It’s Prime Time for IoT

I’ve been working in the Internet of Things (IoT) since 2013 when I led the launch of MobileLink at Generac. From Generac through the days leading WeMo and Alarm.com's PointCentral, I’ve read predictions of how fast IoT devices would penetrate home and work - and lived through how long it takes to get just 1 device in 1 household.??

Thus, I recently got excited when Elizabeth Parks and the Parks Associates team showed that adoption of consumer IoT, AKA “smart home,” has reached 42% and is now squarely in the ‘Early Majority’ phase of it's tech adoption curve.

How did we get here??

Simply put - enough IoT minds made it easy for the average consumer to see the value of adopting the device or service. Yes, controlling our lights is cool, but with CFLs and LEDs already so prevalent, it didn't really make a lot of sense for an average consumer to go spend $40 on a connected light bulb to save money (unless they were really into cool colors or getting rid of old, mechanical timers). 谷歌 's Nest made it simple for consumers to save 10% or more on heating and cooling. Ring made it cost-effective and easy to enhance or replace security systems with cameras that instantaneously tell us what’s going on at home. Brilliant Smart Home gave us an elegant, intuitive, non-phone based interface to easily interact with our newly connected homes. Our growing comfort with connected technology, and our changing demographic needs, will evolve what value consumers need to see in future products in order to maintain and grow this adoption level, but these early wins helped build the value that drove momentum for consumer IoT.

What is next?

It's great to see connected technologies make their way into our lives via our homes, but what about commercial IoT deployments in places where we learn and work? Eric Roseman recently shared some survey data from CBRE that is indicates what is to come: 48% of U.S. CRE investors said they are considering retrofitting existing buildings to be ESG-compliant, and 37% are looking to acquire/develop green buildings.

This intent from commercial real estate owners is so high because, similar to consumer progress, they see a path where commercial IoT can deliver value in the form of net operating income (NOI).? In the multi-dwelling world, early commercial IoT focused on creating NOI by enhancing revenue, which worked great in a world with high occupancy and the ability to push rent and fees. But with revenue growth a challenge in the foreseeable future, we need operational efficiency gains to drive NOI.? Connected locks from Schlage Locks , ASSA ABLOY Group and Kwikset drive NOI by removing rekey costs and enabling self showings. Sensor Industries water waste sensors reduces water and sewer bills, while also lowering leak remediation costs and insurance premiums. Connected thermostats from Quext and PointCentral reduce operating costs by preventing excessive HVAC wear and tear and making sure HVAC systems don’t overrun in vacant units.

It’s a promising time for IoT as solutions provide concrete benefits to consumers and businesses, and I’m excited to be a part of the team that helps share the value they bring!

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