Smart Home Tech Has Drawn $550 Million in Funding, but Costs Limit Adoption

file

BOSTON, MA--(Marketwired - Jan 12, 2016) - Smart homes have come a long way since emerging as a simple home energy management tool and now offer enhanced capabilities ranging from security to air quality monitoring and elderly care, but remain hobbled by high costs -- $6,700 for a fully enabled home, according to Lux Research.

The industry attracted $550 million in venture investment from 2005 to 2014, with funding spiking in 2012. A wave of sizeable exits has followed -- Google's acquisition of Nest and Dropcam, Samsung's buy of SmartThings, and Flextronics' acquisition of Wink.

"Over the past 36 months, we have seen a dramatic shift in the number and capabilities of smart home devices but hardware cost reductions have not kept pace with this scale-up," said Alex Herceg, Lux Research Analyst and the lead author of the report titled, "Smart Homes: Chasing the Elusive Dream."

"In many applications, benefits are increasingly complex to quantify, making it a challenge to communicate the value proposition to consumers," he added.

Lux Research analysts evaluated the evolution of smart homes, quantifying costs and benefits for varied technologies and applications. Among their findings:

  • Wink emerging as leading platform. Smart home platforms are still in early stages, and are working to add capabilities and partners. Wink has the most company partners overall (16) with many large companies, while Nest has the most start-up partners (18), as well as more capabilities than any of its peers.

  • Temperature control still the only "killer app". Companies offering smart thermostats form the most crowded smart home segment, offering energy savings between 12% and 30%, at a cost of $250 to $400. Whole home energy management costs more and offers only incremental gains.

  • Smart apartments near mass adoption. Smart apartments are a relative blue ocean. While costs are high at up to $900/unit, a strong service-delivery model helps amortize high hardware costs, pushing toward mass adoption. This model has the potential to be replicated for connected homes.

The report, titled "Smart Homes: Chasing the Elusive Dream," is part of the Lux Research Intelligent Buildings Intelligence service.

About Lux Research

Lux Research provides strategic advice and ongoing intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.

Contact:
Carole Jacques
Lux Research, Inc.
617-502-5314
carole.jacques@luxresearchinc.com



Powered by:

Latest Energy News - Power

Statoil has already achieved its 2015 target of reducing the CO2 emissions from the Norwegian continental shelf by 1.2 million tonnes annually from 2008 to 2020.

Statoil achieves climate target two years ahead of schedule

Statoil has already achieved its 2015 target of reducing the CO2 emissions from the Norwegian continental shelf by 1.2 million tonnes annually from...

A Japanese court ruled Friday that a utility, not the government, should pay compensation to dozens of former residents of Fukushima for losses to their livelihood caused by reactor meltdowns at a nuclear plant after a massive earthquake and tsunami in 2011.

Court: Utility, not gov't responsible for Fukushima disaster

A Japanese court ruled Friday that a utility, not the government, should pay compensation to dozens of former residents of Fukushima for losses to ...

The eye of Hurricane Maria was nearing the Turks and Caicos early Friday as Puerto Rico sought to recover from the storm's devastation.

Puerto Rico faces weeks without electricity after Maria

The eye of Hurricane Maria was nearing the Turks and Caicos early Friday as Puerto Rico sought to recover from the storm's devastation.

Cheap solar panels imported from China and other countries have led to a boom in the U.S. solar industry, where rooftop and other installations have surged 10-fold since 2011.

Solar boom or bust? Companies seek tariffs on solar imports

Cheap solar panels imported from China and other countries have led to a boom in the U.S. solar industry, where rooftop and other installations hav...

Azure Power (NYSE: AZRE), a leading independent solar power producer in India, has announced that it has commissioned the final phase of its 50 megawatt (MW) solar power plant in the state of Uttar Pradesh. The 50 MW project is spread across 300+ acres of land.

Azure Power Commissions a 50 MW NTPC Solar Project in Uttar Pradesh

Azure Power (NYSE: AZRE), a leading independent solar power producer in India, has announced that it has commissioned the final phase of its...