Market intelligence providers Guidehouse Insights released the report Market Data: Smart Home Analytics this week that looked at the smart home devices market across five major regions in the world including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa (MENA).
The report examined four business models which included bundled analytics, B2B customer engagement and digital self-service, other device-tied software analytics, and B2B2C services alongside seven technology types, with a 10-year forecast and market size from 2020 through to 2029.
The report from the market intelligence providers predicted that the market could see annual smart home data analytics revenue increase from $5.5bn in 2020 up to $24.1bn in 2029 at a compound annual growth rate (CAGR) of 17.8%.
Daniel Talero, research analyst at Guidehouse Insights explained why the market is set to experience significant growth by saying: “Given analytics’ increasing value to consumers, utilities, and other stakeholders, along with the falling cost of data storage and analytics, this market is expected to experience significant growth over the next decade.”
To get to the findings, the report addressed key questions that included:
- what are smart home data analytics?
- What are the different types of data analytics offerings in the residential space?
- What are the use cases for smart home data analytics?
- What are the key drivers and barriers for the smart home data analytics market?
- How quickly is the smart home data analytics market expected to grow over the next decade?
- How will revenue growth vary by region and by technology?
The report highlighted that new analytics capabilities are increasing the adoption of smart home devices including meters, thermostats, fire detection, security, plugs, and lighting due to increasing the value and safety they can offer a resident.
“Although the effects of the COVID-19 pandemic on these long-term trends remain unclear, Guidehouse Insights anticipates a net stimulating effect on the demand for smart home devices and smart home data analytics,” added Talero.
Smart devices are becoming increasingly popular across a variety of industries including healthcare with Insight recently announcing the use of their Intelligent Technology Solutions to stop the spread of infections such as COVID-19 in the workplace.
According to the report by the market intelligence providers, the smart home devices market is currently focused on expanding customer engagement with better information through mobile apps and web portals. The goal for this being that the smart home devices can provide added value when integrated into utility residential demand-side management and demand response (DR) programs.
Only recently the conversational AI provider Orbita raised $9m for their voice and chatbot solutions that can be integrated with smart devices so people can get the healthcare assistance they need without leaving the home, echoing the suggested demand that the report has identified.
The insights in the report found that companies are increasingly offering customer engagement solutions including analytics bundled with hardware purchases, business to business (B2B) software, and business to consumer (B2C) services.
Vendors are increasingly adopting the business to business to consumer (B2B2C) channel, where their products are rebranded by utilities or other intermediaries before reaching consumers which allows for a one-branded bundle to be used by the end-user.
The full 25-page report is available via Guidehouse Insights website alongside a free executive summary of the key findings and indications for the smart home devices market going forward.
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