IoT Smart Home Insights from CES 2024
No longer just for tech enthusiasts, smart homes have become mainstream for the average homeowner. This surge presents a compelling opportunity for IoT companies to cater to the growing market and deliver innovative solutions.
The 2024 Consumer Electronics Show proved that Smart Home is growing in adoption with the average consumer. We’re sharing our predictions for IoT smart home products, based on CES 2024 trends.
Pepper’s IoT Smart Home Insights based on CES 2024:
Targeted Age Groups Will Take Center Stage:
In 2024, IoT products will become more personalized and accessible to the everyday living experience. CES 2024 trends showcased a remarkable shift toward smart home catering to specific age groups. Two standout categories include ‘Aging in Place’ solutions, exemplified by AARP’s visionary offerings, and a surge in products designed for children. Among the latter, a notable example was a smart toothbrush, underlining the industry’s commitment to addressing diverse consumer needs.
Collaborative Partnerships Will Define the Smart Home Ecosystem:
Collaboration took center stage at CES, with major appliance makers joining forces to create holistic smart home solutions. Amazon and Samsung showcased integrated ecosystems, presenting a seamless experience for users within their respective environments. LG, on the other hand, spotlighted partnerships addressing customer demands, particularly in areas like demand response. This collaborative approach is reshaping the smart home landscape, offering consumers comprehensive solutions.
Privacy and Security Will Become Table Stakes to Grow Customer Adoption:
The aftermath of data breaches in 2023 had repercussions on consumer brands. In fact, 72 percent of smart home product owners said they were concerned with the security of personal data collected by their devices, according to Parks Associates. This concern has been addressed by various certifications such as Matter and the U.S. Cyber Trust Mark, but consumer education around these certifications is still lacking.
In 2024, IoT companies will need to prioritize platforms that demonstrate a commitment to security and end-to-end encryption to prove to consumers that they can be trusted brands.
Choosing Solutions for Long-Term Growth:
Long-term thinking is paramount in shaping the future of IoT, with an emphasis on solutions and protocols that stand the test of time.
As IoT companies make critical decisions, the imperative to choose solutions that ‘grow with the brand’ becomes evident. The cost and complexity of switching platforms are significant, potentially creating a poor user experience. Strategic decisions must prioritize solutions and protocols that evolve alongside the brand, ensuring sustained growth and user satisfaction.
Read three common questions IoT companies ask about customer experience in our blog, 3 Ways to Unlock Exceptional Customer Experiences with Your IoT Solution.
The IoT Business Model Shift:
While the IoT market thrives, hardware margins will remain a challenge for many providers. The need for creativity in business models has never been more apparent. IoT vendors must explore innovative revenue streams such as subscriptions, add-ons, and long-term value propositions to stay competitive and have more sustainable customer lifetime values to cover ongoing costs. Adapting to changing market dynamics and providing unique value beyond hardware is essential for sustained success.
In An Evolving Smart Home Market, Differentiation and Trust Are Key
Our 2024 smart home insights show that the future holds exciting possibilities as IoT companies continue to push boundaries, collaborate, prioritize security, and adapt their business models to ensure they remain at the forefront of innovation in the ever-expanding world of smart homes.
Smart home providers are now in a unique position to tap into the growing market and provide innovative solutions that resonate with a broader audience. But to thrive, it’s critical that they differentiate their products, earn customer trust, and grow long-term value for their customers.
Pepper’s full-stack IoT PaaS helps businesses develop, manage, and monetize connected solutions. From device manufacturers to insurance carriers, Pepper partners with companies providing white-labeled solutions to break down barriers for consumer IoT and accelerate speed to market. Learn more about Pepper here.
No longer just for tech enthusiasts, smart homes have become mainstream for the average homeowner.
CES 2024, otherwise known as the 2024 Consumer Electronics Show, is right around the corner,
There’s no denying it – IoT devices are everywhere. Consumers continue turning to connected devices