Forecast: Smart home product revenue at $12.6bn in 2027
October 18, 2023
Parks Associates’ research study, Interoperability & Generative AI: Next Generation Smart Home UI, forecasts the annual revenues from core smart home product categories will be $12.6 billion (€11.9bn) in 2027. The report highlights the current state of the smart home market and analyses current efforts, including Matter and generative AI, designed to enable a unified experience across device types.
The research shows most consumers still gravitate towards purchasing point solutions tailored to specific use cases. This prevailing trend limits the potential for integration and the realisation of whole-home experiences that truly elevate the 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, Research, Parks Associates.
Despite the competition, the potential for a more cohesive smart home experience is increasing as two significant disruptions, generative AI and the new standard Matter, impact the industry. Matter is a landmark standard introduced in 2021 by the Connectivity Standards Alliance (CSA) and aims at breaking down barriers between technology ecosystems through interoperability.
“Generative AI is poised to enhance the experience by going beyond control to deliver improved voice interactions and easy navigation of complex smart home installations,” Kent added. “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.”