China's Smart Home Sector Has Huge Potential

Source:iResearch May 02,20172:40 PM
The favorable policies and the coming of Internet of Things laid solid foundation for smart home, smart community and even smart city industries. iResearch holds the opinion that although smart home sector is still at its initial stage of development, the consumption capability improvement based on the family as a unit and the further improvement of housing conditions will guarantee smart home huge potential for future development.
The huge potential market attracted massive market participants from related industries and entrepreneurs. However, behind the glory on the surface was a relatively terrible beginning of the sector. Giants represented by traditional home appliance companies, Internet companies and operators actively explored smart home market. Traditional home appliance companies make great use of their advantages in home appliance production and break in smart home market early with intelligent home appliance products, while Internet companies tried to offer clients products and services by establishing platforms that provide hardware products of their own brand and from third-party companies and related services for users.  

Meanwhile, smart home capital market flourished in 2014. Despite that the investments cooled down due to the capital winter, number of the financing cases in smart home sector was still higher than that of smart wearable products and smart health care market, indicating that smart home attracted more attention than any other market segments in smart hardware industry. What’s more, the number of early-stage financing cases was significantly higher than that of medium-stage and later-stage financing cases, meaning that start-ups were turning into a new force in the market.
iResearch holds the opinion that smart home sector has fallen into an awkward hot-inside-cold-outside situation although the market participants have tried to start their smart home businesses as early as possible. Consumers’ reaction towards smart home products was far duller than what the sector had expected, and their awareness and acceptance for smart home sector were still limited. Data from iResearch showed that the awarenesss of China’s smart home products was 42.3% in 2015, and the ratio of customers who purchased smart home products after they tried the products was only 16.1%. Thus, for smart home sector there is still a long way to go to develop the market and inspire consumer’s purchase desire. 

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