Global smart home market to hit $72bn by 2017

The ability to monitor and control your home is beginning to pique consumers’ interest around the world, with 160mn homes worldwide expected to take some form of smart home system by 2017, according to new research from US firm Strategy Analytics.

Increasing demand for monitoring and control services offered by wireless carriers, broadband, energy and security service providers such as ADT, AT&T, British Gas and Verizon, along with remote-enabled entertainment controls and smart appliances from the likes of LG and Whirlpool will drive the bulk of households that adopt smart home systems and services.

This market is expected to increase from US$ 21.8bn in 2012 to US$ 71.8bn in 2017, with the biggest revenue generators expected to be interactive security services, integrated entertainment and home controls, followed by self-monitoring systems and services.

“Home energy management will be a market driver in some Western European countries, such as Germany, where Deutsche Telekom and its partners E.ON, EnBW, eQ-3, Meile, Samsung, tadoo and Winkle are addressing smart home opportunities with the QIVICON offering,” said Bill Ablondi, Director of the Smart Home Strategies advisory service at Strategy Analytics.

“Interactive security from and Comcast in addition to ADT will remain the leading application in the US market and entertainment-related solutions will be popular globally.”

The research firm has also found that over half of broadband households in France, Germany, Italy, the UK and US are ready to adopt (and pay for) interactive security services such as remote monitoring and control, in addition to professionally monitored interactive security services.

A survey conducted in these countries in the fourth quarter of 2012 revealed “significant willingness” to pay for remote healthcare and energy management services if they are priced attractively.

Potential adoption of smart home services is found to be highest in the US, UK, Germany and Italy. While French consumers registered less interest, they did show enthusiasm for retail DIY monitoring and control. Remote healthcare services have the greatest potential in Italy if recurring fees are kept under US$ 10 per month, says Strategy Analytics.

“The percentage of broadband households with both the interest in and willingness to pay for selected connected home solutions is higher than expected,” added Ablondi. “We believe that growing smartphone and tablet use is accelerating consumers’ desire to be connected to everyone and everything important in their lives, including their family and homes.”

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