The rapid development of smart home industry will continue to enhance market penetration

2016 China International Exhibition intelligent home applications will be held in Shanghai June 9. The exhibition of “wisdom of life wisdom lead the future” as the theme, brought together industry leading brands, products cover all areas of smart appliances, smart home security, a comprehensive showcase of new smart home technology, new designs and new products to further promote China’s smart home the rapid development of the industry.

Market research firm statista data show that in 2016 the US smart home market size of $ 9.7 billion, becoming the largest country in the global smart home market. In addition, last year China’s smart home market reached 40.34 billion yuan, an increase of 41% is expected by 2018, China’s smart home market will reach 130 billion yuan, the future CAGR of around 48%. Smart home market is showing rapid growth, the industry will enter a rapid expansion period.

From a global perspective, as countries with traditional user habits of different household products, smart home selection will vary. In the US market, home central air conditioning penetration has exceeded 70%, and 85% of households equipped with central heating thermostat device, 60% of households equipped with refrigeration equipment central thermostats, smart thermostats, represented intelligent energy-saving products favored. In the European market, security products by consumers concerned, the UK, Spain and Germany, nearly 80 percent of broadband households tend to choose the smart home security products.

In China, consumer more interested in intelligent home appliances. Tencent survey showed appliances, smart TV, smart lights, automatic climate control, smart cameras, smart washing machines, refrigerators and smart intelligent air purifiers become most users want to buy smart home products. In addition, China’s Internet users has reached 668 million people, the Internet penetration rate of about 50%, already have better conditions for the development of smart home, smart home but our penetration less than 5%, compared with the wide gap between the United States, the future broad space for development.

From the industrial chain, smart home industry can be divided into upstream components, including chips, sensors, passive components and circuit boards, chip smart home industry is the core part, a direct reflection of the technology and product performance; midstream link terminal products including intelligent control, intelligent control center, data transmission module and a processing module; the downstream end of the finished products, including smart thermostats, appliances, lighting, security and intelligent single small goods. Among them, the middle and lower part is the focus of the layout of the Internet company, by mastering the intelligent home gateway, to achieve control of the Internet to interact entrance, application development, and service control platform.

With the acceleration of Internet, big data and cloud computing integration of information technology and the Internet giant to seize control entry intelligent hardware, home market will also accelerate the pace of transformation and upgrading, personalized, diversified applications will boost the rapid penetration of smart home industry promotion. Orville cloud network predicts that by 2020, China’s smart air conditioners, washing machines and refrigerators market penetration will increase to 55%, respectively, 45% and 20%.