The Internet of Things (IoT) concept, though much hyped, is not brand new. It already exists in the residential setting. Smart thermostats, for instance, allow a user to remotely control household temperatures via a smartphone. Smart meters can connect to thermostats for demand response. Some LED lights now have embedded radios that allow the user to remotely control them from mobile devices. Similarly, some smart appliances and security systems are able to connect via wireless or wired technologies and share status or other data.
The residential IoT market is being driven by a desire to enable devices to communicate and share information for the purposes of greater efficiency, automation, security, and comfort in homes. Major companies recognize the opportunity and are embracing the IoT in new ways. For example, smart meter manufacturer Itron has created a developers community for Riva, a distributed intelligence platform, to accelerate the deployment of new software that can help grow the ecosystem for IoT applications. Early adopting consumers are finding value in the IoT, as well. While mobile phone applications for unlocking doors remotely or accessing energy consumption data have not become mainstream, they are helping residential customers monitor and adjust their living environment. According to Navigant Research, global revenue attributed to residential IoT devices is expected to grow from $7.3 billion in 2015 to $67.7 billion in 2025.
Source: Navigant Research