The top concern for the smart home market regarding the new tariffs is the expectation that prices for US consumers will rise for smart home products, may of which are manufactured overseas or have components manufactured overseas. This comes after inflation reversed a multi-year trend of price decreases driven by new competition from value-tier competitors. You can see this most clearly in the average selling price reported by buyers of smart cameras, thermostats and doorbells, in the chart below where price declines reversed course in 2024.

After years of inflation, the tariffs will likely make consumers even more cost conscious across the products and services the aquire. This comes at a critical time when the smart home market is just starting to reach more mass-market consumers. According to Parks Associates research, 45% of US internet households own at least one core smart home device (not counting smart speakers or smart displays) and smart home device owners are more likely to identify as Early Majority in terms of their affinity to technology. Just 5 years ago, smart home device owners were overwhelmingly Innovators and Early Adopters. This means that manufacturers are developing and selling to a more practical buyer who buys for value and real benefits rather than the promise of technology. 

Plus, higher prices will keep new households from entering the smart home market. The perception that smart home devices are not affordable is the #1 barrier to purchase for households who neither currently own nor intend to buy smart home products. (Other leading barriers include not feeling smart home devices have valuable benefits to their lives, and data privacy/security concerns).

Parks Associates recommends smart home players need to stay laser-focused on the value they provide, and how working well with others can enhance that value for the end user.

Parks Associates Smart Home and Security Tracker provides market intelligence on the competitive US Smart Home and Residential Security landscape. Interested in more information on this topic. Check out what information is included. Interested in a Demo of this service? Email info@parksassociates.com for access. 

MARKET TRENDS & COMPETITOR NEWS
The monthly report covers announcements from major industry players and highlights the market impact.

• It helps understand impact of competition
• It includes insight into the activity of major tech giants in the smart home space:” Amazon, Google, Apple, and Samsung
• It includes insight into the activity of the major smart security providers and platforms ADT, Alarm.com, Comcast, Brinks, Vivint, SimpliSafe, and others

MARKET PLATFORMS AND PRODUCTS
This quarterly view provides an aggregated view of the primary market activity surrounding a specific product category. It includes:

• New product releases
• Major feature updates to existing products
• Tracks announcements of new market products