
From a smart home perspective, the Internet of Things (IoT) can be easily understood through a real-life example. Imagine it's a quiet weekend morning, and you're still fast asleep. Suddenly, your scheduled alarm rings. If you hit snooze, the alarm clock sends a message to the coffee machine: “This guy’s back again. Let him rest for 15 minutes, then make some coffee.†At the same time, the coffee machine sends a signal to the toaster, telling it to start baking bread after 15 minutes. Through this seamless communication between devices, our daily lives become smarter and more enjoyable. Today, smart homes are gaining momentum in the Chinese market, but they haven’t fully taken off yet. Why is that?
Smart Home Market Trends
Since the beginning of the year, smart homes have been on the rise, becoming a powerful force in the home industry. According to an executive from a major decoration company in Beijing, since April, customer demand has shifted from just luxury to comfort and convenience. Smart homes, with their intelligent control and security features, perfectly match these evolving needs. This year, the number of customers requesting smart home installations has increased by 50% compared to last year, and the trend continues to grow.
The recent upswing in the property market has also helped boost smart home adoption. From March onwards, commercial housing prices in major cities across the country have quietly risen and remained strong into November. Experts predict a moderate increase next year. Unlike previous years, many real estate developers now highlight smart home features alongside traditional amenities. Some developers have even launched 400-500 smart homes early, which were quickly booked.
Zhang, a representative from a Shanghai-based real estate developer, explained that as living standards improve, people are looking for more than just a place to live—they want a lifestyle that is comfortable, convenient, and secure. These are exactly the strengths of smart homes. His company reported a 70% increase in sales for smart homes compared to last year, with expectations of even higher growth in the coming year.
Why Smart Homes Are Not Yet Popular in China
First, although China has seen several industry groups like the China Communications Standards Association (CCSA), IGRS, and Haier's e-jiajiao propose their own smart home standards, none have been widely adopted. The lack of a unified communication protocol means different manufacturers use various interfaces and systems. As a result, devices cannot communicate effectively, leading to fragmented user experiences.
Second, the smart home industry has been around for over a decade, but product diversity remains limited. Most products focus on security and control, with few innovations. High-tech development comes with fast replacement cycles and high risks, making many companies hesitant to invest in R&D.
Third, public awareness is still low. Many ordinary consumers don’t see the full potential of smart homes. While they care about security and convenience, they often overlook advanced features like automated appliances or remote management. Additionally, high costs and technological immaturity deter widespread adoption.
Fourth, smart homes require collaboration across multiple industries. However, China's current system lacks solid cooperation structures. Companies tend to protect their own interests rather than share technology or open up their systems. This makes cross-industry integration difficult, slowing down overall progress.
IoT Applications in Smart Homes
Traditionally, smart homes were built using wired systems, which required professional installation and long setup times. In contrast, IoT-based smart homes combine wireless technology with smart home systems, offering easier installation, better usability, and greater flexibility.
The IoT architecture consists of three layers: perception, network, and application. The perception layer uses sensors, RFID, and other technologies to collect data about the environment and residents. The network layer handles data transmission and processing, while the application layer delivers smart home services such as security, entertainment, and energy management.
Looking Ahead
The concept of the Internet of Things was first introduced in 1999 by MIT. It was later expanded by the ITU in 2005, defining it as a network where everyday objects can connect and communicate via embedded devices. In the IoT era, everything from appliances to vehicles can exchange information, enabling smarter, more connected living environments. As the technology continues to evolve, smart homes will play an increasingly important role in shaping our future lifestyles.
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