Technology | Media | Telecommunications

Thursday, October 08, 2009

Next Wave of IP Connected Home Devices

Broadband Internet access service adoption and home networking infrastructure advances have contributed to a new wave of digital home connectivity. On the hardware front, the trend in the digital home is headed towards more IP-connected devices, signifying a new era in consumer electronics.

According to the latest market data from ABI Research, connected home devices is potentially the Next Big Thing in the consumer electronics (CE) industry, with a global market value growing by a compound average of 23 percent annually over the next five years to more than $10 billion in 2014.

As ABI industry analyst Serene Fong observes, "Service providers view home networking not only as an avenue to create consumer loyalty, but also as a new revenue-generating cash cow."

Instead of pure voice or data services, service providers now include content, applications, in-home networking, and sometimes gaming and even energy management within their service offerings.

Interest in content sharing among multiple IP-enabled devices is growing as the world's more privileged users explore the new realm of integrated browsing, communication and interactive entertainment experiences.

Studies show that consumers are increasingly investing in digital devices to enhance the quality of their entertainment experience. And, the digitally connected home forms an attractive platform for bringing different -- but now closely related -- industries together.

However, as Fong cautions, "Service providers and equipment manufacturers should not rest on their laurels. Price, product quality and end-user experiences still remain intensely competitive and manufacturers will have to keep their customers satisfied before they can start hoping for real significant revenue growth."

ABI's market study addresses shipments, ASP, revenue information and examines the growth potential of various consumer technologies. It contains segmented market forecast data for devices including televisions, game players, digital cameras and camcorders, digital photo frames, media phones, Internet appliances, DVD and Blu-ray equipment, PVRs, and portable media players.