Security, peace of mind driving Internet of Things

(Denys Prykhodov/shutterstock.com)

(Denys Prykhodov/shutterstock.com)

Relaxnews

, Last Updated: 7:03 AM ET

Despite the hype, it's very early days for the Internet of Things. Only 4% of US homes are expected to have a smart home controller by the end of the year

According to a new report from Parks Associates based on a study of 10,000 US homes with a broadband internet connection, it's security and peace of mind that is driving initial interest in America. Nearly two thirds (64%) of all smart devices currently installed in households in the country operate as part of a security or home controls system.

"The smart home is an emerging market with multiple channels, from service channels to retailers such as Staples and Lowe's," said Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates. "The majority of smart devices installed today were acquired as part of a security or home controls system deployed by providers such as ADT, Comcast, or AT&T. However, consumers are starting to buy individual products such as smart programmable thermostats and smart smoke detectors in greater numbers and install them as stand-alone devices -- but with the expectation that these new devices will interact with all existing and future devices in the home."

And although consumers are only now starting to understand the benefits of smart devices, interest in individual gadgets rather than overarching systems is what is expected to drive the market over the coming years. Parks Associates estimates that by the end of 2015, 6% of US homes will have started to embrace the Internet of Things via an individual device purchase.

This is already starting to happen with devices aimed at simplifying a home operation process while also saving a household in terms of bills. Over one third of smart thermostats currently installed in US homes were bought as individual, standalone purchases.

In June, Parks Associates conducted a study in the US and Europe to understand how consumers felt about the current crop of IoT gadgets and which ones were the most appealing. It found that 43% of US broadband homes were already willing to invest in a smart home package that offered home management, safety and security features while in France, the UK, Germany and Belgium, consumers were starting to value smart safety and security devices such as smoke alarms and motion detectors.

Fellow research and analytics firm IDC values the global market for the Internet of Things to be worth just $1.9 trillion but is very positive about the future, forecasting that the industry will grow to be worth $7.1 trillion by the end of this decade.


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