Research firm Juniper Research has published its latest report on the smart home market, predicting that the revenue from smart home hardware and services will reach $195 billion by 2021.
Research firm Juniper Research has published its latest report on the smart home market, predicting that the revenue from smart home hardware and services will reach $195 billion by 2021.
The report, titled “Smart Home Markets: Entertainment, Monitoring, Automation, Health, Metering, appliances 2017-2021,” says the revenues in the market are expected to reach $83 billion in 2017, largely through growth in entertainment, automation, healthcare and connected devices.
Over the next five years, categories such as home automation and smart appliances will realize the fastest growth.
The research firm named four tech giants that will further solidify their market positions in the smart home field – Alphabet, Amazon, Apple and Samsung, with cloud service and incumbent device bases serving as their core competency.
Furthermore, the research firm expects Amazon to become the overall leader thanks to the company’s cloud service, via Amazon Alexa and its capability to integrate e-commerce into the product.
“The company (Amazon) has managed to maximize its value proposition for Alexa by partnering with a large range of complementary players in the market, whilst utilizing its own cloud platform to set Echo and Alexa apart from its competitors in terms of functionality,” said Sam Barker, a research analyst at Juniper and the report author.
The smart entertainment market, as the firm predicts, will slow down as the market becomes saturated while the smart appliance and home automation segments gain more traction. According to the report, the share of connected services such as Netflix and Amazon will fall from 70% of the total market value in 2017 to 50% in 2021.
Meanwhile in emerging segments such monitoring and automation, the research firm mentions that littleBits, Notion and iVee will bring innovative products to the market.