Homes around the world are going to become smarter and more connected over the next five years.
Overall, a fair number of mainstream consumers still don’t fully understand what connected-home devices are and how they work. However, adoption and awareness is still high for such a new category. We expect the devices to become more prevalent in the next two years, when growth will peak.
In a recent report on the connected home, BI Intelligence takes a closer look at this market, and forecasts shipments and revenue growth for connected-home devices over the next five years. We also examine current consumer sentiment about these new devices, the potential opportunities and barriers the Internet of Things will face on its way to mainstream adoption, and the leading companies currently in the market.
Here are some key points from the report:
- Connected-home device shipments will grow at a compound annual rate of 67% over the next five years, much faster than smartphone or tablet device growth, and hit 1.8 billion units shipped in 2019, according to BI Intelligence estimates. Connected-home devices include all smart appliances (washers, dryers, refrigerators, etc.), safety and security systems (internet-connected sensors, monitors, cameras, and alarm systems), and energy equipment like smart thermostats and smart lighting.
- The connected-home category will make up about 25% of shipments within the broader Internet of Things category this year, but that share will increase gradually to roughly 27% in 2019 based on our forecast, as growth in other IoT areas picks up.
- Connected-home device sales will drive over $US61 billion in revenue this year. That number will climb at a 52% compound annual growth rate to reach $US490 billion in 2019.
- Home-energy equipment and safety and security systems, including devices like connected thermostats and smoke detectors, will become popular first, leading the way to broader consumer adoption.
In full, the report:
- Forecasts annual shipments of connected-home devices between 2014 and 2019.
- Estimates the connected-home market’s annual revenue potential between 2014 and 2019.
- Breaks down connected-home market shipments by device category, including home-energy equipment, safety and security systems, and smart appliances.
- Discusses current consumer uptake of connected-home products and potential barriers to mainstream adoption.
- Pinpoints companies that have had early success in the market and examines the potential for heavy market consolidation.
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