- Internet of Things (IoT) is pushing two major areas that will start contributing to the growth of mobile operator revenues in the immediate term - the connected home and the connected car. While other IoT segments such as the Connected City, Connected Workplace and Connected Government are also seeing increasing number of connections being made, the connected home and the connected car offer quick monetization avenues via data packages tailored for homes and cars.
- According to Strategy Analytics, a leading research and consultancy firm, 26 percent of broadband households and 12% of total households (224 million homes) in the world are expected to have at least one smart home system by 2019 while revenues from smart home related hardware, services and installation fees will exceed $48B in 2014 and grow at a 19% CAGR to nearly $115B by 2019.
- Strategy Analytics' Smart Home Strategies (SHS) advisory service forecast, “2014 Smart Home Systems and Services Forecast: Global Total” also estimates that US will account for almost 40% of the global total in 2014 with 21 million households spending a total of $17.9 billion on smart home systems. However, other regions, specifically Western Europe and China are expected to catch up on the market share as the adoption of Smart Home picks up in these regions.
- The forecast attributed the entrance of big brands such as Apple, AT&T, Comcast, GE, Google and Samsung along with big-box retailers Home Depot, Lowe’s and Staples as one of the major drivers for the strong growth in this segment. It also said that the combination of security monitoring and home automation capabilities form the primary application in the US market, and expected to propel revenues from the segment to grow to $40 billion by 2019. Other factors, according to the report, include the introduction of elegant single-purpose devices to manage the 'Smart Home' appliances and applications.
“Just this month Wink, a recent spinoff from GE-backed Quirky, launched its line of smart home products in Home Depot stores across the US helping to continue the steady stream of smart home activity. Consumers are being hit with TV ads from AT&T, articles in the general press about Apple’s home automation initiatives and Google’s ambitions to help consumers build a ‘conscious home’ with products from its Nest subsidiary. It’s becoming increasingly easy and affordable to set up smart home devices and now companies that will make it ‘cool’ are players.”
- Bill Ablondi, Director, Smart Home Strategies advisory service and developer of the forecast, Strategy Analytics
