Light Bulbs to Lead Smart Home Device Growth as Prices Drop, Says SA
Connected light bulbs will be the fastest growing smart home device over the next five years, fueled by affordable products that mimic Philips' Hue, said Strategy Analytics Tuesday. The research firm’s consumer survey showed Philips Hue was the most frequently…
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mentioned smart bulb brand, cited by more than half of respondents, more than double that of the next brand, Ikea. “Dozens” of companies are mimicking Hue’s features and selling them “at a fraction” of Philips Hue’s prices, it said. Over the next few years, Ikea, Amazon, Google and dozens of other brands will drive the bulk of smart light bulb units sold, “largely by undercutting Philips Hue’s pricing,” said analyst Bill Ablondi. As smart bulbs become commoditized, consumers will look beyond price for distinguishing features, he said. User experience will likely be a differentiator, “given the strong emphasis consumers placed on how well smart light bulbs work straight out of the box, and how many other devices they can be controlled by, such as smart speakers, surveillance cameras, or motion sensors.” Smart bulbs come in behind the most popular smart home categories, smart thermostats and surveillance cameras, said SA. Smart light bulbs, with a favorable benefit-to-cost ratio, are “the perfect smart home ice-breaker,” said analyst Jack Narcotta, citing low cost and easy installation and use.