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Disney’s 1999 film, Smart House, provided mainstream audiences with a sense of the possibilities, but the first smart home models and devices began to hit the consumer market in the early 2000s, with the proliferation of the Internet and related technologies a decade earlier. The Internet of Things or IOT is an emerging trend of which smart homes is a subset. IoT involves the integration of digital and wireless technologies in physical objects and systems, especially those historically unconnected. IoT has significant ramifications for the future of smart homes: the more devices that are connected to the Internet, the more can potentially integrated into the smart home system. Examples of IoT as relates to smart homes are the Nest Learning Thermostat, the Chop Syc digital chopping board, the Toncelli Kitchens digital kitchen countertop, the air monitor Birdi, and the Wattio SmartHome 360 energy monitor. Currently, less than 1% of homes employ full smart home technology. But by 2018, HIS Technology, a research firm, predicts that 45 million smart home devices will have been installed, and the annual business volume will have grown to $12 billion dollars. ABI Research predicts growth to $14. 1 billion by 2018. The market research firm Allied Market Research projects that the global smart homes and buildings market will grow at a compound annual growth rate of 29. 5% through 2020, at which point the market will be worth $35.

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While we chalked most of this up to the fact that ADT has several million more customers than its competitors, our tester began his call with low expectations.

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