Smart Home: Definition, How They Work, Pros and Cons (2024)

What Is a Smart Home?

A smart home refers to aconvenient home setup where appliances and devices can be automatically controlled remotely from anywhere with an internet connection using a mobile or other networked device. Devices in a smart home are interconnected through the internet, allowing the user to control functions such as security access to the home, temperature, lighting,and a home theater remotely.

Key Takeaways

  • A smart home allows homeowners to control appliances, thermostats, lights, and other devices remotely using a smartphone or tablet through an internet connection.
  • Smart homes can be set up through wireless or hardwired systems.
  • Smart home technology provides homeowners with convenience and cost savings.
  • Security risks and bugs continue to plague makers and users of smart home technology.
  • Though full-scale home automation may cost thousands of dollars, smaller individual products costing less than $100 can get homeowners started on smart home products.

How Smart Homes Work

A smart home’s devices are connected with each other and can be accessed through one central point—a smartphone, tablet, laptop,or game console. Door locks, televisions, thermostats, home monitors, cameras, lights,and even appliances such as the refrigerator can be controlled through one home automation system. The system is installed on a mobile or other networked device, and the user can create time schedules for certain changes to take effect.

Smart home appliances come with self-learning skills so they can learn the homeowner’s schedules and make adjustments as needed. Smart homes enabled with lighting control allow homeowners to reduce electricity use and benefit from energy-related cost savings. Some home automation systems alert the homeowner if any motion is detected in the home when they're away, while others can call the authorities—police or the fire department—in case of imminent situations.

Once connected, services such as a smart doorbell, smart security system, and smart appliances are all part of the internet of things (IoT) technology, a network of physical objects that can gather and share electronic information.

Security and efficiency are the main reasons behind the increase in smart home technology use.

Smart Home Systems

Smart homes can feature either wireless or hardwired systems—or both. Wireless systems are easier to install. Putting in a wireless home automation system with features such as smart lighting, climate control, and security can cost several thousand dollars, making it very cost-friendly.

The downside to wireless systems is you likely need strong Wi-Fi coverage and broadband service throughout your entire house. This may require you to invest in range extenders or hardwired wireless access points. Wireless smart home systems are generally more appropriate for smaller existing homes or rental properties due to their smaller size.

Hardwired systems, on the other hand, are considered more reliable and are typicallymore difficult to hack. A hardwired system can increase the resale value of a home. In addition, hardwired smart home systems can easily be scaled; therefore, it is often the default method when designing a new build or performing a major renovation.

There is a drawback—it's fairly expensive. Installing a luxury and hardwired smart system can cost homeowners tens of thousands of dollars. In addition, you must have space for network hardware equipment including Ethernet cables.

How to Create a Smart Home

Heating

Smart home products now allow for greater control over heating devices including when products are turned on, turned off, and controlled. Smart products may be armed with temperature or humidity sensors to automatically turn on or off if certain criteria are met. This line of smart home innovations also extends to air conditioners.

Lighting

Often with the use of a mobile phone, table, or custom remote specific to a product, lighting products now enhance the capabilities of homeowners. Lights can be switched on and off, placed on a schedule, or set to change based on sunrise or sunset times. Like some more traditional products, lights can often set to change based on motion. Smart bulbs can communicate over Wi-Fi and display statistics or metrics to your phone.

This lighting category may also contain smart home products that control or prevent light. Automatic blinds may be installed and set to close based on sunrise schedules. Alternatively, electronic curtains allow users to manage their blinds using a handheld device.

Audio/Visual

One of the more fun aspects of smart homes, many entertainment products are now heavily connected to each other and can be controlled with a single remote. Television and speakers now have greater capabilities to be played on command using applications, including being maintained on a schedule or being voice-controllable.

Security

One of the most reasonable aspects of a smart home is the enhanced security capabilities. Many products now have camera capabilities that track motion, capture video, or allow for live video feeds. This may be installed to sync with a ringing doorbell or set to display on certain areas of your property. These videos may allow for video-calling with the individual at your door, including audio capabilities.

Many smart homes are also refit with modern security kits. This includes motion sensor detectors when individuals should not be home, home monitoring, notifications and alerts of suspicious behavior, and the ability to lock doors or windows remotely using a phone.

Other

A very large section of smart homes relates to digital assistants or home hubs. These products are often interacted with using your voice and can take commands, field questions, organize your calendar, schedule conference calls, or provide alerts. Though not specifically related to one's home, these digital assistants provide a broad range of controlling smart assets, their schedules, and their statuses.

Smart smoke and carbon monoxide detectors not only sound an alarm but can be synced to your phone to alert you should you be away from your property. These devices can often be set up to send emergency notifications to specified contacts.

Automated irrigation systems have had the ability to be programmed for a while. Now, smart irrigation systems field climate and environmental conditions an factor those traits into existing water schedules. Smart irrigation systems monitor moisture-related conditions and strive to conserve water.

When budgeting for smart home products, consider any required or necessary labor/installation costs from professionals.

Advantages and Disadvantages of Smart Homes

Pros

Installing a smart home technology system provides homeowners with convenience. Rather than controlling appliances, thermostats, lighting, and other features using different devices, homeowners can control them all using one device—usually a smartphone or tablet.

Since they're connected to a portable device, users can get notifications and updates on issues in their homes. For instance, smart doorbells allow homeowners to see and communicate with people who come to their doors even when they're not at home. Users can set and control the internal temperature, lighting, and appliances as well.

For the cost of setting up the smart system, homeowners can benefit from significant cost savings. Appliances and electronics can be used more efficiently, lowering energy costs.

Cons

While the smart home offers convenience and cost savings, there are still challenges. Security risks and bugs continue to plague makers and users of the technology. Adept hackers, for example, can gain access to a smart home's internet-enabled appliances. For example, in October 2016, a botnet called Mirai infiltrated interconnected devices of DVRs, cameras, and routers to bring down a host of major websites through a denial of service attack, also known as aDDoS attack.

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Measures to mitigate the risks of such attacksinclude protectingsmart appliances and devices with a strong password, using encryption when available, and only connecting trusted devices to one's network.

As noted above, the costs of installing smart technology can run anywhere from a few thousand dollars for a wireless system to tens of thousands of dollars for a hardwired system. It's a heavy price to pay, especially since there may be a steep learning curve to get used to the system for everyone in the household.

Smart Homes

Pros

  • Are often more convenient than traditional methods of scheduling, controlling, or accessing products

  • May enhance security due to notifications or alerts

  • Offers multiple ways of performing a certain task (i.e. lights can be manually turned on or scheduled)

  • May result in long-term cost savings when considering efficient energy use

Cons

  • May pose security risk as products are connected to networks and can be hacked

  • May require additional work for homeowner to track additional passwords and monitor product security

  • Are often more expensive than their less smart counterpart products

  • May result in steep learning curve, especially for those not technologically-savvy

Home Much Does a Smart Home Cost?

On one hand, more and more smart home products being brought to market will continually put pressure on manufacturers, competition, and product prices. On the other hand, these incredible innovations are continually expanding what they are capable of and may be assessed price premiums. When considering smart home products, perform a cost-benefit analysis to determine whether the price exceeds the convenience.

$15,000

According to HomeAdvisor, it may cost up to $15,000 to fully automate a four-bedroom, three-bath home. Average total home automation costs is just under $800, though fully-connected luxury homes may run into the six figures.

In general, a smart home can start by being very focused on a specific product or room. This strategy allows individuals to invest in smart technology for minimal capital. Consider the following options priced at less than $100 as of April 2024:

  • Google Nest Mini, the home audio and assistant device
  • Amazon Smart Plug, a method of automating appliances
  • Ring Smart Doorbell, a video-enabled camera for home security
  • Wyze Thermostat, a digital, wireless, programmable heating device

What Is In a Smart Home?

Smart homes can choose to have smart speakers, lights, thermostats, doorbells, or home hubs. Smart technology can also extend to kitchen appliances or outdoor or landscaping equipment. New innovations are continually evolving what is in a smart home.

Why Is a Smart Home Important?

A smart home is important because it allows a household to become more energy efficient. In addition, it allows a household to save time and perform tasks more efficiently. A smart home is important because of the convenience it provides over traditional methods of performing tasks.

Can a Smart Home Be Hacked?

Yes. Because home automation often requires a live network connect, home automation systems can be hacked if the security protocol of the smart home product has inadequate security protocols. In addition, individuals must take additional care to not share or disclose sensitive log-in information as these devices may require a password or personal device access to control.

Is a Smart Home Worth It?

Investing in a smart home is a cost-benefit analysis that often requires an upfront investment to equip your house with the appropriate products. In addition, there is the cost of needing to train yourself and become competent in understanding how to use the products. However, the benefits of saving time performing tasks as well as potential utility cost savings may make a smart home worth it.

The Bottom Line

Leveraging innovation and technology, smart homes make it easier to do things. Whether it is controlling applications using your phone or scheduling products to perform tasks at certain times, smart homes have revolutionized the way individuals do things, consume energy, and interact with their home products.

Smart Home: Definition, How They Work, Pros and Cons (2024)

FAQs

Smart Home: Definition, How They Work, Pros and Cons? ›

Key Takeaways. A smart home allows homeowners to control appliances, thermostats, lights, and other devices remotely using a smartphone or tablet through an internet connection. Smart homes can be set up through wireless or hardwired systems. Smart home technology provides homeowners with convenience and cost savings.

What is a smart home and how does it work? ›

A smart home is a residence that uses internet-connected devices to enable the remote monitoring and management of appliances and systems, such as lighting and heating.

What are the pros and cons of smart technology? ›

Smart home technology offers a range of benefits, including convenience, energy efficiency, safety, accessibility, and increased home value. However, it's essential to consider the potential drawbacks, such as compatibility issues, internet outages, cybersecurity vulnerabilities, complexity, and initial startup costs.

How does smart technology work? ›

It is a technology that uses artificial intelligence, machine learning, and big data analysis to provide cognitive awareness to objects that were in the past considered inanimate.

How smart home makes life better? ›

These devices allow homeowners to monitor and manage their energy consumption in real time, providing invaluable insights into their usage patterns. Smart home automation offers more than just savings on energy bills. It has the potential to contribute significantly to the broader community and environmental goals.

What is an example of a smart home? ›

Here are some more examples of smart home technology: Smart lighting that can be asked to turn on and off, control brightness, or dim the lights. Smart appliances such as smart ovens, smart dishwashers, and smart refrigerators. Smart security devices such as smart door locks, smart alarms, and smart cameras.

What are the negative effects of smart homes? ›

These devices not only have higher energy consumption but, in some cases, can also degrade the local air quality, or impact the local environment in other negative ways by releasing pollutants into the air.

What are the disadvantages of smart system? ›

Cost: One of the main drawbacks of home automation is the cost. Smart devices and systems can be expensive, and the cost can add up quickly if you want to fully automate your home. Reliance on Technology: Home automation also means that you are relying on technology to control various aspects of your home.

Do smart homes need Wi-Fi? ›

While some devices don't need an active Wi-Fi connection to work, most of them do. To sum up, most smart home devices need an active internet connection to provide you with the best possible experience.

Is it worth having a smart home? ›

Smart homes are often more expensive than their less smart counterpart products, but they offer several benefits that make them worth the investment. With a smart home, you'll have greater control over your home's security, temperature, and energy usage, and you'll be able to save money on your utility bills.

How is a smart house different from a normal house? ›

Difference between Smart Home vs Normal Home

As compared to normal homes, smart homes provide in increased energy efficiency. Users has the liberty to make their house comfortable and tech savvy. As smart home is based on centralized remote access, it is important to have a strong reliable internet connection.

Why build a smart home? ›

Installing a smart home technology system provides homeowners with convenience. Rather than controlling appliances, thermostats, lighting, and other features using different devices, homeowners can control them all using one device—usually a smartphone or tablet.

What are the benefits of a smart home? ›

Smart homes allow you to have greater control of your energy use, all while automating things like adjusting temperature, turning on and off lights, opening and closing window treatments, and adjusting irrigation based on the weather.

What are the pros and cons of using it? ›

Information technology has revolutionized the way we communicate, work, and live. It has enabled us to become more efficient, productive, and flexible. However, it has also presented its own set of drawbacks. The most common disadvantages include threats to cybersecurity, privacy protection, and job loss.

How do smart homes work? ›

Smart Home Definition

You can program your connected appliances based on your preferences and the function you would like them to perform. Your smart devices then communicate with one another via bluetooth, your home's Wi-Fi, or other wireless signals to ensure the work gets done.

How much does a smart house cost? ›

Most custom installations start at around $10,000 and easily go as high as $100,000, depending on the size of your home and desired level of automation. Your bill will be divided into three primary costs for any professional installation: devices, labor, and wiring.

Why switch to smart home? ›

From the flexibility of remote control and automation to the reduction of energy consumption and increased security, smart switches empower homeowners with greater control over their living spaces. By applying smart technology, households can enjoy improved comfort, cost savings, and peace of mind.

How will smart homes change our lives? ›

Smart lighting and switches, smart security, smart heating, and smart entertainment – all have the benefits of providing convenience, security, and energy savings. Smart technology obtains many advanced features as well as voice and remote control, making smart homes convenient and easy places to live.

What are examples of smart devices? ›

Several notable types of smart devices are smartphones, smart speakers, smart cars, smart thermostats, smart doorbells, smart locks, smart refrigerators, phablets and tablets, smartwatches, smart bands, smart keychains, smart glasses, and many others.

What is a smart home in your own words? ›

A smart home is a residence equipped with connected devices and appliances that can be controlled remotely using a smartphone or tablet and are linked via a central hub or network. This includes “smart” lighting, heating and security devices, such as light bulbs, thermostats and cameras.

What is a true smart home? ›

In a nutshell

John Bodrozic, co-founder of home management software company HomeZada, describes a smart home as “a collection of hardware with software interfaces that allow homeowners to control home security, safety, lighting, climate control, yard maintenance, energy and resource use, in comfort and convenience”.

Why is it called smart home? ›

The word "smart" in "smart home" refers to the system being aware of the state of its devices, which is done through the information and communication technologies (ICT) protocol and the Internet of Things (IoT).

Is having a smart home worth it? ›

Smart homes are often more expensive than their less smart counterpart products, but they offer several benefits that make them worth the investment. With a smart home, you'll have greater control over your home's security, temperature, and energy usage, and you'll be able to save money on your utility bills.

Does smart home increase property value? ›

Does a Smart Home Increase a Home's Value? Smart home technology can definitely add to market value. Appraisers make what they call “adjustments” when they compare tech-enabled homes with similar but tech-deficient houses. Smart homes command higher prices and may be easier to sell as a result.

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