Apple, Amazon, to create a smart home Standard. This is what to expect

Some of the technology industry’s largest companies, the main plan for the fast-growing smart home market.

Last month, Apple, Amazon, Google and the purple Alliance, which represents companies including IKEA and Samsung, announced a push to develop standards for the Internet connected smart home devices, so that they can interoperate. Today, one of the company’s products are often not connected to another is, to create trouble for customers.

“If the lighting cannot be easily connected to the door or Motion Sensor, or security camera can not be connected with the intelligent lock, smart home adoption will slow, if not come to a screeching halt,”said Jack Narcotta, a senior industry analyst at Strategy Analytics. “The company has done a better job recently simplified the initial installation of the equipment. What really is to consumers and frustrating to get devices from different brands work with one another.”

The Alliance is in a time of huge growth for the smart home industry. In 2015, there are only 6 million American family of smart home devices, according to Forrester Research. Last year, the number had grown to 25 million.

Currently leading ecosystems, including Amazon’s Alexa, Google Home, Apple, and Samsung’s calendar. Although competitors, they have a common goal of creating a standard to sell more products.

“I believe that Amazon, Apple, Google, and the purple Alliance member companies recognize that, for the smart home to evolve into a smart home brings new devices and services consumers purchase with this change—a common language needs to be created, the”Narcotta said.

When large companies own allies, and the smaller the company the inevitable fear is being launched. But Forrester Research Vice President and principal analyst Thomas Husson said the standard will be beneficial to smaller companies by making them easier to build smart home products niche of the market.

“There are many different use cases and different sub-markets whether you see the smart energy, security, healthcare,”Husson said. “So there is no reason why a small and innovative brand, you can not establish credibility, especially in some market position.”

Egg analysis Ronan de Renesse agree that the opportunity for small makers of smart home products, but he warned that the new standards will reduce costs for all companies, because they do not need to develop products for multiple ecosystems. This will reduce barriers to entry, creating more competition, pushing prices lower, and eventually put more pressure on smaller companies that lack the deep pockets of heavyweights.

“There will be room for smaller suppliers to co-exist in this segment,”de Renesse said. “However, competition will be very fierce, and prices will fall rapidly, which puts a big question mark on profitability.”

A big theme at CES

The coalition plan promises to color some of the discussion at the CES, the annual technology trade show that begins in Las Vegas on January 7. Smart home devices, including smart thermostats, cameras, and doorbell, it will play a big role in the event.

Smart home device manufacturers will be talking about retailers selling their products about the impact of the new Alliance, with the press, Narcotta said. Of course, they will also have the opportunity to discuss what it means for consumers.

Looking to the future

The biggest question surrounding the standard, however, when it will be ready, if any. Taking into account all of the different companies of the agenda of the participation agreement is not easy.

For example, companies will have to debate the costs and privacy for data shared across devices.

“It will take at least another 12 to 18 months before we see the first commercial products on the basis of such a potential standard,”Husson said.

Therefore, in this case leave the consumer? Likely confusion, given the lag time before any standard kick.

“There is nothing the consumer can do between now and then in addition to continues to check the product specifications and requirements recommended in the storage or the network, to ensure that the products they want to buy works with the current settings,”de Renesse said.

But even there, analysts say, consumers should not be held on the purchase of smart home products. Some of today’s products are still valuable and the products of the company Union will not become obsolete, even after the standard is developed.

“There is no reason for consumers to delay or prevent the purchase of equipment,”Narcotta said.

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