How the Smart Home Market Can Develop in Ukraine — Barriers VS Opportunities 

Tuesday, June 22, 2021
How the Smart Home Market Can Develop in Ukraine — Barriers VS Opportunities 

Vadym Sydorenko, founder and CEO of the Ukrainian startup "OMO" talks about the problems and prospects for the development of the smart home market in Ukraine

By all accounts, the IoT market is still in its infancy. At the same time, new and improved devices such as ovens with Wi-Fi connection or video surveillance systems with tracking of living space via a smartphone appear every day. However, smart home improvement has not yet become mainstream. Policy advice predicts that the global IoT market will reach $520 billion by 2027. Technology has finally reached the point where people are ready to embrace this lifestyle. In the Ukrainian reality, there are a number of problems that, on the one hand, slow down the growth of the smart home market, and on the other, create prospects for development.

Insufficient awareness of the population VS formation of public opinion

The media in the USA, Germany, South Korea, and other countries publish hundreds of reports on the successful implementation of new solutions in smart homes and cities and build long-term forecasts. Local companies provide statistics on the number of installed smart sensors, improved video surveillance systems, and other IoT items that seem to be an innovation to Ukrainians.

The smart home market is ripe for astronomical growth, but consumers are waiting for something to really believe in these products. Ultimately, the mass adoption of smart home technologies will follow the same path as any other high-tech trend: mass consumers follow the pioneers. On the vastness of the Ukrainian шnternet, it is difficult to find a statistical summary of the awareness of citizens in this area. Companies also rarely publish progress reports. This problem leads to the following the inability to accurately track the size and growth of the market. IoT analytics has published a white paper that talks about this phenomenon. While one source predicted that the size of the IoT market will be $300 billion by 2020, another authoritative source predicts that it will approach $7 trillion. Regardless of the actual number, one thing is clear: the world market, including the Ukrainian one, is expected to grow rapidly.

The smart home market is still a vague concept for most Ukrainians. However, this opens the way for development: people's attitude to technology is still fresh, which is why there are no certain stereotypes common in countries where technology is popularized. Therefore, if you deliver the right messages, society will quickly get used to innovation, and then begin to actively use it. In the case of Ukraine, it is important to clearly explain the purpose of the technology and prove its advantages with facts.

Vulnerabilities in the security system VS development of companies through the development of improved software

Security problems are numerous. And as smart home technologies become more interconnected, the need for better protection will only increase.

In this regard, the relevance of solutions that guarantee data protection from malicious software and viruses is growing. Basically, smart home problems are solved by choosing the right contractor. A company providing smart home services in this market needs to keep its customers safe. Yes, it can be expensive. But in return, the owner of the house will not have to worry about the security of confidential data — for example, when he creates a smart key for the courier to enter the front door or abandon the convenience of digital twins due to information leakage.

High cost VS popularization of the product

The prices for most smart home technologies are still too high for mass adoption. While the upper market segment can invest in smart solutions, most of the market is looking for something more cost-effective. However, in this regard, positive shifts can be noted. For example, Amazon and Google have made huge strides in their voice-activated virtual assistants over the past few years. And at below $30, it has allowed millions of people to test a small fraction of what IoT has to offer. These are little things. But as technology becomes more accessible and understandable for people, the rate of adoption will increase.

Nowadays, many global companies have joined the creation of uniform standards that will make life easier for developers and users. The latter, in turn, will get rid of the need to look for gadgets that are compatible with the central hub of the smart home. It is more convenient and more budgetary. In addition, standardization will help reduce the cost of devices and make them massive. For example, Google is working with Apple, Amazon, IKEA, Samsung and other corporations to develop a unified Internet Protocol (IP) — based smart home connectivity standard.

The smart home industry is a force to be reckoned with. However, it cannot be said that the potential is being fully utilized. This is especially true for Ukraine, which is now declaring its own energy and technological independence. To move this way further, we need to take advantage of the complexities and use problems as opportunities in our market conditions. Over time, a proactive approach will benefit everyone, including homeowners, landlords, renters, business owners, retailers, and the consumer market as a whole.

OMO is a Ukrainian smart apartment building system. Telling the story of the project:

a smart apartment building system OMO Systems has been created in Ukraine. Using the app, you can open a barrier, an entrance door, or block pipes. More than 200 residential buildings have already been connected to the system, and in global plans — its automation throughout the country AIN.UA reported earlier.

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