Quick, how much do you think people are spending on smart home services today? Juniper Research says it is $43 billion dollars, and as listed above, that is for entertainment, health, energy, home automation and presumably more.
This will more than double to $100 billion by 2020, with entertainment services such as Netflix and Spotify playing ‘a key role in boosting the Smart Home market size, driven by a universal appeal, and the low cost of services.’
However, says Juniper, emerging Smart Home segments, such as home automation, are expected to begin catching up, driven by falling hardware costs and increased consumer awareness.
Juniper’s new research is called ‘Smart Home Ecosystems & The Internet of Things: Strategies & Forecasts 2015-2020’ which is on sale to relevant parties at relevant prices, found that ‘numerous home automation subscription services, such as AT&T’s Digital Life, have struggled to address the mass-market. Incremental unit-by-unit purchases, to personalise the home, are therefore the most likely entry point for the consumer.’
That said, the research found that vendors such as SmartThings and Nest have successfully added subscription services to their hardware sales in order to generate ‘lifetime value’.
Research author Steffen Sorrell said: “Enabling services to generate recurring revenue on top of Smart Home hardware will be crucial for realising the projected long-term success of this market.
“However, tapping the developer community to innovate and address the wider market remains an issue.”
Pointing out that ‘connected appliances’ are gaining traction, the research forecasts that the number of connected appliances in Smart Homes will rise to over 20 million by 2020.
Even so, Juniper predicts the market ‘will continue to be characterised by high prices and a low value in connectivity.’
Consequently, while Samsung expects 100% of its portfolio to be connectable by 2020, consumers actually using these features is forecast to remain relatively low.
Other key findings 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 towards 2020.
As always, Juniper has a whitepaper with some more information to tempt research buyers into buying Juniper’s research.
Dubbed ‘Connected Homes ~ Getting Smarter’ you can download it after free registration with additional details of the new research and interactive data set.