Global Smart Home Enters Ideal Condition Emphasises on Artificial Intelligence

With the rise of the Internet of Things and the gradual maturity of AI technology, smart homes have experienced explosive development after a period of precipitation and accumulation. The huge market prospect of smart homes has been placed in front of the industry. According to a report issued by an authoritative organization, the global smart home equipment and services market will reach US$68 billion in 2018.

In 1984, the United States transformed its first intelligent building. From 1985 to 1988, intelligent buildings appeared in Japan and the United Kingdom. By 1989, the penetration rate of European smart buildings was between 5% and 10%. Since then, smart buildings have achieved rapid development in Europe and the United States, which has also led to the rapid development of smart homes.

The data shows that in 2016, the revenue of the smart home market in Europe reached US$28.038 million, the household penetration rate was 0.61%, and it is expected to reach 3.13% in 2020; the North American region’s 2016 revenue in the smart home market reached US$99.12 million. The penetration rate in the family is 5.33%, and it is expected to reach 17.23% in 2020.

With the advancement of technologies such as the Internet of Things, big data, and cloud computing, in the future, highly artificial intelligence smart homes will be the ideal state for homes, and the smart home market has great prospects.

According to Statista’s estimates, the global smart home market will reach 79.3 billion U.S. dollars in 2021. ABI Research’s predictions are more optimistic. The forecast for the global smart home market will reach 70 billion U.S. dollars by 2018, and it will exceed 100 billion U.S. dollars by 2021. .

Global smart home set off investment boom

Around 2013, the investment in the smart home industry began to become active. In January 2014, Google, the smart home company Nest acquired for $3.2 billion, sparked an industry global investment boom.

Data shows that as of the end of June 2017, there were a total of 28 transactions in 2017 with an investment value of approximately US$188 million. According to the current operating data, smart home venture investment activities are expected to reach 65, a total of 435 million US dollars, down 29% from the previous year's trading volume, capital decreased by 42%.

In 2015, the transaction volume reached a record high of 111, and the total value of funds was approximately 520 million U.S. dollars. After 2015, the volume of transactions has declined, but the volume of transactions in 2016 has rebounded from 2015, rising by 45%.

In addition, the share of early investment transactions in smart homes grew steadily between 2013 and 2015, reaching a peak of 77% in 2015. After this, the trading share has been declining. The current value is 57%.

So far, the biggest deal in the early stages was to provide AudioAnalytic with a $550 million Series A investment. AudioAnalytic is a provider of voice recognition software and embedded home sensors. Its products are mainly used to detect alarms or intrusions, and to monitor pets and children.

The share of late-stage transactions rose from 1% in 2016 to the current 8%. The “other” transactions, including convertible notes and the company’s minority investment, surged from 15% to 25%. It shows that the smart home industry entered the “gold rush” stage in 2015. After the actions of major companies and entrepreneurs, the smart home industry will enter a healthy growth stage.

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