a home is not smart

    • Smart home integrators must design, install and monitor a robust network

• Remote control allows personal mobility

  • No smart home is left behind

    • Smart home integrators must support customers at home and away 

• Automation is our sense of security

  • The alarm is on; locks are closed on schedule

    • Smart home integrators must ensure activation and schedules

• Integration is the enabler

  • Smart home devices work together

    • Job 1 for smart home integrators

      
      

As drawn from my decades of experience and the Parks Associates data point of “48% of US Internet households own a smart home device” the smart home market will continue to be essential and penetrate an increasing number of homes all day, every day.  Smart Home Professionals should be proud to be driving this and receiving the rewards of doing so. 

You can find the full article at Parks Associatres https://www.linkedin.com/pulse/what-smart-home-parksassociates-agmcc