With the rapid advancement of big data, artificial intelligence and other technologies, smart homes play an increasingly important role in life. According to the data of China's smart home equipment industry market prospect and investment strategy planning report released by Forward Industry Research Institute, in 2016, China's smart home market reached 60.57 billion yuan, a year-on-year growth rate of 50.15%. It is expected that smart homes will usher in an explosion in the next few years. By 2018, the smart home market will reach 139.6 billion yuan. By 2020, China is expected to become the largest smart home market in Asia.

By 2020, the overall scale of global smart home will grow from the current 10 billion US dollars to 50 billion US dollars, and is expected to surge to 400 billion US dollars in 2030. By 2030, sales in the Asian market will exceed $115 billion, accounting for more than 25% of the global market.

The report pointed out that the rapid penetration of smart homes in China is mainly due to the increasing household income. According to the findings of the Economist Intelligence Unit, by 2030, there will be more than 40 million Chinese households with annual incomes exceeding $35,000.

“In recent years, China has become one of the key drivers of global growth. First, the rapid growth of the country’s overall economy has led to an increase in household income levels. Second, China has become the world’s largest Internet market. These two factors will make China Asia and even Asia. One of the largest smart home markets in the world."

China already has a well-developed equipment and technology ecosystem that can accelerate the development of the smart home industry. Local technology giants such as Tencent, Baidu and Alibaba, as well as local equipment manufacturers such as Xiaomi and Haier who are already producing smart home products, will become the main promoters of the industry. However, due to licensing and censorship, it is difficult for international technology companies to enter the Chinese smart home market.

The report pointed out that four major trends have made connected smart homes a reality in Asia, and these four trends will accelerate the further expansion of the smart home market:

1. It is interconnected and intelligent. Advances in technology and processing power of smartphones have greatly improved the connectivity of home devices. The adoption of big data and artificial intelligence enables some applications to meet the needs and expectations of users, making home life increasingly intelligent.

2, is interoperability. As interoperability between products produced by different manufacturers continues to increase, smart home applications are gaining popularity among consumers. The rapid increase in industry alliances and efforts to standardize agreements and open platforms have enabled the smart home ecosystem to continue to improve.

3. Product accessibility and cost. Almost all types of household equipment are already automated, and 80% have been intelligent and available on the market. As the cost of key technologies and components declines, the price of smart home devices such as washing machines, refrigerators and door locks will be more affordable.

4. New profit model. Smart home applications are connecting to a wider network, connecting all businesses within the ecosystem and creating new revenue models. For example, a networked refrigerator with a liquid crystal display can generate revenue through online advertising.

The smart home market offers valuable opportunities for all companies in the industry, but to be successful, there must be several key factors, including: balancing local and global strategies, rapidly shifting from product orientation to service orientation, and finding the right one. Partners, integrated smart home integration platform. The first company to successfully launch a smart home integration platform will receive a decisive first mover advantage.

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