Smart home technologies have been developing rapidly since 2014. From Google’s US$3.2 billion acquisition of Nest at the start of 2014 to the 2015 CES earlier this year, the explosive growth in the smart home market was reflected by a proliferation of various application products. According to Topology Research Institute (TRI), a division of TrendForce, the smart home market can be further divided into these major application segments: home security, central control, home entertainment and appliances. Jimmy Liu, Internet of Things (IoT) analyst at TrendForce, said home monitoring and security solutions represent the largest (and growing) demand in the smart home market. Hot products in this segment include video surveillance systems, smart door locks and smoke detectors. Video surveillance systems in particular have the largest share within this application product market. Based on TrendForce’s forecast, the video surveillance market is set to grow at a CAGR of about 19~20% between this year and 2019, when its market size will also surpass US$40 billion.
“Traditional video surveillance systems use peer-to-peer networking and allow users to conduct real-time monitoring via their mobile devices,” said Liu. “As mainstream surveillance products enter the age of smart technologies, they will also incorporate value-added services that are cloud-based.” Features such as instant notification, playback, event analysis, facial/behavioral recognition and motion detection will gradually turn traditional video surveillance systems into more comprehensive home security solutions. Besides safeguarding one’s residence, these next-generation security systems can also act as indoor monitoring and home care service platforms.
Different sensor components, some of which are already added to video surveillance equipment, are also being introduced to other areas of home automation. There are already many sensor-based products that monitors all aspects of home environment, such as thermostats, window/door sensors and detection systems for smoke, gas and flame. Once installed, these products can work in conjunction with mobile devices, providing homeowners instant notifications. Moreover, these smart home solutions may even offer preventative and proactive security features that warn intruders and expel them from homeowners’ properties. The development trend is towards personalized home security systems that can respond to different situations in real time. Later on, these systems will be able to link up multiple smart homes and create neighborhood (or community) networks that can provide collective security and other related services to residents in given areas, thus creating additional values.
Developments in IoT technologies continue to create business opportunities in the smart home market, from home security and home care to a wide range of other services. Product developers will not only need to address issues related to safety and convenience, but they also have to make sure that these technologies reflect the core values of individual residences that adopt them. Hence, TrendForce believes that the smart home market will simultaneously support and raise values of numerous interrelated industries in the future.