Following the news of LG acquiring stakes in Athom with a vision of AI-powered smart homes, Eleanor Hecks, Editor of Designerly Magazine writes about the wider impact
LG Electronics is making bold strides in the smart home market. Its recent acquisition of Athom will pave the way for more intelligent living spaces. As the market for smart home products continues to grow, this strategic investment will redefine how consumers engage with their connected devices at home.
LG’s strategic investments
LG has recently taken a decisive step to solidify its dominance in the smart home market by acquiring an 80% stake in Athom. This Netherlands-based company is known for its cutting-edge smart home platform Homey. Since its announcement in July 2024, LG’s acquisition has placed itself at the forefront of AI-driven home automation.
This acquisition aims to integrate Athom’s smart connectivity solutions with LG’s ThinQ platform. The move marks a significant milestone for LG as it shifts from hardware manufacturing to becoming a leader in software-based smart technologies.
With this new asset in LG’s hands, it will expand its connected device offerings by leveraging Athom’s platform, which supports over 50,000 devices through protocols like Wi-Fi, Z-Wave and Matter. By integrating this technology with LG’s generative AI capabilities, it aims to create more intelligent and personalised living environments.
Impact on the future of smart homes
Integrating Athom’s Homey platform with LG’s AI-powered ThinQ technology will change how smart homes work. By combining Athom’s ability to connect with thousands of smart devices with LG’s advanced AI, future smart homes will go beyond connecting gadgets.
This advanced smart technology could adapt to each user’s needs, making everyday life more convenient. For example, a home could learn daily routines and automatically adjust the lights and temperature without the homeowner having to lift a finger.
The demand for connected living spaces is already huge. The 2020s started with the projected market for smart home products exceeding $40 billion in revenue. Now, only four years later, smart home revenue is expected to reach nearly $155 billion by the end of 2024. With the advanced technology made possible by LG’s acquisition, demand for smart tech could skyrocket these projections even further.
This explosive adoption will be due to the creation of more responsive and efficient houses. Home automation saves energy by adjusting heating and cooling based on whether someone is home. It will also enhance security by using historical data to lock doors automatically when away. These features will make smart homes feel more intuitive and cater to various lifestyles.
Smart home technologies will further continue to evolve as the market continues to rapidly expand. As more devices become interconnected, smarter, more efficient living environments grow, and LG’s Athom acquisition will lead to this change. In the coming years, LG has plans to acquire the remaining 20% of Athom.
Such an acceleration of AI adoption and smart home software will lead to a faster rollout of more advanced features, making houses more responsive to user needs. With the ability to connect more devices, a new set of standards for convenience and efficiency will likely emerge.
The potential challenges
While this integration promises to revolutionise smart homes, it also brings several potential challenges for the future. One of the most pressing matters is data security and privacy. As buildings become increasingly connected, they will collect and process data daily. Without proper protection, this information could be highly valuable to cybercriminals.
Ensuring all these interconnected devices remain protected against hackers will be critical. Therefore, LG and Athom will most likely prioritise encryption and security updates to keep user data safe.
Another challenge is the complexity of managing such an extensive network of devices. As more appliances and systems integrate into smart homes, the potential for technical issues increases. Users may need help troubleshooting problems or managing updates across different brands and gadgets, leading to frustration.
Lastly, the fast pace of technological advancements could lead to compatibility issues. As new standards and devices emerge, existing ones may quickly become outdated. When this occurs, consumers will have to upgrade their systems continually.
While this will be a financial waste for customers, it will also be detrimental to the environment. LG and Athom will need to consider long-term sustainability and support for their devices to avoid these pitfalls.
A glimpse into the future of smart living
LG’s Athom acquisition represents a pivotal moment in smart home technologies. By merging the two companies, the future of smart homes will come with sufficient upgrades. As such, consumers can expect more from how they live and interact with their smart devices.
Author: Eleanor Hecks, Editor of Designerly Magazine
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