Spurred by Demand for Improved Surveillance in Homes, Global Smart Home as a Service Market to Exhibit Impressive Growth
Published On : Nov 22, 2018 | Category : IT & Telecom
The global smart homes market has witnessed considerable growth since 2010, when as per Transparency Market Research (TMR), a meagre 0.5% of America homes has associated devices. However, in the last couple of years the demand has increased considerably and now established players are reeling under the threat of entry of new players. As a result of fast multiplying IoT services, the smart home as a service market is gaining traction from vendors from across the globe. Besides this, soaring interests for CAPEX and IT infrastructure have elevated barriers to the entry of new vendors.
TMR projects the global smart home as a service market to exhibit an incredible CAGR of 18.1% between 2017 and 2025. As this pace, the market will reach a valuation of US$10.9 bn by the end of 2025, from US$2.46 bn in 2016. In terms of service, the market is likely to witness considerably high demand for assimilated services and managed services. And among regions, North America is projected to emerge dominant in the global smart home as a service market.
Rising Demand for Connected Products in Household Sector to Push Growth
Through the upcoming years, the market is likely to witness steep growth, driven by the rising demand for advanced and connected products warranting modern security measures in the household sector. Also, to gain competitive edge companies have been trying to offer a multitude of supplementary characteristics in their smart home appliances or products. This in return is expected to stoke growth in the global market. Considering the increasing incidents of burglary, thefts, and infiltrations, the market players expect the demand from interference attentive and video surveillance to surge in the coming years. This dynamic is suitable for the expansion of the global smart home as a service market.
Smart Home Products Help in Energy Management, in turn boosting the Market
Smart home products helps in energy management, which is a chief driver of the market. In addition to this, the technology can enable users manage their entertainment devices as well as other electronic appliances remotely, besides monitoring their energy consumption. These factors are highly coveted in modern household, which is why the demand for smart home as a service is poised to surge in the coming years. Furthermore, the increasing demand for advanced security systems as creates an environment conducive to the growth of the global smart home as a service market. These factors are also attracting new players to the market. While this could pose threat to the existing companies, but entry of new vendors will also pave way for research and development activities.
High Cost of Smart Home Product to Have Negative Impact
On the downside, the high cost of smart home products is restraining to the global smart home as a service market to an extent. Furthermore, privacy concerns often related to these connected household devices have made customers skeptical about deploying these solutions. Nonetheless, the advent of improved standards with respect to connectivity will help the companies to mitigate the aforementioned concerns, in turn giving significant impetus to the global smart home market.