The Home Automation Opportunity

If it seems to you like there’s strong momentum building for home automation in a wider range of new home construction, you are not alone. With new products coming on the market at a feverish pace and retailers like The Home Depot jumping into the fray with DIY options, home automation packages are well poised to make strong gains in new home construction for years to come.

According to a recent study, the market was valued at USD 3.6 billion in 2012 and is expected to reach 16.4 billion by 2019, growing at a CAGR of 24.6% from 2013 to 2019.*

This holiday season, Experian is also projecting “the growing trend in home automation, wearables and other connected devices to be an even bigger driver than last year in determining some of the season’s hottest products.”

Recent Internet searches related to home automation products have also escalated more than 14 times over the course of the last three years. According to Experian, leading the pack includes products SmartThings, WeMo, Honeywell WiFi thermostat and Philips Hue LED lights.**

Home automation momentum will not slow down, so the big question for residential construction stakeholders is how are you going to get involved?

The “Smart” Opportunity for Building Materials Companies

For product manufacturers, are you exploring ways your company can either offer a “smart” version of your product or are you looking for ways you can partner with symbiotic home automation solutions to create a companion offering?

Some partnership examples include folding door manufacturer NanaWall Systems’ partnership with CubeSensors to create NanaWellness. According to recent headlines, the system gives NanaWall customers the opportunity to use the sensors through a mobile app to understand air quality and know when it’s time to let fresh air into the home.

Another way for product manufacturers to get into the home automation game is of course through acquisition. Google’s acquisition of Nest and Samsung’s purchase of SmartThings was a bellwether moment in the home automation space. Lowe’s has a smart home system called Iris, while Home Depot has backed Wink, a product that stems from NYC design platform Quirky. And manufacturers like Schlage, Phillips and Belkin have a big focus on the space.

If your product has practical automation applications, now is the time to get your R&D department to work, before you’re left behind. The time to think about “smart insulation” for example is right now.

The Home Automation Opportunity for Residential Builders

Based on our conversations with technology suppliers and integrators, there seems to be a knowledge gap when it comes to understanding what builders want to know about home automation products and the opportunity they have to utilize the trend to leverage upgrade opportunities.

Home builders of every size are motivated to sell upgrades and additional options in the homes they construct. Since margins are slim on the “commodity” products that go into the project, builders look to upgrade opportunities as a source for making gains on the margin front.

Home automation product manufacturers, suppliers and installers have an opportunity to reach builders and offer products and services that can be incorporated into the initial homeowner sales process.

Builders are becoming increasingly more sophisticated. They are becoming better marketers. They are adopting new technologies quickly, both in how they operate their business and how they build.

Code changes also require continuous education, assessment and changes to what products are being used and how they are applied. With that, builders have a real appreciation for any means of staying on top of market trends and offering the homeowner the latest technology.

The home automation space is still considered early stage, but with incredible advances in technology and a burgeoning consumer appetite for the benefits of home automation, it’s time for building materials manufacturers and builders to understand the opportunity and get into the game.

Are you looking for innovative partnerships or compelling strategy for reaching builders? Interrupt can help you understand these types of opportunities and the best approach to reaching your goals in the home automation space. Contact us for more information or to set up a capabilities presentation.



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