Platform integration across various industries is set to hasten the arrival of smart-home technology in the Asia Pacific, according to new research from Frost & Sullivan.
The market-research company says that a number of major appliance manufacturers are now investing heavily in R&D to reduce energy consumption, and that continuous innovations in high energy-consuming home appliances will propel the smart-home industry forwards.
“As the smart home ecosystem continues to evolve, new standards and legislations will be created by both regional and local regulatory bodies,” said Janice Wung, an energy and environment research analyst for Frost & Sullivan. “These mandates, especially from developed countries such as South Korea and Singapore, will drive the demand for smart homes.”
However, Frost & Sullivan cautions that in emerging economies the lack of emphasis on energy-efficiency-related standards could stall the construction of smart homes.
In those markets, heavily subsidized electricity costs have reduced energy awareness among homeowners, further reducing the scope for smart-home adoption.
Moreover, in developed markets, there is also a risk that competition from established international brands may crowd out local or smaller players – leading to the emergence of a consolidated industry standard or, conversely, to a fragmented marketplace featuring multiple technologies.
The company urges regulatory bodies to intervene to stabilize the market, and says that market participants will need to customize their business models for countries at varying stages of legislative 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,” said Melvin Leong, a research manager with Frost & Sullivan.
“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.”