The connected home market, initially predicted to boom, is experiencing slower growth than expected. Despite a predicted worth of $49 billion by 2020, the smart home industry faces significant challenges, including consumer concerns over privacy and security. The complexity of setting up smart home systems and the lack of interoperability between different brands also pose problems. Google’s Nest has struggled to gain traction, while Apple’s HomeKit has been criticised for its complexity.
To overcome these obstacles, tech companies are exploring partnerships with utilities firms and insurers who can offer smart home products as part of their service. Amazon’s Echo, a voice-activated home automation hub, has seen success, with sales exceeding 3 million. Its success is attributed to its simplicity and the fact that it solves a specific problem – hands-free control of the home.
Despite the challenges, the potential for smart homes remains vast. The industry could revolutionise energy consumption, security, and healthcare. However, it must first overcome the significant hurdles of consumer trust, simplicity, and interoperability.
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