Increasing Consumer Interest in Smart Homes Offers Multiple Opportunities for Growth
Double-digit year-over-year growth in 2018 is just the beginning of a smart home market that will see 467 million smart home device shipments in 2023.
Demand for smart home devices and systems has continued to soar over the past six months, according to ABI Research, creating the bedrock for a coming wave of new smart home services and revenue streams. Shipments of smart home devices will reach 252 million units by the end of 2018, up more than 55% from 2017. This double-digit year-over-year growth is just the beginning of a smart home market that will see 467 million smart home device shipments in 2023.
The past few years have brought a wealth of investment into smart home adoption. “Now, more than 70 million homes worldwide have one or more smart home devices,” said Jonathan Collins, research director at ABI Research. “These devices and their continued adoption are a beachhead for smart home players to position themselves as key partners for new and existing home services and, in turn, draw new revenues from their smart home investment.”
During the past 12 months, powerful smart home entrants have begun extending the services available to their smart home subscribers. For example, Google’s Nest partnered with Monitronics/Brinks to deliver monitored security, while Samsung’s SmartThings announced a similar partnership with ADT. While monitored security had been an early starting point for broader smart home adoption, especially in the U.S., smart home is now as likely to draw in new monitored security subscribers. The key difference is the smart home players’ new position at the heart of the new service.
In another emerging example, smart appliances gained traction this past year after years of anemic support and adoption. Smart appliance shipments in 2018 will reach more than 15 million units shipped worldwide, more than double last year’s number. Smart appliance manufacturers are looking to place themselves at the heart of previously distinct home revenue streams, including grocery and consumable reordering.
“Key smart home protagonists, including Amazon, Apple, Google, and Samsung, have turned to smart home devices to expand and strengthen their existing core revenue streams,” said Collins. “Increasingly, these and other smart home players will leverage their smart home customer relationships in order to become the gatekeeper for a host of industries looking to connect with consumers in those homes.”
For more information, visit www.abiresearch.com.