9 Predictions for the Smart Home in 2017

Research firm IHS Markit has released its expectations for the smart home marketplace in the coming year.

ENGLEWOOD, Colo. – According to research firm IHS Markit, some 80 million smart home devices shipped worldwide in 2016, notching an impressive 64% increase over the previous year. Among multiple factors fueling adoption rates, rising consumer education about the smart home will drive revenue for all aspects of the market in 2017, IHS says.

In fact, a great deal of transformation is forecast in the smart home space during the next 12 months. Following are nine predictions from IHS Markit for 2017:

#1 The foundation for smart home was set in the last two years. 2017 will be a year of minor business model modifications, pricing adjustments, security enhancements (prevent cyber-attacks) and getting products and solutions out in front of the consumer because lessons from past years demonstrate consumers have been slow to go out and ask for smart home. Providers must take it to the consumer to achieve greater adoption.

#2 130 million smart home devices to be shipped worldwide in 2017, a 60% year-over-year increase.

#3 Voice assistants (personal assistants) will become more commonplace, with many additional brands hitting the market. The technology will improve to incorporate multiple users and the specific lexicons required to interact with the devices will dissolve into more natural speech.

#4 Device manufacturers and DIY platforms will place greater emphasis on real-estate and the builders market. As the technology improves, more insurance companies will adopt smart home packages.

#5 Paywalls for advanced services and features will begin to materialize, with DIY systems that were 100% free in 2016. This may include contracts to monitor appliance health and incorporate a service plan for maintenance.

#6 Service providers (telecoms) across Europe and Asia will see higher adoption rates compared with 2016.

#7 Interacting with smart home, the cars infotainment system will become commonplace.

#8 Greater emphasis will be placed on integrating appliances with open platforms, such as Wink and Amazon Alexa.

#9 Security dealers will receive a boost from professionally monitored, self-installed smart home systems. Dealers will also benefit from solutions geared toward apartment dwellers.

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