Smart home hardware & services revenue to exceed $190bn by 2021
New data from Juniper Research has found that smart home hardware and service take-up in entertainment, automation, healthcare and connected devices is set to drive revenues from $83 billion in 2017 to $195 billion by 2021.
The new research, Smart Home Markets: Entertainment, Monitoring, Automation, Health, Metering, Appliances 2017-2021, found that home automation and smart appliances will witness the fastest growth over the next 5 years, driven by established manufacturers such as Samsung, Bosch and GE Appliances adding connectivity to their units.
Also the dominant player will be Alphabet (Google), Amazon, Apple and Samsung will further solidify their position by building on current assets such their cloud services and incumbent device bases. Juniper has ranked these companies on product development, breadth of partnerships in the industry, success of their adopted business model, and level of innovation. The rankings were as follows – first Amazon, then Samsung Electronics, Alphabet and first five is concluded by Apple.
Juniper researchers believe Amazon’s innovation, use of cloud services in Amazon Alexa, and ability to capitalise on its eCommerce presence gives them a leading position. Research author Sam Barker commented: “The company has managed to maximise its value proposition for Alexa by partnering with a large range of complementary players in the market, whilst utilising its own cloud platform to set Echo and Alexa apart from its competitors in terms of functionality.”
The research found that revenue share from the most mature segment, smart entertainment, will slow as emerging market segments such as smart appliances and home automation gain more traction. The share from connected services such as Netflix and Amazon are set to fall from 70% of the total market in 2017 to 50% in 2021. Meanwhile, growing segments such as Monitoring & Automation will be driven by disruptive entrants, such as littleBits, Notion and iVee, who will rival established players by taking novel approaches to product development.