Wireless home tech has become a significant market in Southeast Asia in recent years. Projections show that the revenue from smart home products and services are likely to reach over $1.2 million USD by 2021 in the ASEAN region. This increase represents 22.5% of the annual growth rate with expectations that the market will have a value of over $2.7 million USD by the year 2025. In 2021, the household penetration for smart home and Internet of Things (IoT) products is approximately 3.9%, but this is likely to increase to 6.4% by 2025. Presently, the average revenue per instalment of a Smart Home is $77.70 USD.
Many modern gadgets and home appliances now come with built-in compatibility to smart home apps like Amazon’s Alexa, Google Assistant and Apple HomeKit. Their ease of use and convenience incentivise consumers to invest in technology for their homes.
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However, growth is not exclusive to households; most smart technology use occurs in the workplace.
Southeast Asian smart home products
The ASEAN region’s market already has some strong brands producing smart technology for homes and offices. Jarton, a Thailand-based company, launched ‘Jarton Home’ in 2019. It has developed CCTV, security systems and smart locks and sockets, all accessible and manageable through its application. Developed by Connext Concept, another leading IoT installation company in Thailand, is Promtec. It has developed digital camera doorbells, remote operated curtains and other products that make homes smarter.
Other companies have launched mobile apps available on Google Play for smart home integration, while Blugard based in Malaysia, has developed an extensive automation setup. It provides a high-end security and home management system to the user while also allowing integration with other applications to provide an easy-to-use, comprehensive package.
Igloohome is a smart home application company from Singapore. It is developing state of the art security products for homes that are also attractive choices for many companies operating in Southeast Asia.
Another Singapore-based smart home automation company Anjels cleverly took note of the commercial market’s interest, and developed office focused smart applications and security products alongside their home offerings. It offers wireless home management products, including energy and elderly-care monitors.
Emerging trends in the smart home market
The evolution of smart home applications and products in Southeast Asia is fascinating, as products connecting to Alexa or Google Assistant are relatively expensive for some consumers in developing countries. Consequently, only fairly affluent households can afford smart home applications.
However, due to the commercial sector’s strong interest in smart security and monitoring of their workplaces, the sector is growing. These wireless products and applications are considered an economical and viable security and management tool.
Most wireless home tech applications available or in development have strong automation and AI components that may seem redundant in domestic settings but are highly valuable in offices. The products are also interoperable, so more than one individual can use or control the applications, allowing business owners to give management access to all relevant employees.
As local players develop economised products to replace or work in conjunction with Alexa, Google Assistant and Apple HomeKit, the prices become more reasonable and accessible to a broader consumer base. As a result, even though smart homes products may still be a considerable investment for some homeowners, they are a very viable purchase for commercial offices. As a result, almost 24% of the market share increase in the smart home consumer base is thanks to the retail and industry sectors showing a continued interest in the products.
Challenges faced by manufacturers
One major challenge the smart home market in Southeast Asia faces is the limited need for the products. As they can be expensive, and most households do not have state of the art smart devices, it is challenging to find buyers for the product.
However, in countries like Singapore, Thailand, and Malaysia, the market is strongly leaning towards customising and targeting the applications for commercial use. They provide an inexpensive, viable solution to the security challenges commonly found by industry and retail in the region.
Another issue that developers of smart home products may face is security. As the products rely on secure wifi and wireless automation, they can be prone to hacking. Robust, inbuilt protections are necessary to ensure data transference safety and the security of the products. They also require stable internet and power supplies, which can be hit and miss in some countries in the region.
Wireless home tech is the future, and the future is now. The world is steadily moving towards smart homes, businesses and cities. Smart home technology using Alexa, Google Assistant and other software are becoming more commonly used in Southeast Asia. While presently, the rise in this technology is predominantly in the commercial sector; homes in the region are also moving towards a smarter future.