At the start of 2022, our smart home trends predictions included the increase in consumer adoption of smart property tech and the rise of interoperability. Customer churn and supply chain issues would likewise play key roles for insurance carriers.
With the year ending, let's look back to see if these smart home predictions withstood the test of time.
Consumer Adoption of Smart Property Tech
Our top smart home technology trends prediction for 2022 involved the proliferation of devices as people become more digital-savvy and spend more time at home. So, is the smart home industry growing?
Consumers have continued to adopt smart devices in their homes throughout 2022 as they looked to save energy and reduce spending. Smart home devices have seen increased penetration in U.S. homes in 2022. For instance, one-fifth of U.S. consumers now use smart bulbs, according to GSMA Intelligence data. The research also found 18% of homes have security cameras, and 17% now have connected thermostats. Plus, Statista research predicts 57% of U.S. consumers will adopt smart home tech by 2025, compared to just 40% in 2021.
This smart home trend is likely to continue into 2023 and beyond as homeowners look to keep a tighter lid on their finances and seek out new technology that enhances their quality of life. Indeed, the global smart home market is predicted to reach $537 billion by 2030, a 27% compound annual growth rate from 2022, according to ResearchAndMarkets.
The Rise of Interoperability
Our smart home trends 2022 predictions discussed the importance of making connected devices communicate and work together more efficiently. Interoperability is vital to minimizing the complexity of smart home systems and making properties as safe and secure as possible.
This year saw the evolution of the smart home protocol Matter, which helps devices communicate and share capabilities. However, 2022 has also seen the rise of Thread, a wireless radio protocol that enables devices to speak directly to each other. Thread creates a mesh network by making all devices an access point, eliminating the need for third-party hubs, such as devices like Amazon’s Echo. This should deliver faster responses, improved security and enhanced reliability while using less power across the smart home.
Carriers’ Customer Churn Focus
We predicted customers would seek out the best deal possible as they became increasingly digital-savvy, which would place greater pressure on insurance carriers to engage with existing customers and attract new ones.
This focus was one of the core topics we discovered at the recent Insurtech Connect (ITC) 2022 event. Speakers discussed the need for carriers to build trust throughout the policyholder experience and use data to create a better customer experience. For example, insurance carrier VYRD uses Notion’s IoT sensors to excite new policyholders and educate them on the risks of water leaks.
Carriers will need to increase their focus on engaging and delighting customers as factors like climate change cause extreme weather events that increase the risk of losses. Real-time data is crucial to understanding energy usage, reducing losses and mitigating the risk of damage.
Supply Chain Concerns
The shortage of computer chips led us to predict that supply chain concerns would continue and the price of home security tools would increase throughout 2022. The challenges involved in sourcing parts have continued into this year, but that could change as the rise of Industry 4.0 leads to more innovative supply chains. As McKinsey and Company’s tech trends outline, we’re set to see a more disruptive supply chain with technologies such as immersive reality, digital identity and quantum technologies.
These smart home trends have coincided with consumers being more willing to purchase devices if they also receive discounts on their insurance policies. The onus is on insurance carriers to work with technology providers to offer deals on IoT and insurance packages and reward homeowners who install smart tech.
What Is the Future of Smart Home?
Home automation is increasingly crucial for all property owners, helping to make their lives easier and more affordable. The growth of smart home technology is making properties more efficient and secure while reducing the risk of water leaks and fires. But the weight is increasingly on insurance carriers to encourage the use of smart home devices.
Installing smart devices and ensuring they stay online is a win-win for homeowners and insurance carriers. Homeowners gain peace of mind that their property is safe and secure, while insurance firms gain rich data that helps them reduce claims and losses.
Discover the benefits of delivering smart home programs to customers by partnering with Notion.
