Smart Home Elderly Monitoring Market Predicted to Grow More Than 600% by 2020
By Tamer Abouras
A recent study by Strategy Analytics has concluded that the market for elderly monitoring products and services in the Smart Home remains small in 2016, despite favorable market conditions and high levels of consumer interest. The new report, entitled Smart Home Application Focus: Elderly Monitoring, does predict steady growth over a five year period as market forces and improved product offerings help to spur adoption.
Strategy Analytics estimates that in 2015, fewer than 75,000 homes in the U.S. and 30,000 homes in Western Europe used technology solutions for elderly monitoring. By 2020, the user base is set to grow to more than 600,000 homes in the U.S. and 579,000 homes in Western Europe, an increase of more than 600%, opening up new opportunities for providers of technology solutions for elderly monitoring.
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Notably, conditions for growth in this category are favorable, with individuals living significantly longer lives. At the same time, the costs of in-home healthcare and nursing facilities are on the rise; the elderly and their families are willing to pay for technology solutions that make aging in place possible. In Strategy Analytics' most recent Smart Home Consumer Survey, 34% of respondents with elderly relatives 70 years of age or older and living apart from them at a separate residence reported an interest in free services for elderly monitoring, while 30% reported a willingness to pay these services.
While the elderly and their families report a willingness to pay for technology solutions that make aging in place possible, the fact is that the overwhelming majority of them still haven't made a purchase. According to Joe Branca, a senior industry analyst of Smart Home Strategies at Strategy Analytics, "There aren't currently any solutions on the market that integrate the physical, cognitive, social and nutritional elements of elder care, and incorporating new features along these lines would help to deliver more value to elderly individuals and their families."
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Current key players in the U.S. are Alarm.com, Nortek Security & Control, Lively (GreatCall) and Care Innovations. In Western Europe, LivOn, Essence and Dutch Domotics are among the companies offering solutions in this space.
The new report contains a detailed analysis of key market drivers, the size of the opportunity for companies providing solutions in this space and the value chain behind elderly monitoring solutions. It also provides an analysis of the competitive environment as well as commentary on the landscape for emerging technologies.
For more information about the report, visit analytics.com.