Philips Hue Leads the Smart Home Market’s Most Crowded Segment – For Now
BOSTON–(BUSINESS WIRE)–Philips Hue smart light bulbs are lighting up more smart homes than ever, although the brand that helped create the smart light bulb market is facing an ever-larger roster of lower-priced competitors according to new research published in Strategy Analytics’ report “Smart Home Survey – Smart Light Bulbs.”
Across the four countries included in Strategy Analytics’ survey, Philips Hue was the most frequently mentioned brand, cited by more than 50% of consumers overall, a percentage nearly twice that of the next brand, IKEA. Philips Hue as of 2020 is the heavyweight in the smart light bulb market, with a brand strength rivaled only by Ring in video doorbells and Nest in smart thermostats.
However, dozens of companies are mimicking Philips Hue’s features, and selling them at a fraction of Philips Hue’s prices. Dozens of these smaller brands and their lower-priced bulbs will help stoke demand for smart light bulbs, making them the fastest growing smart home device segment over the next five years according to Strategy Analytics’ forecasts.
Strategy Analytics smart home survey revealed smart light bulbs are the third-most popular smart home device overall among the US, UK, France, and Germany, just a few percentage points behind the most and second-most popular devices, smart thermostats and surveillance cameras, respectively.
Inexpensive and easy-to-install smart light bulbs are a perfect starter smart home device for consumers as well as brands seeking to gain traction in the smart home market. Popularity of smart light bulbs was highest in the US, as expected, followed by the UK, then Germany, then France.
Jack Narcotta, Senior Industry Analyst in Strategy Analytics’ Smart Home Strategies advisory service, said, “Smart light bulbs have perhaps the most favorable benefit-to-cost ratio in the smart home device market. For many consumers, the devices are the perfect smart home ice-breaker. They’re increasingly affordable, easy to install, and easy to use, with the latter two attributes especially important as they help flatten the smart home learning curve.”
Bill Ablondi, Director of Strategy Analytics’ Smart Home Strategies advisory service, added, “Over the next few years, IKEA, Amazon, Google, and dozens of other brands will drive the bulk of smart light bulb units sold over the next few years, largely by undercutting Philips Hue’s pricing. Eventually, though, as smart bulbs become commoditized, consumers will be looking beyond price for distinguishing features in their selection process. Our survey results point to the user experience as a potential differentiator, especially 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.”
Source: Strategy Analytics, Inc.
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