The Z-Wave Alliance, the standards development organization dedicated to advancing the smart home and Z-Wave technology, has announced the release of its fourth-annual Z-Wave Ecosystem Report.
The newly available report, researched in cooperation with Interpret, provides an in-depth look at the growth and challenges for the smart home market globally. Building on the Alliance’s exploration of the U.S. market in the 2023 Ecosystem Report, the report examines key growth points in the U.S. and comparative data from the U.K., France, and Germany. The report takes a deep dive into the importance of interoperability, impacts on purchasing behaviors, and assesses primary barriers to smart home device adoption.
Insights from the 2023 Ecosystem Report include:
- The market is healthy and poised for growth, with the U.S. leading global smart home adoption and year-over-year (YOY) growth in the UK, France, and Germany.
- Z-Wave Owners across all four countries are generally more satisfied with their security systems and are more likely to purchase additional smart home devices within the next six months. Highest interest was indicated for sensor kits, especially for electrical and fire safety, and water usage.
- Interoperability with products already owned is a top requirement for future purchases across all three EU countries, as well as the U.S. market. The 2023 Ecosystem Reports the importance of interoperability increases exponentially as more devices are owned. In the U.S. alone, 54% of device owners consider interoperability an important consideration in their next purchase.
- The new end-user expectation is basic smart home technology in any new home. Over half of smart home device owners, and expected movers in the U.S., U.K. and Germany would like their next home to have at least basic smart home technology, for which they would pay extra.
- DIY vs Pro Installation: A strong pattern has emerged suggesting growing consumer confidence for investing in smart home products. However, the report reveals ample opportunities for the professional channel to enable direct-to-consumer sales of add-on devices.
“The 2023 Z-Wave Ecosystem Report provides a much-needed referendum on interoperability,” comments Mitch Klein, executive director, Z-Wave Alliance.
“The findings in the report arrive at a critical moment in the maturity of the smart home to offer insights across the category, globally. The report follows in the stead of exciting Z-Wave news including surpassing 4,100 certified devices, the first Z-Wave Long Range products, new board members, as well as the completion of the Z-WAVE Source Code Project. The details within the 2023 report are instrumental in helping guide business decisions as we navigate what could be the most exciting year of smart home market growth thus far.”
In addition to the collected data, the 2022 Ecosystem Report includes a case study from MCA Systems S.A.S detailing the dramatic energy savings achieved by integrating an award-winning Z-Wave-enabled Horus solution into hotel properties.
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The entire Z-Wave Alliance 2023 Ecosystem report is available for download here.
More news from the Z-Wave Alliance: Z-Wave Alliance Introduces Source Code Project
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