By 2019, the average household will have 24 Internet-connected devices, fuelling a $3.2 billion market, research says.
Telsyte on Tuesday said it expects spending on ‘Internet of Things’ (IoT) home products and services to grow almost eleven-fold over the next four years.
The IoT describes a situation where physical objects or things connect to the Internet and can become active participants in business processes.
It is underpinned by machine-to-machine communication – where a device captures an event, transmits it over a network to an app, and translate it into meaningful data.
The market for smart lifestyle products (appliances and gardening devices) will hit $1.2 billion, while smart home services (installation, management, and cloud services) will reach $812 million, Telsyte said.
Smart security products (alarms, cameras, sensors and smart locks) will be worth $416 million; smart energy products such as sensors, outlets and light bulbs will bring in $658 million; and smart hubs around $64 million.
“While long mooted, the Internet-enabled ‘whitegood’ will finally become the norm, as most manufacturers – aided by the lower cost of micro-processing – build wireless Internet connectivity into most of their products,” said Telsyte senior analyst, Steven Noble.
“Consumers will find themselves buying IoT-enabled devices by default,” he said.
Vendors at every point of the chain will stake their claim. For example, Samsung has committed to connecting 90 per cent of its new products to the Internet by 2017, and all of them by 2020.
Services like Google’s new US$10 per month Nest camera monitoring service will disrupt traditional home service providers, increasing adoption of smart home services while lowering unit prices, Telsyte said.
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