Amazon, Google, Apple and smaller players are all pushing into the smart home industry, but partnerships are key in this growing and diverse ecosystem, says ABI Research.
A wealth of investment and growing consumer enthusiasm is driving the value of smart home spending to create a global smart home market expected to hit US$123 billion in size by 2022, up from US$56 billion in 2018.
That growth and the potential for the smart home to be at the heart of consumers daily lives and purchasing decisions has brought a growing number of players and offerings competing to gain a foothold in the market.
The result is a current smart home ecosystem that is immensely complicated. The entire smart home market will need to diversify and be more collaborative for vendors to increase their market share, advised ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies.
ABI Research released its strategic Smart Home Ecosystem Infographic, which identifies more than 150 vendors in six main service sectors: Security, Energy Management, Home Entertainment & Media Management, Home Maintenance, Health, and Personalization.
Each service sector is a key area for adoption and growth and numerous solutions ranging from voice control and smart plugs to Electrical Vehicle (EV) chargers and motion sensors.
While some of the largest companies in the world – Amazon, Apple, Google, and Samsung – are actively engaged in the smart home market, they do not have the ability to provide everything needed in the smart home space. Partnerships are key for any smart home player.
Companies need a vision on where to position themselves to maximize their return on investment, how to create new revenue streams, identify which channel partners will maximize their go-to-market strategies and zero in on the real competitors for mergers and acquisitions as well as product development.
“The holistic picture of the smart home landscape shows it is getting more crowded with nontraditional vendors, making it more difficult for both established and new players to see where opportunities and adjacencies lie,” said Stuart Carlaw, Chief Research Officer at ABI Research.
Crossing over Smart Mobility and Smart City
“A complete look at the entire ecosystem shows how the smart home is crossing over to smart mobility and ultimately smart cities, and this will require extensive collaboration among companies; no one company can survive the smart home market alone,” added Carlaw.
For instance, well-known automobile manufacturers BMW and Tesla are getting pulled into the smart home ecosystem because they make connected EV chargers. Traditional window manufacturers Pella and Velux make smart enabled windows and blinds. “However, Samsung and Apple are not in the EV and smart blind markets, respectively, proving that these types of established companies must diversify and collaborate to increase their share of the smart home market,” said Carlaw.