From stand-alone devices to smart home systems

As the number of smart home appliances on the market increases, manufacturers and homebuilders are shifting their attention from stand-alone devices toward fully-integrated systems.

According to a 2016 survey conducted by Coldwell Banker Real Estate, 71 percent of American home buyers wanted a “move-in ready” house, with 61 percent of millennials favoring smart-tech homes.

A survey of 22,000 prospective home buyers in the U.S. by John Burns Real Estate Consulting found 65 percent of the respondents were willing to spend more for smart home technology packages.

Homebuilders have taken note and have begun using preinstalled systems to entice buyers. “Globally, about 7 percent of smart home hardware was shipped into multifamily dwellings. However, by 2022 about 16 percent is forecast to be shipped into multifamily (dwellings).

Overall, smart home technology will have a bigger impact on new construction of multifamily dwellings and will have limited impact on the sale of existing homes,” said Blake Kozak, principal analyst at IHS Markit. 

Kozak said builders were still reluctant to invest in smart home technology for single-family dwellings due to a lack of compelling data to suggest a return on the high investment costs, as well as a struggle identify which platforms could be easily controlled and transferred from homeowners to buyers.

Companies including Comcast, Vivint Smart Home, Alarm.com and SK Telecom are also investing in the multifamily market.

“As platforms evolve and are tailored specific to multifamily use cases, this could create a big growth demand,” said Kozak.

Kozak thinks smart displays could also reduce the reliance on smartphones for home control, adding that this had been a barrier to the widespread adoption of smart home technology in the past.

Brilliant is a control device that combines a touchscreen with a physical light switch. It supports several smart home platforms and products including Amazon Alexa, Apple HomeKit, Samsung SmartThings and Nest.

“In the consumer space, smart home devices are often controlled using mobile apps. This works well for remote control and monitoring, but it
provides a poor experience within the home,” said Aaron Emigh, the CEO of Brilliant.

Devices like Brilliant eliminate the need for a homeowner’s smartphone to control smart devices, useful for guests or children.

Built-in devices also allow homeowners to control smart devices directly, eliminating cords and clutter. “Control capabilities should be a part of the home itself; a true smart home rather than a regular home full of smart clutter,” said Emigh.