Revenues from smart home hardware and services will reach $83 billion this year, rising to $195 billion by 2021. This will be generated through entertainment, automation, healthcare and connected devices.
The figures are contained in new research from Juniper Research.
Called Smart Home Markets: Entertainment, Monitoring, Automation, Health, Metering, Appliances 2017-2021, the study found that home automation and smart appliances will be the two fastest growing segments over the next five years, driven by established manufacturers such as Samsung, Bosch and GE Appliances.
The authors found that market leaders 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:
• Samsung Electronics
Juniper believes Amazon’s innovative approach, use of cloud services through Amazon Alexa, and its ability to capitalise on its ecommerce presence gives the company a leading position.
Research author Sam Barker said, “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 per cent of the total market in 2017 to 50 per cent 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.
The whitepaper, Smart Homes ~ Getting Smarter 2017, is now available to download from the Juniper website together with further details of the full research.