According to Strategy Analytics, broadband service providers are evaluating new opportunities in the smart home market.
By 2020, consumers are expected to be spending nearly $130 billion annually on smart home offerings; the research house estimates that 47% - or more than $60 billion - can be addressed by service providers. 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 are expected to exceed $14 billion globally by that time. The United States represents the largest single-country opportunity, predicted to reach $21 billion by 2020; the Western European opportunity is expected to approach $10 billion by that time.
Bill Ablondi, Strategy Analytics' director of smart home strategies, said: "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."