New research report by Parks Associates addresses growth in the smart home, potential impact of the Matter standard and generative AI.
Parks Associates’ new research report has unveiled a promising outlook for the smart home market, projecting an annual revenue of $12.6 billion in 2027 for core smart home product categories. The Interoperability & Generative AI: Next Generation Smart Home UI report explores this trend and the potential impact of two significant disruptors in the industry: the Matter standard and generative AI.
The prevailing consumer trend of purchasing point solutions designed for specific use cases has long been a hallmark of the smart home market. However, this preference poses challenges to the integration of various devices and the realization of a seamless, whole-home experience. Such fragmentation can be a significant hurdle for consumers seeking a unified and cohesive smart home lifestyle.
“As new brands and device categories flood the market with more options, they can exacerbate the challenges of integrating and creating a seamless smart home experience,” said Jennifer Kent, VP of Research at Parks Associates.
Two significant disruptors are poised to shape the future of the smart home market. The first is the Matter standard, introduced in 2021 by the Connectivity Standards Alliance (CSA). Matter aims to break down the barriers between various technology ecosystems, promoting interoperability and simplifying the integration of smart home devices. This standard has the potential to bring about a more cohesive and user-friendly smart home environment.
The second disruptor, generative AI, holds the promise of elevating the smart home experience to new heights. Beyond merely controlling devices, generative AI can enhance voice interactions and simplify the navigation of complex smart home setups. “By increasing the value proposition in smart home experiences, the industry adds to the current and future revenue potential in smart home and security solutions,” added Kent.
The Interoperability & Generative AI: Next Generation Smart Home UI research report also delves into consumer preferences for smart home control and user interfaces. Understanding what consumers desire in terms of ease of control and usability is crucial for industry stakeholders aiming to cater to their evolving needs.
