Five Smart Tech Trends You Can’t Afford to Ignore
From TVs and cell phones to cars and internet shopping, as technology infiltrates every aspect of our lives it always seems to follow a similar trajectory:
Beginning with being expensive and more of a novelty, it then finds more and more early adopters who show the manufacturers that there is demand. Then, as the innovation adapts, it becomes more mainstream, and soon after that it becomes an integral part of life.
IoT market research firm Berg Insight analyzed the smart-home technology industry and found that as many as 63 million American homes will be considered "smart" by 2024, with current numbers hovering around 25%. That’s nearly half the housing market, and the implications for builders, developers, investors, etc. are immeasurable. Many of us will have to become experts in this fast evolving field.
To help you get a headstart on the subject we've put together 5 trends that we believe will define the smart home segment in the next several years, and beyond:
Integrated Whole Home Systems
Demand will increase for smart home systems that can do it all - from security to entertainment, and from remote controls to energy savings. Today’s automated home encapsulates all mechanical systems to enhance the everyday use of the space. The possibilities are endless, from as simple as controlling the drive gate to setting a "goodnight" ambiance by pressing a single button to close shades and doors, and set lights and HVAC systems to appropriate levels. While the market for this is currently fairly fragmented, as the industry continues to grow, one thing is clear – completely integrated control systems are the way of the future. Smart home technology is always changing. As the technology progresses, users are turning to platforms that can manage it all. Instead of a new system for each automation, trust a system like Control4 to manage your entire home, from home theaters, to music, to outdoor patio shades and even appliances.
Smart Building Materials
Soon, your home will tell you when something is wrong with its structure, allowing you to take action quickly before a small problem becomes a big expensive nightmare. Imagine getting notified of a change in the structural integrity of your home's foundation or learning about a termite infestation before it spreads to your entire house. Building materials are becoming more sophisticated and soon smart building materials will be an important part of new home builds. This will serve as an early warning system, which will save time and money for many homeowners.
Improved Home Security
Security cameras and sensors are becoming more and more affordable to the point where almost anyone who wants one can get one. With their popularity however, grows the threat of cyber attacks aimed at the very systems that keeps us safe. The industry is working hard to prevent those threats, and as they're becoming more protected – trust and adaption rates grow. This technology will continue to progress to provide enhanced security for homeowners from physical threats. Smart home users will rest confident that their families and properties are safe. There will also be trends to improve the virtual security of smart home users. The industry will continue to vigilantly protect the networks that run smart homes to keep them safe from hackers and people with ill intent.
Smart Appliances + Furniture
Can you list off everything you have in your fridge? Do you know if you’re missing some key ingredients for the meal you’re planning tomorrow? Technology like smart refrigerators will allow you to look inside via your phone, or automatically add items to your shopping list based on your freezer's real-time contents. But smart furniture doesn’t just stop in the kitchen – smart beds are hitting the market that can track and improve your sleep, and adapt to your body and personal preferences. As the industry progresses, we expect your home will be connected from dog food to pillows.
Augmented Reality
AR Technology could change everything: from how we work remotely, to how we consume entertainment, to communication with loved ones, and everything in between. As popular smart home devices such as the Philips Hue digital lighting platform and Nest’s line of WIFI-enabled tools continue making their way into more living rooms, it’s not surprising to find many residents now controlling the majority of their lighting, heat and various other utilities through their smartphones. Several firms are rolling out technologies aimed to make controlling your ever-growing collection of intelligent contraptions simple by providing a one-stop destination for managing all your smart home automations in AR. Some projections have the Augmented Reality market reaching $149 billion by 2025. As AR continues to boom, we expect to see it take huge strides in the smart home market.
Below you’ll find a few more thoughts and tips on how to get your business
ready for the upcoming smart revolution:
Don’t think of it as a luxurY
For years, smart-home technology was a playground for high-end audio-visual installers and customers who could spend tens of thousands of dollars on custom features. Then came a particular smart thermostat, which brought much greater visibility to smart home tech and its potential to add comfort and convenience to everyday life.
Today, the smart home market is being driven by the basic human need to protect our family’s well-being and property, even when we can’t be home to do so ourselves. People of all demographics take pride in their homes. Builders know that better than anyone. By investing in smart-home innovation, you’ll be offering your customers more than a house. You’ll be giving them a way to protect the most important asset many of them will ever have.
Think of it as a sales tool
In 2018, the home ownership rate in the U.S. stood at nearly 65%. That’s a significant decline from its peak of 70%, which occurred during the height of subprime lending in 2005. Whether it’s because Millennials are waiting longer to invest in their first home or because would-be buyers are still scarred by the housing crisis just a decade ago, the result is a more competitive environment for home builders — which means you need to stand out from the crowd.
The best way to do that is to give your customers a way to protect their home while saving money in the long-term. The average household spends at least $1,000 annually on homeowner’s insurance. They spend an additional 1 to 2% of the value of the home every year on maintenance. Over time, smart-home technology can absorb some of this cost, and the more builders can tap into it, the better off they’ll be.
That doesn’t mean you have to fully equip the home. While luxury buyers may want a complete smart-home package, even a narrow focus on prevention can solve essential problems for prospective buyers. Smart water valves and leak sensors to prevent water damage, along with humidity sensors in the basement to prevent mold, are a great starting point. At the same time, you build a reputation as a builder who cares about your customers’ future, not just their present.
Use it to drive revenue growth
Let’s talk numbers. Spending on smart-home technology is projected by advisory firm ABI Research to surpass $120 billion by 2021. At the same time, the National Association of Home Builders and the Consumer Electronics Association found that installing smart-home technology can increase the final closing price of a home by 3 to 5%.
So, what are you waiting for?
Smart-home technology has huge potential for home builders in every market — as a brand builder, a differentiator and a revenue generator. Many of the biggest builders have already embraced this technology. In the last couple of years every project Mega Supply Pro was a part of had a smart technology component. The time to evolve is now.
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