Although the home of the future is the stuff of science fiction, the tech world is determined to make it a reality. Soon everything from garden products to bathroom appliances will be controlled by the touch of a smartphone. Without setting foot in the door, a person headed home will turn off the security system and turn on the shower, and begin preheating the oven.
The concept of outfitting everyday objects with sensors and connecting them to the web is called the Internet of Things. And the announcement last week that Google was paying $3 billion to acquire Nest, a maker of Internet-connected home products, put a seal of approval on this nascent market.
“Google is showing that the Internet of Things is not a passing fad,” said Jason Johnson, the chief executive of August, a company that makes smart locks controlled by a smartphone app. “It is a legitimate industry, and I’m excited to see big companies taking it seriously.”
Most of the products on this market are made by smaller companies. SmartThings, a start-up in Washington, D.C., sells a kit of small sensors that can monitor moisture levels and detect motion. Canary, a New York company, is working on a video security system that sends alerts when it notices a drastic change in temperature, air quality, motion and more.
And as the Google deal suggests, big companies are positioning themselves to be players as well. Many cable companies, including Time Warner Cable and AT&T, offer connected home systems that include appliances and lights. Even Staples, the retail chain, is selling products like light bulbs that are controlled through a smartphone application.
Apple has some interest in the field, too. The company’s AirPlay system enables the iPhone to become a remote control, for example.
The motivation behind all these companies is clear: the global market for connected home products could be as large as $40 billion in the next five to seven years. But there is more than just money at stake. It is the chance to become a household name in consumer technology products, perhaps the next-generation equivalent of Apple or General Electric.
However, there are challenges. One is that a connected home is expensive to set up. For now, at least, “smart” products cost several times more than their traditional counterparts. For example, the Nest smoke and carbon monoxide detector costs $129, while many typical detectors cost $40 or less. Nest has estimated that its $249 thermostat, its most popular product, is in less than 1 percent of households.
Another hurdle is that many people are reluctant to add more apps and digital services to their lives.
Then there is the data and information generated by many of the devices — lots and lots of information. Some users might find the flood of additional alerts and notifications overwhelming or difficult to understand.
Smart-connected devices also face concerns about security and privacy. A hacker could theoretically target a smart lock or home security system, for example, and the data collected by the products might be used by the companies that make them.
August, the company that is working on making smart locks, will not start shipping until it is certain that its system is safe from breaches.
Despite all these doubts, the tech industry remains confident about the possibilities. Google’s purchase last week made that clear.
“This is the tipping point year,” said Alex Hawkinson, the founder and chief executive of SmartThings. “The big guys are waking up to the opportunity and it'll accelerate.”
Adapted from The New York Times
