Global Smart Home Market To Pass 770M By 2021
A new report by Juniper Research has estimated that smart home automation and monitoring devices in the market will grow to over 770 million globally by 2021.
The forecast represents an eleven-fold rise from just 68 million estimated in 2016.
They say that North America, Far East & China and West Europe will account for almost 75% of all households adopting the technology, with an estimated total market spend of $195 billion.
What’s more, they say that a one-off purchase model will overtake subscription-based offerings by 2018, bringing $6.2 billion in revenue.
Juniper predicts that new entrants and disruptors will intensify input from the developer community driving increased ‘smart’ device integration and helping to generate growth when it comes to case-specific applications.
Research author Sam Barker observed that “successful players will be able to identify critical issues which can be alleviated through the introduction of smart home technology. For example, countries that are faced with ageing populations, such as Japan, will benefit from increasing interplay between automation and digital health services”.
They highlight the disruptive role of startups here, saying that “due to the fragmented nature of the Smart Home market, innovation will play a key role in a success of start-ups, rather than agility. The ‘Big 4’platform providers,Apple, Amazon, Google and Samsung will continue to have a monopoly on the market,therefore any successful new entrants into the market will be those who integrate themselves into a wider offering from the bigger players.”
According to the report, “the greatest challenge for any start-up in the Smart Home market continues to be the inability to determine the industry’s path in the future. A start-up’s influence on the market is not big enough to drive mass adoption of a technological standard, business model or process. Where, for example, Apple has been able to drive wider take-up of NFC-enabled solutions across some retail and financial industries, no start-up will be able to singly ensure that a low-power communications technology becomes dominant in the Smart Home; unless they emerge from start-up status.”