Smart home automation revenues to exceed $57mn by 2024, driven by smart security
New data analysed by Juniper Research indicates that automation revenues will exceed US$57 million (€50 million) by 2024. This is up from $18 million (€16 million) in 2019, and is driven by smart security solutions.
Juniper’s new research, Smart Homes: Strategic Opportunities, Business Models & Competitive Landscape 2019-2024, found the ‘Do It For Me’ model, with vendors offering advice, installation, maintenance and cloud storage on monthly/yearly subscriptions, is gaining ground. More players, such as Hive, Vivint Smart Home and TP-Link, now offer subscription packages, which broaden the value proposition with extra cloud storage, devices or superior video quality.
Evolving monetisation opportunities for vendors
The research found that insurers, utilities, mobile network operators and eCommerce vendors will capitalise on their existing relationships, including their trusted brand names and billing structures to extend their offerings to include smart home services. However, these vendors will still have to partner with smart home providers to make this business model viable.
The smart home is also attracting blockchain vendors who hope to solve interoperability and privacy issues hindering global smart home adoption. However, while blockchain could solve interoperability issues between devices, it would create interoperability issues between different distributed ledgers and add a level of complexity unnecessary in the smart home.
An increasing pool of competitors
As part of the research, Juniper assessed 15 vendors across smart home segments, comparing the relative level of their capabilities and offerings in the space. Juniper positioned the 5 leading vendors as follows:
- Deutsche Telekom
Google and Amazon lead the way thanks to their comprehensive smart home solutions, high-profile acquisitions and widely supported voice assistants. Samsung provides a breadth of smart home devices through its SmartThings arm; currently unrivalled by other players. Through its B2B and B2C solutions, Deutsche Telekom has strategically positioned itself in every corner of the smart home thanks to its white label solutions and Magenta platform.
To download the free whitepaper click here: ‘Smart Homes ~ the Rise of Smart Security’.