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Connected Home Market Shows Promise

September 29, 2015

Regarding what has become known as the “connected home” -- that technological space which includes smart thermostats, remotely-accessible lighting and garage doors, and smartphone-controlled security cameras -- consumers can look forward to a lot of advancements. This is not just an area for optimism. The smart appliance market is expected to experience a compound annual growth rate of 15.4 percent, up to 37.2 billion, between 2015 and 2020.

Parks Associates research focused specifically on Western European households recently and found that around 2.5 million households in that area are expected to use a smart home controller by the year 2019. The research company noted interoperability between devices will allow sales of controllers to grow and consumers to gain satisfaction from their use.

Stuart Sikes, the president of Parks Associates, specifically mentions that aspect in the company's latest news release.

“Smart home systems will need the flexibility to deliver multiple value propositions within the household,” Sikes said. “Interoperability is necessary to achieve recurring revenue models as it enables devices to deliver a broad array of value-added services and features.”

Sikes said he believes that the challenges of making customers aware of the benefits of smart home controllers will fade. Newcomers to the market will make it their priority, he believes, to address interoperability and make customers aware of the benefits of owning a connected home.

Those companies will also face the challenges of security and consumer concern about the safety of opening up their residences to computer networks.

Machine learning has the potential to increase the security of any home by learning the patterns its users create. As just a simple example, algorithms can learn the daily schedule of when a family leaves and returns from school and work. Once the family establishes a consistent pattern, the algorithm can determine that a breach of the home at any other time is not typical and should be flagged as a risk.

Other Internet of Things (IoT) platforms, such as the Xively option from LogMeIn, will even allow manufacturers of smart home products to more easily reach consumers. Many companies can use the Xively cloud to register their products, and consumers can simply use the Xively controller to make use of all those registered applications.

Edited by Stefania Viscusi

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