Hardware Will Continue to Drive the Growth of Smart Home Market in the next Five Years

It is reported that the 2016 international consumer electronics exhibition displayed a large number of smart home devices, highlighting the growth and potential of this market. As the infrastructure and service products developed in the past few years have laid a solid foundation for the popularization of smart home devices, the sales of smart home devices will nearly double in the next 12 months. Although hardware will continue to drive the growth of the smart home market in the next five years, the transformation to regular services is already "in progress". According to market research firm ABI research, by 2020, the proportion of recurring services in the revenue of smart home market will increase from less than 20% to nearly 25%.

Driving the transformation to regular services is the continuous popularity of manageable smart home systems from many manufacturers, including home security, telecommunications and cable TV, and retailers. Manufacturers that have launched such systems include ADT, vivint, at & T, Deutsche Telekom, Comcast, Lowes and staples. In addition, the new generation of self-service installation equipment and systems from start-ups and technology giants such as Google and Samsung have also promoted the growth of recurrent services, including data collection and storage.

Jonathan Collins, chief analyst of ABI research, said, "As smart home functions continue to enter new homes, manufacturers will benefit from the initial sales revenue of equipment and systems, but their goal is to convert the sales of equipment and systems into services that can bring regular revenue. Similar to traditional home security services, the purpose of manageable smart home system pricing is to win new customers with low-cost equipment, so as to bring long-term regular revenue Sexual income. "

DIGITIMES said that although security manufacturers are currently the leader in the market of manageable smart home systems, telecom / cable TV companies and retailers will take a share in the market by 2020. These manageable service providers will smoothly transform the users installed by DIY into their users' ability, which will become an important way for regular service growth.