Home Automation Market to Top $100 Billion by 2020
The report predicted the use of wearable devices to passively supply data to control smart home devices will emerge as a key use case towards 2020.Consumer spending on smart home services, including entertainment, health, energy and home automation will reach $100 billion by 2020, well over twice the estimated spending for this year, at $43 billion, according to a Juniper Research report. The report noted the market will continue to be characterized by high prices and a low value in connectivity, and consequently, while Samsung expects 100 percent of its portfolio to be connectable by 2020, consumers actually using these features are forecast to remain relatively low. "Samsung is fairly unique in that it has a diverse portfolio of consumer electronics and appliance products," research author Steffen Sorrell, a senior analyst with Juniper, told eWEEK. "Therefore, having a connected everything strategy makes sense for it, even if SmartThings-Samsung Smart Home doesn’t take off. It’s hardware, and potential service revenues when connectivity is made use of, will benefit from smart home take-up regardless." Sorrell noted that for others like Alphabet/Google, the every screen, every device strategy is important to diversify the business away from pure ad revenue.
"For Apple it’s about recognition that awareness and demand is gathering pace--they need their solution out there or they’ll get left behind," he said.