Emerging Market Trends in Smart Security and Smart Lighting Solutions

The landscape of smart home technology is rapidly evolving, with significant strides in both smart security and smart lighting. Consumer demand for enhanced convenience, security, and energy efficiency is driving growth in these sectors.

The smart security market has rebounded, driven largely by price reductions that have spurred volume growth.​ Consumers are increasingly prioritizing safety and security. And this is propelling advancements across various home security categories. 

Key trends in smart home security include a focus on privacy and data security, preventing unauthorized access, and ensuring transparent data protocols. The integration of AI and machine learning for threat assessment and anomaly detection is becoming more prevalent. This offers real-time monitoring and updatable systems that enhance security measures. 

Market status quo 

However, the market is not without its challenges. For instance, while intruder security products saw a 22% increase in the volume of sales between January and April 2024 compared to the previous year, the overall value decreased by 3% primarily due to a drop in prices​​. Similarly, alert detectors experienced a 34% rise in volume but only a 21% increase in value. This indicates that revenue growth is tempered by competitive pricing strategies.

Growth potential through innovations in smart lighting sector

Smart lighting, although experiencing a decline in sales of traditional LED lamps, offers significant upgrade potential. The market is shifting towards smart LED lamps that provide energy savings and greater control via voice and app integrations​​. These smart LED lamps have shown a turnaround in the first quarter of 2024 following a sharp decline in 2023​. Already, some major brands in the smart lighting sector have managed to stem its earlier decline. Competitor brands also gaining traction by offering compelling price points and innovative features​​. This turnaround is additionally fueled by consumers heightened concern with sustainability and energy efficiency. According to GfK’s Netherlands Smart Home Monitor study, 48% of Dutch shoppers recognize energy-saving benefits as a primary motivator for adopting smart lighting solutions​​. Smart lighting systems contribute to reducing energy consumption. They also offer the convenience of automation and remote control. These features align with the growing consumer trend towards smart home ecosystems.

Affordability and usage convenience as possible guarantors of success

Consumer interest in smart home products remains high. A significant number of households planning to invest in smart security and lighting solutions. According to a GfK and TechUK’s connected home study 2023, one in four UK consumers intend to spend more on smart devices than they did last year​​. However, cost remains a major barrier. Many consumers citing high purchase prices as a deterrent​​. As prices become more competitive and technology more integrated into daily life, the adoption of smart home solutions is expected to rise. 

Another major barrier for consumers is the perception that the smart home is difficult to set up. Or that new devices purchased won’t be compatible with existing smart devices. The key for success in the market will be to balance affordability with advanced features and make it easy for newcomers to the category to adopt that technology. Doing so will meet evolving needs of consumers for safety, convenience, and energy efficiency. It will also break down the barriers to entry into the smart home category.

Conclusion

These trends underscore the dynamic nature of the smart home market. They highlight the potential for growth driven by consumer demand for smarter, more secure, and sustainable home environments.

Graphic Download

Source: GfK Market Intelligence, Sales Tracking Period: Jan-Apr 2024 , 2020-2023 Panelmarket. EUR Value (adj) & growth

Processing...
Thank you! Your subscription has been confirmed. You'll hear from us soon.
Der digitale Informationsdienst der gfu
Verpassen Sie keine Updates mehr
ErrorHere