Knowing the true market potential for a product or industry is an important part of any business’s future growth. Knowing this is not only crucial to any potential investors, but also for the company itself.
When we came up with the idea behind RYSE SmartShade, we knew that it was an innovative idea that could truly benefit the lives of thousands of people across the globe. However, we also knew that it was important to put the industry at large under a microscope to find out if the idea made business sense.
What we didn’t know was exactly how vast and lucrative the market potential for smart shades was until we took a deep dive into some market research.
The Consumer Market Potential For Smart Shades
It’s a well-assumed fact that only a fraction of residential window coverings are motorized. It turns out, that fraction is 8% of all residential shades (source: Sundale Research 2016.).
However, for a product like RYSE SmartShade, which automates existing window shades, this actually translates into a massive $27 billion opportunity in the residential market alone.
In addition to this, market research from TechNavio indicates “The Global Smart Shades market is expected to grow from $162 million in 2019 to $1.47 billion in 2024. Of this, $247 million will come from new installations, while $1.22 billion will come from retrofits and replacements.”
What this all means is that the smart shades market is only in its infancy with lots of potential for growth. This potential is even greater when you consider the retrofit capabilities of a product like RYSE SmartShade.
But what is driving this insane growth?
Market Drivers For The Smart Shades Industry
There are several reasons that so many are bullish on the smart shades industry, with some expected drivers and some unlikely. These include:
- A year-over-year increase in demand for products that are energy efficient
- Growing consumer demand and adoption of home automation products that focus on convenience
- General growth in online e-commerce channels and traditional retail channels
- A growing number of smart cities and urbanization
- Increasing residential & commercial construction
- An increase in demand for home furniture that is multi-functional
So we’ve established the market size and the specific reasons that this market is expected to grow by so much.
But, how exactly does RYSE fit into all of this?
Where RYSE Fits In The Smart Shades Industry
There are several reasons that the smart shade market is ripe with opportunity, however, most of these analyses of the market do not actually factor in replacement or retrofit options. They are only focusing on new installations of brand new motorized window shades, purchased for new constructions, buildings, and homes.
This means there are over 550 million manual window shades in the residential market that RYSE can potentially motorize.
In addition to this, we’ve only covered the residential market so far. Things actually get much more interesting when the commercial market is considered.
The Commercial Market Potential For Smart Shades
Over 780,000 commercial buildings have ‘Building Automation Systems’ (BAS) with 220,000 having lighting automation (source: Energy Information Agency). You can think of a BAS as the commercial version of a residential home’s smart home system.
RYSE SmartShades not only integrates with Building Automation Systems, but is an effective and efficient way to handle a massive problem that plagues many businesses and buildings: cutting back on energy usage and HVAC loads.
Windows, specifically, are responsible for more solar heat gain than any other building surface and 30% of all energy consumed is wasted with half of that energy being lost through windows (source: Department of Energy).
This all amounts to a $35 billion problem.
A problem that RYSE SmartShade can solve.