Smart Home Device Manufacturing

Manufacturing Challenges for Smart Home Devices

While this market is growing, smart home device manufacturers still need to address significant challenges. Some of the biggest obstacles to creating profitable smart home products are:

• Supply chain complexity
  Smart home products incorporate many types of electronic, mechanical, and structural or housing components. Sourcing parts, managing logistics, and identifying backup options in case of supply chain disruptions can get expensive if you don’t have expert management and a network of reliable partners.
• High initial costs
  Developing a new product is an expensive process. Creating the hardware, software, and integrations will be expensive upfront. Positioning a product in new markets can also be costly and slow-going until your product or brand reaches a tipping point of consumer familiarity.
• Cybersecurity vulnerabilities
  Smart home systems face significant cybersecurity risks. Both software and hardware require protections against privacy risks, hackers, and unauthorized access, even for DIY systems.
• Interoperability
  Most people buy smart home solutions piece-meal over time and may use a combination of platforms and ecosystems. Smart home products that are compatible with devices from other popular systems, without lag or loss of functionality, have a considerable advantage over the competition.
• Data privacy
  Consumers need reassurance that your company will protect their privacy and the data collected and stored by your devices.
• Rapid product life cycles
  The smart home industry is evolving quickly, and today's innovations quickly become old news. As a result, some products will have very short life cycles. It’s important to account for this with cost-efficient manufacturing or strategies to future-proof your idea.
• Sustainability
  Governments, third-party organizations, and a majority of consumers expect manufacturers to adopt and expand eco-friendly and sustainable practices. This can include greener manufacturing and shipping, sustainable disposal and recycling programs, or both.
• Lack of reference architectures
  There are few standard practices for smart home device hardware and software development. This lack of informational infrastructure can make R&D harder. It also makes designing for interoperability and security more challenging.
• Battery drain
  Wireless smart home devices can quickly drain their batteries due to being “always-on” for continuous functionality and responsiveness. It’s critical to optimize things like battery size, charge life, recharge convenience, and energy efficiency.
• Set-up and tech support
  Smart home systems can be complex to set up and integrate, so your customers may want installers, setup experts, and maintenance specialists they can turn to for assistance. Consider if your company can provide these staff or if it makes more sense to work with third-party partners.

Keeping these in mind from the start can make your products and services more resilient.