There are several barriers to mass adoption of smart home devices. These barriers include high perceived costs, a lack of interoperability, and security issues. The good news is that these barriers are slowly disappearing. However, there’s still a long way to go before the average consumer can fully enjoy the benefits of these devices.
High perceived prices
In a recent study, Parks Associates found that high perceived prices are the primary barrier to adoption of smart home devices. Although smart home devices are increasingly popular, high product costs and confusing value propositions keep consumers from adopting them. As a result, adoption rates of smart home devices remain low. One reason for this, Parks Associates noted, is that leading smart home products are on average five times more expensive than their non-smart counterparts.
However, the costs of these devices are perceived to be more affordable than monthly service fees. Prices for devices such as the Amazon Echo are relatively low (around $50), but high-end products like the Nest Learning Thermostat and SkyBell HD video doorbell are prohibitively expensive for many consumers. A bigger barrier to mass adoption is the technological fragmentation of the smart home ecosystem. To use smart home technology effectively, consumers must purchase multiple networking devices and apps.
To achieve mass adoption, smart devices must address a specific problem and provide a novel solution. For instance, a device that eliminates blue light may be attractive to a sleep-deprived population. Moreover, smart devices designed for infant and toddler care may be appealing to parents seeking to provide a more nurturing environment for their children.
As such, industry stakeholders should address consumer concerns about privacy and security and incorporate these topics into their marketing materials. As of now, many messages about smart home technologies fail to address the genuine concerns of consumers.
Lack of interoperability
Interoperability between smart home devices is a critical issue for the industry. In addition to basic device integration, heterogeneous systems need to be able to share data and information between devices. They must also be able to overlay context and derive insights. Many smart home technologies are currently unable to achieve this. As a result, consumers will likely have trouble selecting the most appropriate smart devices and systems for their homes.
The market for connected home products and services is highly fragmented, creating both challenges and opportunities. A lack of interoperability will hinder consumer adoption and degrade the user experience. This will negatively impact the buying and selling experience for smart home products. This problem can be remedied by ensuring that all smart devices work in concert.
Smart home technology has the potential to improve connectivity, efficiency, and convenience, while promoting privacy. Yet a lack of interoperability between smart home devices creates security risks and complicates the ecosystem. As a result, the industry has proposed a standard called Matter. The goal of Matter is to help manufacturers and users achieve interoperability and device sharing.
While there are a large number of devices available for use in the smart home, there are a large number of platforms and applications for their use. This fragmentation makes it difficult for a smart home to be controlled from a single location, and requires multiple apps for each platform.
Lack of security features
A recent study found that one of the main barriers to adoption is the high price and lack of security features. In fact, most households do not own one smart home device, with 44% not intending to buy one. As a result, many manufacturers and smart home providers are working to lower prices and phase out specific premium products.
Security is one of the most fundamental requirements for a smart home ecosystem, as consumers must feel that their devices work seamlessly and protect their private data. Security flaws in the home hurt companies and dampen consumer appetite for technology. Brands must overcome this challenge through innovation and make security a priority in their products.
A recent report from Russell Interactive suggests that only 25 percent of smart home devices are being used. That number doesn’t include the people who use professionally installed security systems. The report also shows that the number of people who use smart home devices is slightly lower than the number of people who use professionally installed security systems.
Lack of consumer interest is the third biggest barrier to mass adoption. This is particularly true in developed markets, where consumers tend to question the practical benefits of smart appliances and are cautious about data security. However, in emerging markets, where the population is younger and more tech-savvy, the growth prospects for smart devices are bright.