Smart Home Market Provides Opportunities For Service Providers
Amid the growth of the smart home market, opportunities exist for service providers across a variety of applications, new Strategy Analytics research shows.
Strategy has forecast that consumers will be spending nearly US$130 billion annually on smart home offerings by 2020, of which it estimates 47 per cent can be addressed by service providers.
Safety and security applications have the potential to generate more than US$26 billion in new revenues for service providers, with self-monitoring applications to exceed US$14 billion, globally by this time, according to Strategy.
The US leads the way as the largest single-country opportunity, with Strategy forecasting that it will reach US$21 billion by 2020, with the opportunity in Western Europe to reach nearly US$10 billion.
“Can be addressed are the operative words,” Bill Ablondi, Strategy director, smart home strategies, commented.
“There are many different types of companies seeking to capture market share for one or more products and/or services in the smart home market, including retailers, insurance companies, energy providers, security service providers and device manufacturers to name the prominent participants to date.
“Service providers will have to effectively compete and/or partner with these types of companies in order to earn a viable market position. Success in the market will be based on a company’s ability to develop and execute a sustainable business model.”