The smart home industry, once almost exclusively concentrated on single family homes, is starting to include a greater percentage of multiple dwelling units (MDUs), according to a new MDU smart home report from ABI Research.
The study projected that that the smart apartment market in the U.S. will grow at a nearly 50% compound annual growth rate (CAGR) from 2022 to 2030, becoming a $13 billion market by the end of the forecast period.
MDU Smart Home Report
The research firm cited a variety of economic and social factors as drivers behind the growth, including well-funded players such as SmartRent, Latch, and StratisIoT (RealPages), which have platforms that bring smart home management to individual apartments. Each of these platforms targets rental properties owners, offering them attractive benefits, including operational efficiencies and the ability to attract and keep higher paying tenants.
Device providers that want to capture a share of this market will need to win the support of platform providers and building owners, both of which demand proven, reliable equipment capable of swift integration and management, the research firm advised. Leading companies today are offering programs like Amazon’s Alexa for Residential, which supports fleet management for Echo devices, and similar programs.
To date, the market has focused on a handful of smart home devices including smart locks, thermostats, and water sensors, but demand is extending to many other smart home devices.
“By 2030, the smart apartment market will represent a US$4 billion annual opportunity for those device providers that can adapt their smart home offerings to the demands of the market,” said Jonathan Collins, ABI Research smart home research director, in a prepared statement.