KEY POINTS

  • Following moderate growth from 2010 to late 2012, the overall US smart home market has expanded sluggishly. The market in the US currently remains the healthiest and most promising, but it's only just beginning to enter the mass market phase of adoption.
  • There are a number of factors that could bolster consumer adoption of smart home devices in the coming years. As the population increasingly sees smart home devices as less of a luxury and more of a necessity or cost-saving tool, consumers will be more apt to purchase these devices. BI Intelligence forecasts that 73 million smart home devices will be installed in the US in 2023. 
  • But there are various barriers to mass market adoption that still need to be overcome before adoption substantially picks up. These include high device prices, technological fragmentation, long replacement cycles of existing legacy devices, and overall low consumer demand.
  • Amazon's Echo established voice as the center of the smart home ecosystem for the first time. Now, voice has become a key remote interface within the smart home — a trend that will continue to upend the connected home market as devices gain more and more skills. 

Introduction

When Amazon released the Echo in 2014, it was viewed as gimmicky by consumers. The AI-powered speaker was equipped with only a handful of skills — apps that enable the device to perform various functions and services, like streaming music or reading the news, [...]