The US smart home market is experiencing a significant shift, with a growing number of single-family homeowners adopting technology-enabled home services, such as smart HVAC monitoring, leak detection, and home technology support. This trend is expected to continue, with 66% of US single-family homeowners likely to adopt at least one tested smart home service, according to a study by Parks Associates.
Key Findings and Market Opportunities
• **HVAC monitoring services**: With the potential to generate more than $2 billion in annual recurring revenue, HVAC monitoring services are an attractive market opportunity. • **Fire safety monitoring services**: Similar to HVAC monitoring services, fire safety monitoring services also have the potential to generate significant revenue. • **Willingness to pay**: The majority of interested households are willing to invest $10 to $30 per month for convenient, proactive services. • **Trusted brands**: Consumers prefer trusted brands like security companies and professional contractors to deliver smart services.
Drivers of Adoption
• **Peace of mind**: Consumers expect technology to deliver peace of mind, efficiency, and expert support. • **Convenience**: Smart home services offer convenience, with features like mobile alerts and easy online scheduling. • **Security**: The security aspect of smart home services is also a major driver of adoption.
Industry Insights
The smart home industry is evolving, with a growing focus on integrated service models. Parks Associates research identifies strong willingness to pay among consumers, with the majority of interested households willing to invest $10 to $30 per month for convenient, proactive services.
| Speaker | Title |
|---|---|
| Matt Alba, Product Manager, GVTC Communications | Discussion of the future of home services |
| Greg Baldauf, Director, SmartLife & Cloud Solution Partnerships, Calix | Discussion of the future of home services |
| Jeff Bales, VP, Insurance Partnerships, Flume | Discussion of the future of home services |
| Gene LaNois, VP, Product Marketing, Vivint, an NRG company | Discussion of the future of home services |
| Dave Mayne, President, M2M Services | Discussion of the future of home services |
| Joe McNulty, SVP of Product & Partnerships, Whisker Labs | Discussion of the future of home services |
| Patrick Serrato, Director of Ecosystem Business Development and Product Strategy, Xthings | Discussion of the future of home services |
Key Takeaways
• **Smart home services are evolving**: From standalone devices to integrated service models, smart home services are becoming more sophisticated. • **Willingness to pay is high**: The majority of interested households are willing to invest $10 to $30 per month for convenient, proactive services. • **Trusted brands matter**: Consumers prefer trusted brands like security companies and professional contractors to deliver smart services.
Conclusion
The rise of smart home service subscriptions is a significant trend in the US, with a growing number of single-family homeowners adopting technology-enabled home services. As the smart home industry continues to evolve, it is essential for industry players to broaden their view of the market and capitalize on new service revenue models.
The future of smart home services is exciting, with opportunities for growth and innovation. As the market continues to evolve, it is essential for industry players to stay ahead of the curve and adapt to changing consumer needs and preferences.
About Parks Associates
Parks Associates is a woman-founded and certified business that specializes in emerging consumer technology products and services. The company provides business intelligence and research services through its proprietary methodologies developed over decades.
| About Parks Associates | Key Areas of Expertise |
|---|---|
| Parks Associates provides business intelligence and research services | Home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets. |
Contact
If you would like to schedule an interview with an analyst or request specific data, please contact Mindi Sue Sternblitz-Rubenstein at [email protected] or 972-490-1113.
