It's no secret that many U.S. consumers are obsessed with technology. You only have to look at the lines of shoppers camping out at Apple stores waiting for the latest device to be released to confirm this observation.
That obsession with technology, combined with the increased connectivity in our lives — also called the Internet of Things, or IoT — has led to innovations in technology that allow us to manage our homes from a distance, leading to the "smart home."
As Statista's Felix Richter points out, "There is hardly any part of the home that cannot be automated or controlled via smartphone or tablet app. Automated lighting, smart heaters and wireless audio systems are just some aspects of what is already a multibillion dollar market."
According to Statista's Digital Market Outlook, the five largest markets for smart home technology are currently the United States, Japan, Germany, China and the United Kingdom, with the U.S. leading the pack both in terms of revenue and household adoption. There are currently 4.6 million smart homes in the U.S., a number that is expected to increase fivefold by 2020.
Although Americans are worried about cyber attacks and data privacy, they appear to be embracing smart home technology. Insurance agents often ask their clients about fire and burglar alarm systems, and now, they can ask about smart home technology as well. Underwriters may factor in the use of such technology in assessing risk and setting rates.
This chart from Statista shows the estimated number of smart homes in the five largest markets for smart home technology.
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