Today, smart home technology consists of dozens of different devices, machines, and applications. Whether it be related to appliances, lighting, usage monitors, security, or entertainment, 69% of American households own at least one smart device. But although some products and categories have higher levels of adoption, this entire industry is rapidly growing.
349 million smart devices were shipped in 2021, a number projected to reach 1.88 billion in 2025. One explanation for this growth is that smart technology has been proven to be cost effective, with products like smart thermostats able to cut costs by 10% each year. Another explanation is that smart homes offer increased home security, with 16% of consumers using smart devices for added protection and security. A final explanation is the popularity of these devices among younger generations, with 80% of millennials and Gen Z claiming that adopting smart home tech is a positive, as opposed to 69% of boomers.
One of the leaders of this growth is Tony Fadell, Founder and Former CEO of Nest Labs. He engineers smart thermostats and smoke alarms for home and business owners, helping these individuals take advantage of the aforementioned cost reduction and added security. Others like Tony promise big changes within the industry, marked by more mechanical innovations, different price/subscription models, and an acquisition rate increase. As smart devices continue to be developed, be sure to remain on top of growth and shifts within the industry.