Safety and security are top applications as global smart home business hits US$62bn by 2020
Broadband service providers are evaluating new opportunities in the smart home market as the 2016 Broadband World Forum is held in London this week.
Strategy Analytics’ new report Smart Home market opportunities for service providers details the opportunities across the spectrum of smart home applications that can build the “5th Play” offering for service providers.
“By 2020, consumers will be spending nearly US$130 billion annually on smart home offerings; we estimate that 47% or more than $60 billion can be addressed by service providers,” according to the analyst firm. “Applications focusing on safety and security have the potential to generate more than $26 billion in new revenues for service providers on a global basis.”
Self-monitoring applications aimed at providing peace-of-mind for consumers will, they say, exceed $14 billion globally by this time. The United States represents the largest single-country opportunity reaching $21 billion by 2020; the Western European opportunity will hit nearly $10 billion by this time.
“’Can be addressed’ are the operative words,” said Bill Ablondi, director, Smart Home Strategies. “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. This subject is explored in the recent report Business models in the Smart Home and is the topic of the upcoming November 9th Webinar: Building successful Smart Home business models.
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