The European smart home market is moving forward, but differences between Europe and the U.S. create unique challenges. In the U.S., adoption of professionally monitored security exceeds 20% of households. Overall, adoption of professional monitoring services in Europe is under 3% of households.

In the U.S., the security channel is the leading channel for smart home services. Many telecoms have entered the security market because it has an established market with a proven approach to generating monthly revenue, and ARPU is a key metric for that industry.

While this is currently also true for European markets, attendees at Parks Associates’ 21st-annual CONNECTIONS™ Conference expect that network service providers will be the dominant force in bringing smart home services to the mass market, followed closely by retailers and energy providers.

European and U.S. markets vary greatly. For example, homeownership in Europe is less than in the U.S., and the percentage of multifamily dwellings in Europe is much higher than in the U.S. (65% vs 35%). European renters may not feel able to outfit their space with smart home tech because they do not own that space. Regulations also differ and have an effect on how consumers are able to purchase devices or opt-in to services.

European consumers have yet to identify the “killer” smart home application leading to mass adoption of new products and platforms. As in the U.S., smart home and interactive features have the opportunity to transform the professional home security market. While professionally installed and monitored residential security is the largest example of smart home deployment in Europe, other applications will be presented with high value propositions in order to increase growth in a continent where monitored security is less prevalent.

Parks Associates’ annual CONNECTIONS™ Europe Conference focuses specifically on innovations in and issues facing Western European countries as the IoT continues to grow. For more information about the event, taking place November 1-2 in Amsterdam, visit www.connectionseurope.com.

Parks Associates’ recent industry report, State of Residential Security and Smart Home in Europe, provides an overview of the residential security market in Europe and presents the specific challenges many companies face as they seek a piece of the European marketplace for security systems and adjacent smart home products and services. For more information on Parks Associates’ connected home studies, click here.

Further Reading:

• Smart thermostats will reach 13% adoption in North America and 1.5% in Western Europe by end of 2017
• IoT Connectivity in Europe: Value of Connected Products
• Smart Home Technology Enables Expansion of European Security Services