Even though smart home technology is in its infancy, one thing has become clear: consumers are inclined towards accrediting routine and repeated purchases of product accessories to their machines. Considering our busy schedules, having machines that could track household requirements saves time and makes our life more comfortable.

More impressively, the smart appliance can even complete the transaction without any human input by simply accessing account information. Although these types of behaviors will need some time to be entirely adopted due to security concerns or sheer discomfort, they can significantly add to the long list of advantages extended by the smart home system.

The smart home technology was developed in the early 2000's and has gained momentum only in the recent past. This was because Smart homes started to become affordable options and therefore viable technologies for many consumers. Smart home automation has grown to the level where it is ubiquitous in the current market and has penetrated into most households.

Currently, 53% of people own a smart home device and around One-third (33%) plan to invest in a smart home device in the next three years.

The global home automation market was valued at about $24 billion in 2016. That figure is expected to grow as more people begin to adopt smart home technology to the tune of about $53.5 billion by 2022. Video entertainment is expected to be the largest component of smart home technology, followed by home security and monitoring services. Smart speaker technology has already successfully penetrated the U.S. market, where roughly 31% of households use a device like the Amazon Echo or Google Nest.

All these devices bestow customers with an immense level of comfort and personalization. Rather than controlling appliances, thermostats, lighting, and other features using different devices, homeowners can control them all using one device—usually a smartphone or tablet.

Since they're connected to a portable device, users can get notifications and updates on issues in their homes. For instance, smart doorbells allow homeowners to see and communicate with people who come to their doors even when they're not at home. Users can set and control the internal temperature, lighting, and appliances as well.

For the cost of setting up the smart system, homeowners can benefit from significant cost savings. Appliances and electronics can be used more efficiently, lowering energy costs.

While the smart home offers convenience and cost savings, there are still challenges. Security risks and bugs continue to plague makers and users of the technology. Adept hackers, for example, can gain access to a smart home's internet-enabled appliances. In October 2016, a botnet called “Mirai” infiltrated interconnected devices of DVRs, cameras, and routers to bring down a host of major websites through a denial of service attack, also known as a DDoS attack. Measures to mitigate the risks of such attacks include protecting smart appliances and devices with a strong password, using encryption when available and only connecting trusted devices to one's network.

The costs of installing smart technology can run anywhere from a few thousand dollars for a wireless system to tens of thousands of dollars for a hardwired system. It's a heavy price to pay, especially since there may be a steep learning curve to get used to the system for everyone in the household. Billionaire investor Mark Cuban sees a huge opportunity in writing skills for Amazon’s Alexa or Google Home.

“If I were going to start a business today, I’d build it around Alexa and Google Home,” Cuban told Recode’s Peter Kafka at Vox Media’s The Deep End at South by Southwest 2019. “Alexa skills and scripting Alexa skills is really, really easy. But everybody thinks it’s really, really hard. And so that disconnect is a great opportunity.”

Skills for Alexa-enabled devices or Google Homes cover everything from interactive games to purchasing transactions. Though a nascent business at this point, skills are the primary means to monetize a smart speaker beyond the point of sale.

With more than 20,000 third-party integrations, Alexa is undoubtedly one of the most comprehensive smart home ecosystems available today. While you have likely heard of using Alexa in Eco-speaker form (“Alexa, what’s the weather today?”), you might not know that Alexa is now built into plenty of other smart products, including thermostats and TVs.

• Skills for Alexa-enabled devices or Google Homes cover everything from interactive games to purchasing transactions.
• Though a nascent business at this point, skills are the primary means to monetize a smart speaker beyond the point of sale.
• Cuban said a job scripting skills for the smart speakers could garner anywhere from $25 to $40 an hour.

“Personalization is Still King”

One thing that will remain perpetual in the future of smart home technologies is that companies must be prepared to create a customized user experience through engaging content and social media. Using data accumulated by a product, more opportunities exist for companies to craft messaging, plus deliver product and service information that is specific to the user’s tastes, past purchasing habits and product usage. Companies can provide access to social network-powered communities that generate positive experience feedback and share helpful tips and product recommendations.

Smart homes are more about living greener and providing security. Smart home technologies can make homes sustainable and allow consumers to reduce energy spending. Interactivity and connectivity are helping families to manage their homes and lives. This technology is currently being incorporated into other sectors including schools, offices, retail stores and airports. The market is expected to witness an increased demand for this technology in the coming years due to expanding awareness regarding smart home advantages. These characteristics of smart home technology make it the starting point for myriad millennial businesses to develop around.