Smart homes are no longer a futuristic novelty. Technological advancements, infrastructure expansion, increasing wealth, and decreasing costs are bridging the supply-demand gap for such homes in the Asia-Pacific. Mega trends related to population and urbanization also fuel the smart home market in the region. As a rising population and the emergence of new cities, satellite cities, and economic zones spur construction, high-tech (smart and green) technologies will be incorporated in future buildings.
New analysis from Frost & Sullivan, Smart Homes in Asia-Pacific—A CEO’s 360-Degree Perspective, finds that the integration of several platforms from multi-dimensional applications and industries will hasten the arrival of the smart home era. Future homes will focus on eco-friendly building materials in addition to the deployment of energy-saving devices and ICT.
Major appliance manufacturers, echoing the need for energy-efficient home appliances, are investing heavily in R&D to reduce energy consumption. The continuous innovations in high energy-consuming home appliances will propel the Asia-Pacific smart home industry forward.
“As the smart home ecosystem continues to evolve, new standards and legislations will be created by both regional and local regulatory bodies,” said Frost & Sullivan Energy & Environment Research Analyst Janice Wung. “These mandates, especially from developed countries such as South Korea and Singapore, will drive the demand for smart homes.”
However, in emerging countries, the low emphasis on energy-efficiency related standards from regulatory bodies is likely to stall the construction of smart homes. The highly subsidized electricity price in these nations has reduced energy efficiency awareness among home owners, further reducing scope for adoption.
Although developed markets may provide more market opportunities, the tight intra- and inter-industry competition, especially from established international brands may not be favorable for local or smaller firms. Due to this, one of two scenarios is likely; either a consolidated industry standard will emerge or a fragmented marketplace with multiple standards will materialize.
Regulatory bodies must play an active role in stabilizing the market. For their part, market participants intending to penetrate or expand in this heterogeneous space must customize business models for the different countries that are at varying stages of legislation and economic development.
“Since the smart home ecosystem enjoys the participation of companies from various market value chains and the breadth of expertise required is vast, continuous collaboration is crucial,” urged Frost & Sullivan Research Manager Melvin Leong. “Therefore, cooperation between commercial and political bodies as well as synergies through mergers and acquisitions will be the key to success in this nascent field.”
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