The latest report released by international management consulting firm Kearney shows that China may become the largest smart home market in Asia by 2020. The report predicts that by 2020, the overall scale of global smart homes will increase from the current US$10 billion to US$50 billion, and is expected to surge to US$400 billion in 2030. By 2030, Asian market sales will exceed 115 billion U.S. dollars, occupying more than 25% of the global market The report pointed out that the rapid penetration of smart homes in China is mainly due to increasing household income. According to the results of the Economist Intelligence Unit's research, by 2030, there will be more than 40 million Chinese households with an annual income of over US$35,000. Kearney partner, head of communications and electronics business in the Asia-Pacific region, and report collaborator Daubstein said: "In recent years, China has become one of the key drivers of global growth. First, the rapid growth of the country’s overall economy has brought household income. The level has increased; secondly, China has become the world's largest Internet market. These two factors will make China one of the largest smart home markets in Asia and even the world." Daubstein believes that China already has a complete equipment and technology ecosystem that can accelerate the development of the smart home industry. Local technology giants such as Tencent, Baidu and Alibaba, as well as local equipment manufacturers such as Xiaomi and Haier that are already producing smart home products will become the main drivers of the industry. However, it is difficult for international technology companies to enter the Chinese smart home market due to licensing and review systems. The report pointed out that four major trends have made connected smart homes a reality in Asia. At the same time, these four major trends will accelerate the further expansion of the smart home market: The first is connectivity and intelligence. Advances in smartphone technology and processing capabilities have greatly improved the interconnectivity of home appliances. The adoption of big data and artificial intelligence allows some applications to meet the needs and expectations of users, making home life increasingly intelligent. The second is interoperability. As the interoperability between products produced by different manufacturers continues to increase, smart home applications are gradually becoming popular among consumers. The rapid increase of industry alliances and the efforts made for standardized protocols and open platforms have resulted in the continuous improvement of the smart home ecosystem. The third is product availability and cost. Almost all types of home appliances are already automated products, 80% of which have been intelligent and can be purchased on the market. As the cost of key technologies and components drops, the prices of smart home devices such as washing machines, refrigerators and door locks will also become more affordable. Finally, there is a new profit model. Smart home applications are being connected with a wider network to connect all companies in the ecosystem and give birth to a new profit model. For example, networked refrigerators with LCD displays can generate revenue through online advertising. Kearney partner Narasimhan added: “The smart home market provides valuable opportunities for all companies in the industry, but to be successful, several key factors must be in place at the same time, including: balancing local and global strategies. , Quickly change from product orientation to service orientation, find the right partners, and integrate smart home integration platforms. The first company to successfully launch a smart home integration platform will gain a decisive first-mover advantage."
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