Strategy 3
Establish and Develop Smart Home Applications

Strategy 3: Establish and Develop Smart Home Applications

Taiwanese companies play key roles in the global smart speaker supply chain, but there are no leading products in the domestic market and very few users. The development is less rapid than development in the United States or China. In terms of demand, smart home products not only increase convenience but also supplement areas in an elderly-friendly home living environment in an aged society. In terms of the supply side of services, Taiwan has a solid foundation in hardware capabilities and background in the Chinese language. It has advantages for developing smart speakers.

Smart Home Usage Status

A survey of Internet users reveals that the current smart home usage rate is approximately 30% while 50% are interested in applications. The main reason for usage is to make the home environment safer; the second reason is to make life more convenient; the third reason is simple installation.

Smart Home Usage Rate


  • N=1061

Interested in Future Use


  • N=733
  • Source: internal data from InsightXplorer (2018/10)、InsightXplorer (2018/11)

Reason for Using Smart Home

  • N=695
  • Source: internal data from InsightXplorer (2018/11)、InsightXplorer(2018/11)

Creating An Elderly-Friendly Digital Environment For An Aged Society

According to the statistics published by the Ministry of the Interior in 2018 (source),Taiwan's elderly population aged 65 and above has exceeded 14% and it is now officially an aged society. According to the National Development Council's estimates on population changes, it would only take Taiwan eight years to transform from an aged society into a super-aged society. However, the Internet access rate of the population more than 65 years old has dropped drastically (more than 60% for people aged 64 and below but only 31.1% for people aged 65 and above) and formed a digital gap in the age of the population. Therefore, under the premise of creating an elderly-friendly environment, audio control will become an important shortcut for the elderly to access the Internet. Smart speakers can assist in obtaining information online as well as in online shopping. The key factors involve the integration of smart monitoring and wearable devices to focus on healthcare and safety monitoring.

The Development of Smart Speakers Has Been Slow

"Disaster prevention and anti-theft," "smart home," and "family care" are smart home applications Taiwanese Internet users are most likely to adopt. We base our observation on the product that serves as the control center in smart home applications — smart speakers. Compared to the 20% penetration rate of smart speakers for digital online families in the United States(source)the development of the products has been slow in Taiwan and it is not a product people want to use.

Items of Smart Home People Wish to Use

People primarily focus on disaster prevention and anti-theft functions, mainly for convenience. Price and lack of demand are the obstacles.

Disaster Prevention and Anti-Theft

Smart Home Hubs
(locks, etc.)

Family Care

  • n=1023
  • Source: internal data from InsightXplorer (2018/11)、InsightXplorer(2018/11)

Close to 60% of people surveyed indicate that they do not use smart home products because "the price is too high." Approximately 50% believed that they are "not needed/considered unnecessary" and approximately 20% expressed "concerns of leakage of personal information/privacy," "immature systems," and that they "do not understand related services."

Taiwan's Advantages In Developing Chinese Language Smart Speakers

In addition to advantages in hardware design, Taiwanese companies' competitors in the Chinese language audio assistant market are Chinese brands that use simplified Chinese writing. Therefore, there are still opportunities for developing audio and AI for the Taiwanese traditional Chinese market. In addition, operators may also make full use of social media as well as audio and AI technologies to create technologies that integrate and improve lives in order to implement a strategy for achieving low costs and convenience.

Taiwan has a mature e-commerce market. It has learned from the development strategy of Amazon Echo, and the process from voice-controlled order to logistics and delivery has become the last mile for e-commerce brands' entry into homes.

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