SYS-CON MEDIA Authors: Elizabeth White, Liz McMillan, Xenia von Wedel, Peter Silva, Glenn Rossman

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From Maker Movement to Google’s Nest Acquisition – DIY is Re-defining the Smart Home Market, Says ABI Research

A new generation of smart-looking as well as connected smart home products is drawing a growing swathe of consumers into smart home device spending. Shipments of these devices will grow at a close to 30% CAGR between 2013 and 2019, however their impact will extend far beyond individual device sales, according to ABI Research.

DIY is one of the stalwart segments of the smart home automation market. There have long been home automation enthusiasts with the technical ability and enthusiasm to build out home systems themselves; however, increasingly, devices like Nest’s Smart thermostats and Dropcam’s streaming video cameras are bringing simple-to-install, smart–home-DIY to a far wider audience.

The popularity of these devices, that can be accessed and controlled by smartphone apps as well as the web, helps spawn wider evolution in the home automation market. “Single application, connected smart home devices will not only drive connectivity into a wealth of everyday home appliances from air conditioning units to coffee machines, they will also provide a new battleground for new and existing smart home automation players,” says Jonathan Collins, principal analyst at ABI Research. “Existing players and start-ups alike are preparing their strategies to leverage the popularity of these devices into their own holistic smart home automation plays.”

Google’s $3.2 billion acquisition of Nest, and iControl's move to acquire the company behind the Piper smart home device underline the value and importance of consumer devices within broader smart home systems.

Start-ups like Revolv and WigWag are looking to provide ways to control multiple smart home devices into a single automation platform – replacing multiple apps with control from their own. Both have developed home gateway devices to drive this but increasingly cloud connectivity options will also compete. Additional competition will come from managed offerings from telcos, security players, retailers and others as well as established home automation specialists such as Control4.

A new ABI Research report, “Market Evolution in DIY Smart Home Automation”, assesses the potential for DIY smart home devices and the new wave of growth and competition their adoption will bring. It is part of the Smart Home Market Research (https://www.abiresearch.com/market-research/service/home-automation-and-smart-buildings/).

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

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