Point solutions dominate smart home purchases

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A favorite quote of ours is that “you don’t wake up on a Saturday morning with a home automation problem, but instead you have a product that needs replacement and you grab the one with the picture of a smart phone on the box.”  Or, giving you more credit, you see the convenience, energy savings, peace of mind, etc, for that connected thermostat or garage door opener, and you make your first exciting steps towards a “smarter” home.  We would like to contrast this type of point solution (product) with the more complex “home automation solution” (multifunction) that is offered by many retailers and service providers.

Over 80% of smart home purchases are point solutions: “North America recorded strong growth in the smart home market during 2014. The installed base of smart home [products] in the region increased by 75 percent to reach 10.2 million at the year-end. An estimated 1.8 million of these were multifunction or whole-home systems whereas 8.3 million (81%) were point solutions designed for one specific function.”  This data is from an abstract of the new market report Smart Homes and Home Automation – 3rd Edition which is a comprehensive report from Berg Insight analyzing the latest developments on the connected home markets in Europe and North America.

Arrayent is the IoT Platform chosen by trusted brands to build more profitable customer relationships (brands with “point solution” products like Whirlpool, Chamberlain/Liftmaster, Pentair, OSRAM). Multifunction connected systems give all the value to the retailer or service provider, and products that connect to these systems lose out on a lot of the value chain — the end-product manufacturers don’t control the customer relationship, the apps, the data, the ecosystem/partnerships/integrations. Arrayent’s flexible and agnostic platform gives our customers the control of defining their own ecosystem through our cloud-to-cloud integration APIs, and our customers get to own the data too,  We are the “Switzerland” of connected home platforms who let the manufacturers control their own destiny, customer relationships, and value mined from the Internet of Things.  Our customers like Whirlpool and Chamberlain have already made successful integrations with the likes of non-Arrayent companies like Nest and Alarm.com, and they didn’t need permission from us to do it — they just used a few simple web service calls to do the integration.

Manufacturers, please let us show you how you can preserve the value-chain of your connected product initiatives.  Maybe this has even made you think that you should build your whole IoT infrastructure yourself, but please realize that is very difficult and our platform is proven.

-Joe Cowan