According to a new analysis by Frost & Sullivan, 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.
Technological advancements, infrastructure expansion, increasing wealth, and decreasing costs are bridging the supply-demand gap for smart homes in the Asia-Pacific. Mega trends related to population and urbanization also fuel the smart home market in the region. With rising populations 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.
Frost & Sullivan Energy & Environment Research Analyst Janice Wung believes developed countries in the Asia-Pacific region, such as South Korea and Singapore, will introduce new standards and regulations that will drive demand for smart homes. In emerging countries, however, 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 awareness for energy efficiency among homeowners, 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.
Frost & Sullivan Research Manager Melvin Leong urges cooperation between commercial and political bodies, as the smart home ecosystem requires a vast breadth of expertise, making collaboration across market value chains crucial.