Identification of Smart Home Potentials in Germany

Smart Homes promise a new approach in energy efficiency based on terms such as demand side management as well as increased comfort and security. While technical foundations have been laid, the market is still in its early development stage. To support penetration, it is of importance to analyze market characteristics and act respectively. This paper identifies general market characteristics that are needed for a successful market implementation. The characteristics are proofed against the German Smart Home market using a literature review and expert interviews. Based on the findings, recommendations to improve the development of this market are derived. Findings are arranged within a SWOT analysis. It becomes evident that a cooperative interaction between all players is essential to offer a broad product variety concerning different customer groups. Thus, a comprehensive analysis regarding the current state of emergence of the German market is conducted. The identified strengths and weaknesses enable a goal-oriented research in favor of a future and market development. Potential investors contribute from detected opportunities and threats. Initial strategies are given.