We’ve all seen how the COVID-19 pandemic changed the way people think about their homes. This was exemplified during the home improvement boom when homeowners realized they needed more functionality out of their space.
Homeowners are increasingly desiring a smarter, easier way of living with more connectivity and control from mobile devices. We’ve seen this play out in the smart home device sector as ownership grew to 43% of U.S. households in 2021.
Convenience and control are not the only factors shaping home improvement industries. Millennials, the nation’s largest living adult generation, are major influencers in the home buyer market, and their values are moving the needle. With this in mind, here are three trends driving the future of the smart home and home security industry.
A Shift in how Consumers Think about Home Security, and the Role of the Professional Integrator
One of the strong preferences for millennials is a home that promotes comfort and overall wellness, according to a recent survey by COGNITIONS Smart Data conducted for Green Builder Media. And they view smart home technology – which includes leak detectors, air quality monitors, home security cameras and voice-controlled appliances – as a critical element to enhance a home’s overall wellness.
By and large, consumers’ sentiment seems to have improved as they search for wellness and convenience, and more specifically networked cameras in the home. For example, recent research from Parks Associates found that the average U.S. broadband-enabled home now has 3.4 networked cameras, a drastic increase from 2018. In fact, analysts predict even more of a jump, with a 15.7% compound annual growth rate (CAGR) for smart home security cameras through 2027 globally.
With increased awareness and consideration of cameras overall, there comes an opportunity for professional security dealers to demonstrate a better way to integrate cameras and other safety solutions via a professionally installed and monitored system. This is where dealers’ expertise can truly shine: pointing out the increased advantages of integrating cameras with other air/water/energy sensors and features for a connected system designed to deliver a comfortable and secure home.
Touchscreens, Camera Sensor Technology Driving Industry Forward
Homeowner’s expectations and willingness to invest are rising; with approximately 250 million networked cameras, video doorbells, and smart speakers/smart displays to be sold in the U.S. between 2022 and 2024. Given the increased interest, the two most important technologies that will have the greatest impact on the market are the development of display technologies (i.e., mobile apps, touchscreen interfaces, etc.) and cameras.
Touchscreen panels are advancing well, with image quality becoming crisper, and touch response becoming more intuitive. But it’s important to create experiences and journeys that take advantage of those display capabilities – and do it in a way that helps both security dealers and customers.
We are just beginning to take advantage of cameras as an industry. Cameras are the ideal sensor and there is more data richness that we can use to help our customers. They are becoming synonymous with security in homeowners’ minds and there is an opportunity for new development and for market expansion across security, safety and the entire smart home.
New Trend: Sustainable Home + Solutions
A number of factors are driving this last trend, including, most notably, the added convenience and cost savings from reduced energy use.
Millennials are the biggest players now in the housing market. They are spending more on new homes than any other generation, and most millennials (90%) are trying to reduce their impact on the environment by making at least some efforts towards living a more sustainable life. In the long term, millennials rank improving their homes to make them more sustainable as one of their top actions.
The CSA’s Matter specification is also top of mind as we think about future designs and we help simplify the smart home – both standardizing the setup of devices and the ongoing operation by the homeowner. For example, the standard can create some exciting use cases with integrating various sensors and applying video analytics and services to help what matters most. For example, would you cool the house during a warm weather emergency if a window was left open, and the system knew you were away?
The last two years have driven home the importance of wellness from individual to environmental levels, and it gains top scores among America’s biggest generation of potential homebuyers and technology adopters. These trends show us that expectations for smart home devices also serve as a supplemental tool for greater sustainability, personal wellness, and a better home for the people, pets and things we hold dear.
As the smart home and security industry matures, driving new value to consumers through the addition of innovative features and useful services, we’re excited to see what’s in store for the future of home security and the connected home, and how providers aim to meet ever-growing expectations from their customer base.