The Impact of Smart Homes
Something labeled as disruptive causes immense amount of change. It causes a change in many different industries leading to large shifts in the way money is spent as well. The technological developments in smart homes are truly disruptive. The impact of smart homes on the U.S. is the cause of change in many kinds of industries with a massive effect on customer expenditure.
Business Not as Usual
It has been proven over the millennia. Business evolves, and those who don’t comply will go extinct. The saying remains true – adapt or die.
Change In The Marketplace
Smart devices are changing the face of the marketplace. Platforms like Amazon, eBay and Itunes have caused people to change their shopping habits. Less money is spent in retail stores. More purchases are taking place on the internet.
It is now possible to buy a pair of sunglasses on Instagram. Millions of dollars are shifting from actual retail stores to online marketplaces. Big retailers need to take note of where the marketplace is shifting towards!
Change In Real Estate
The name of the technology says it all. Smart homes are causing a change in the real estate industry – 68% of Americans think smart homes will be as common as smartphones within 10 years. This has a major effect on customers’ needs in the housing market.
81% of Americans who are looking to buy said they would prefer buying a house with smart home products already installed. A higher demand will lead to higher prices. Smart home technology will thus have an effect on the prices of houses in the years to come.
The Internet of Things
Smart homes depend on a technology called the Internet of Things (IoT). IoT basically opens up the possibility for smart devices to communicate. To explain it simpler, it helps appliances and smart devices to text one another.
You can expect IoT to drive change in consumer needs for household appliances and smart devices of like. It is estimated that the Internet of Things will drive $300 billion of revenue in the year 2020. Products and services based on this technology will be in high demand.
Smart home products (authorized by its owners) will be able to order products and services on its own accord. Unfortunately, you’ll still be responsible for the account. Appliance manufacturers and fresh goods retailers will have to cast much of their focus on the way consumers will spend their money.
Bills and Utilities
The tracking, monitor and control of appliances are easier thanks to smart home products. Gas companies are able to control the supply of gas without visiting a site. They’ll only need to install a smart product. They’ll be able to control the supply to individual homes from a computer screen. It might seem like a disadvantage to consumers, but it will increase service delivery.
Whatever You Want
Demand drives price. Customers’ needs will see a great change in time to come. Today customers are fine with an oven that is operated by hand. But the day is coming where ovens will have voice recognition technology.
Millennials Are Tomorrow’s Business
72% of Americans owning smart home products want voice control capabilities. 58% of Millennials own smart devices with voice control capabilities. Millennials are not yet the top earners of our time, but we will see significant amounts of money spent on smart home products as their disposable income increases.
It’ll be interesting to see which companies can capture the trust of these young consumers. Companies are already looking at capturing the younger generations. Their parents might the ones paying for products now, but winning their loyalty at an early age will lead to the security of sales in years to come.
The America of Tomorrow
It is forecasted that 477 million smart devices will be shipped in the year 2020. That is enough to give every American at least one. We can expect the U.S. to look much different by then. Read through the infographic to see the forecasted change smart homes will have on the U.S.