A recent research study by Parks Associates predicts that by 2027, the core smart home product categories will amass revenues of $12.6 billion. The study delves deep into the present smart home landscape, shedding light on innovative undertakings, with a notable focus on the Matter standard and generative AI. These endeavors aim to provide a streamlined experience across diverse device categories. And where there’s AI, there’s always going to be a display to put a face on it.
Interestingly, Parks Associates’ findings indicate that the majority of consumers are currently inclined towards buying specialized solutions meant for particular needs. Such a trend is inadvertently holding back the integration potential, preventing the evolution of a holistic smart home environment that could redefine the concept of a modern household.
Commenting on this, Jennifer Kent, the VP of Research at Parks Associates, said, “With the influx of new brands and gadget categories, the maze of integrating for an effortless smart home experience becomes more intricate. However, the horizon seems promising with transformative elements like generative AI and the groundbreaking Matter standard entering the scene.”
Introduced by the Connectivity Standards Alliance (CSA) in 2021, Matter aims to demolish the walls separating technology ecosystems, championing interoperability. On the other hand, generative AI is set to elevate the user experience, enabling enhanced voice-based interactions and simplifying the management of intricate smart home systems. Kent emphasized, “As the industry escalates the appeal of smart home experiences, it’s paving the way for a substantial uptick in current and upcoming revenue prospects in both smart home and security sectors.”