The Z-Wave Alliance has released its fourth annual Z-Wave Ecosystem Report, providing an in-depth look at the growth and challenges for the smart home market around the world.
In cooperation with Interpret, a global insights firm, the report builds on the Alliance’s exploration of the US market in the 2022 Ecosystem Report by examining key growth points in the US and comparative data from the UK, France and Germany.
The report analyses the importance of interoperability, impacts on purchasing behaviours and assesses primary barriers to smart home device adoption.
There are many key points explored throughout the report that base around the purchase intentions of each region explored, their attitudes towards interoperability and what they would like to see as standard in their next home.
Among many highlights, the report found that the market is healthy and eager to grow, with the US leading the global smart home adoption and impressive year-on-year growth in the UK, France and Germany.
It also discovered that Z-Wave owners across all four countries are generally more satisfied with their security systems and are more likely to purchase additional smart home devices in the next six months. The highest interest was indicated for sensor kits, especially for electrical and fire safety, and water usage.
Interoperability has become a big talking point over the last couple of years, especially with the introduction of Matter. This is reflected in the report’s findings with interoperability with other products already owned being a top requirement for future purchases across all three EU countries as well as the US market. The importance of interoperability increases exponentially as more devices are owned. In the US alone, 54% of device owners consider interoperability an important consideration in their next purchase.
The report has also found that basic standards are changing when it comes to what to look for when moving house, with the new end-user expectation that basic smart home technology should be included in any new home. Over half of smart home device owners and expected movers in the US, UK and Germany would like their next home to have at least basic smart home technology, for which they would pay extra.
When looking at DIY vs pro installation, a strong pattern has emerged suggesting growing consumer confidence for investing in smart home products. However, the report reveals ample opportunities for the professional channel to enable direct-to-consumer sales of add-on devices.
“The 2023 Z-Wave Ecosystem Report provides a much needed referendum on interoperability,” said Mitch Klein, Z-Wave Alliance executive director. “The findings in the report arrive at a critical moment in the maturity of the smart home to offer insights across the category, globally. The report follows in the stead of exciting Z-Wave news including surpassing 4,100 certified devices, the first Z-Wave Long Range products, new board members, as well as the completion of the Z-Wave Source Code Project. The details within the 2023 report are instrumental in helping guide business decisions as we navigate what could be the most exciting year of smart home market growth thus far.”
The complete Z-Wave 2023 Ecosystem Report is available to download now. Z-Wave Alliance members also have exclusive access to the full 145-page research report via their member portal. The complete proprietary data report is available to purchase by non-members or is included in any new or renewal memberships.