Skip to main content

Smart Home Service Revenue will Reach $100B by 2020

Although the fundamental ideas of applied automation in a residential setting were conceived long ago, progress to a technology-rich 'smart' home have remained somewhat elusive. Nonetheless, market development should improve as vendors utilize more effective product adoption strategies.

By definition, a Smart Home is one that is designed to deliver or distribute a number of digital services within and outside the home environment, through a range of networked devices.

According to the latest worldwide market study by Juniper Research, consumer spend on Smart Home services -- including entertainment, health, energy and home automation -- will reach $100 billion by 2020. That's well over twice the estimated spend for 2015, at $43 billion.

Entertainment services, such as Netflix and Spotify, are playing a key role in boosting the Smart Home market size -- driven by a universal appeal, and the relatively low cost of these services.

However, emerging Smart Home segments, such as home automation, are expected to gain momentum, driven by falling hardware costs and increased consumer awareness of the benefits.

The Juniper study found that numerous whole-home automation subscription services have struggled to address the mass-market. Therefore, incremental unit-by-unit purchases, to personalize the home, are now viewed as the most likely entry point into the market.

Even so, their research found that vendors such as SmartThings and Nest have successfully added subscription services to their hardware sales in order to generate the perception of lifetime value.

"Enabling services to generate recurring revenue on top of Smart Home hardware will be crucial for realizing the projected long-term success of this market," said Steffen Sorrell, senior analyst at Juniper Research. "However, tapping the developer community to innovate and address the wider market remains an issue."

That being said, the research forecasts that the number of connected appliances in Smart Homes will rise to over 20 million by 2020. But the market will continue to be characterized by high prices and a low perceived value in device connectivity.

Other key findings from the study include:

  • Voice control and other 'hands free' mechanisms will become the principle interface between users and devices in the Smart Home.
  • The use of wearable devices to passively supply 'quantified self' data to control Smart Home devices is likely to emerge as a key use-case by 2020.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun