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From appliances to lighting to speakers, everything connects to the internet, and there’s no stopping the Internet Of Things (IoT). Smart home equipment is becoming more affordable and less avoidable on the market as a result. Everything from our dishwasher to our cars will be “on the grid,” i.e., connected to the internet (and many devices and appliances already are).
Smart Home vs Home Automation – What’s The Difference?
We thought we’d clear the air on this quick since these terms get tossed around pretty loosely.
A smart home product is anything that makes your home, i.e., your appliances, etc. smarter. Usually, this involves connecting them to the cloud or some software component that lets them function on their own, or based on a pattern or intelligence algorithm.
Home automation is something that smart homes can do. It involves the automation of appliances and gadgets that you otherwise would have had to operate manually. For example – setting light switches on a schedule to turn off at sunrise and on at sunset is an example of a home automation feature that makes your home smart.
2019 Smart Home Statistics
Below are some smart home facts with linked sources for each.
- 81% of smart home users said they would be more apt to purchase a home that had connected technology.1
- The U.S. is the largest consumer of smart home technology with a market volume of $23.5 billion in 2019 (followed by China with $12.9 billion and Japan with $4.19 billion).2
- Revenue in the Smart Home market amounts to US$23.5 billion in 2019 (up 15.4% from 2018).2
- 43% of smart home technology users are 18-34 years old.3
- The most popular products in 2019 are video entertainment (43%) followed by smart speakers (17.3%) and home monitoring and security (16.8%) while lighting and thermostat were lower on the list with 6.8% and 2.3% respectively. 3
- The average monthly savings from using smart home products is $98.30, which adds up to an average of $1,179.60 per year. 4
- In 2017, 80% of broadband households with 10 or more smart home devices have professionally monitored security. 5
- In 2017, 66% of broadband households have interactive services attached to their security system.5
Top Reasons Americans Use Voice Control
(note that it gets used on multiple devices, so these don’t add up to 100%):
- 57% for entertainment – Read our Streaming Media Device Comparison
- 33% for lighting – Check out our reviews of Smart Lights
- 33% for controlling of security products – Read our reviews of Home Security Systems and WiFi Security Cameras
- 33% for shopping online
- 30% for controlling thermostats – Visit our Smart Thermostats Reviews
- 29% for helping with cooking and chores
- 28% for controlling smart appliances (refrigerator, laundry machine, etc.)
5 Smart Home Market Predictions For 2020 & Beyond
There are many guesses as to what smart home market growth will reach in the next few years. During our research, we came across these predictions for the year 2020:
- Overall the smart home market is expected to grow from $76.6 billion in 2018 to $151.4 billion by 2024, at a CAGR of 12%.6
- Predictions suggest there will be 70.6 million smart home households by 2023 (nearly double from 34.8 million in 2018). 2
- Household penetration of smart homes is 33.2% in 2019 and is expected to hit 53.9% by 2023. 2
- By 2020, more than 152 million cars will connect to the internet compared to 23 million in 2014.7
- An approximate 100 million light bulbs will connect to the internet by 2020, which is up from 2.4 million in 2013.8
- In 2013 the smart home automation market was valued at 4.4 billion dollars and was estimated to be valued at 21 billion dollars in 2020.9
- 2020 estimates state the internet of things will generate revenue exceeding $300 billion.10
Learn More About Smart Homes
If you enjoyed this, you should read everything you need to know about smart homes, including how they work, what all you can control and an infographic.
What’s your favorite smart home technology?
Sources:  CNET,  statista,  Digital Media Solutions,  Dream Home Inspection,  SDM Mag via Parks Associates,  Markets and Markets,  Automotive News,  On World,  Iron Paper,  Forbes
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