Smart homes in the United Kingdom provide a high growth opportunity for Finnish tech companies related to smart city growth programs.
Nearly 30% of UK households are viable smart home targets. In 2015, 14% of the local households had some form of smart home system. This indicates there is a lot of market potential and room for growth. The smart home market in the UK alone will reach USD 6.94 billion in revenue by 2019. The compound annual growth rate for the next four years is estimated to be between 17% and 24%.
As of now, the smart home market has reached a critical mass from where it seems set to break-through to the mass-market. The US-based research company Strategy Analytics found that the number of smart home systems has increased 30% from 2014 to 4 million systems in 2015, accounting for 14% of homes in the country.
The commitments to reducing carbon dioxide emissions, made by the UK government and the European Union, and the overall increased ecological awareness, are also contributing towards smart energy systems in particular.
Currently, the smart home market in the UK is dominated by energy management solutions and Wi-Fi enabled smart home devices. Besides, the UK government has an ongoing scheme aimed to have every household in England, Wales and Scotland fitted with a smart energy meter by 2020.
In general, luxury houses and apartments are the most common types of houses to have smart home equipment, followed by hotels and other commercial buildings. Social housing and assisted homes also utilise smart home technology.
Existing housing contributes around 60% of the smart home market, while new builds add up to 40%.
91% of total UK households have internet service provider connections. Also, high consumer awareness on automation and advanced technologies related to the smart home are driving initial growth in the market. Advances and improvements in network connectivity and hence, increased bandwidth, have helped consumers to enter the smart market. The mass adoption of smart phones, tablets and wearables, is enabling consumers to connect and interact wherever they are.
Environmental technology: The likes of smart waste management, heating, ventilation and air conditioning programmable for daily activities with remote control, optimized energy usage as well as water temperature control on taps, baths and sinks.
Security: For instance, alerts delivered to resident, automatic notifying of security services, video baby monitors with breathing detection as well as carbon monoxide and water leak detectors.
Home entertainment: Such as intelligent TVs that learn preferences.
Domestic appliances: i.e., smart refrigerators, programmable ovens and robot vacuum cleaners.
Information and communication: For example, home calendars for all family members, linked to school, club and work schedules.
Health: To name a few; medication reminders, health monitoring and daily routine reminders.