Competition prevailing in the global smart home as a service market is considerably high on account of the presence of extremely innovative companies. The absence of standard connectivity platform and existing interoperability issues have intensified the competition among market players further. Considering the scenario, companies are trying to establish their platform as the benchmark, which in turn is giving impetus to the buyers’ bargaining power, finds Transparency Market Research (TMR) in a new study. Vivint, Inc., The ADT Corporation, and AT&T Inc., are some of the leading market players. Strategies adopted by these companies have profound impact on the overall market.
Integrated Services to Continue Witnessing High Demand
On the basis of service, the global smart home as a service market is bifurcated into managed and integrated. The integrated service segment is anticipated to contribute major share in the global smart home as a service market. It is expected to hold nearly 63.6% of the market by the end of 2017. With the increasing demand and adoption of integrated services, the integrated services segment is likely to witness steady growth and thus remain dominant throughout the forecast period. The managed service segment is expected to hold a comparatively smaller share of the global smart home as a service market.
On the basis of solution, the global smart home as a service market is segmented into security and access, lighting and window, audio-visual and entertainment, energy management and climate and integrated solutions. Of these, the integrated solutions segment is expected to hold the major share of the smart home as a service market. Security and access solution segment will emerge as the second-lead in terms of market share. Audio-visual and entertainment is projected to beat other segments in terms of growth pace. The segment is forecast to exhibit a CAGR of 19.67% during the period from 2017 to 2025. This growth is primarily ascribable to increased demand for streaming services and online content.
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Global Smart Home as a Service Market: Snapshot
Besides convenience, a chief factor fuelling the uptake of smart home products is their assistance in energy management. Smart home as a service solutions not only enable users manage entertainment and other electronic appliances remotely, they also help customers keep a tab on the energy consumption. In addition, the rising demand for advanced security and surveillance has created an environment supporting strong growth of the global smart home as a service market. Because of opportunities it exhibits, the smart home as a service market has been attracting new players. While this pose threat to the existing companies, it also paves way for innovations and upgrade of existing technologies.
On the flip side, the high cost of smart home products is inhibiting the market’s trajectory to an extent. Furthermore, privacy concerns and possibility of misusing the technology have made customers skeptical of deploying smart home solutions. Nevertheless, the advent of novel connectivity standards is expected to help the market players mitigate the aforementioned concerns in the coming years.
The global smart home as a service market is forecast to reach US$10.9 bn by the end of 2025. In 2016, the market’s valuation stood at US$2.46 bn. If these figures hold true, the global smart home as a service market will exhibit an impressive CAGR of 18.1% between 2017 and 2025.
Presence of Leading Players in North America helps it attain Dominance
The global smart home as a service market is expected to be led by North America. The region’s share in the market is expected to reach over 45% by the end of 2017, with the U.S. at the fore. Besides being an early adopted of advanced technologies, the North America market is gaining from the presence of several leading players in the region. Europe in 2016, has emerged as the second-leading market for smart home as a service in the world. In the region, France, Germany, and the U.K., have emerged as the most lucrative pockets. Moreover, Europe’s local industry exhibits a strong growth and overall consumers are aware of the latest technologies. These factors are expected to act in favor of the market in Europe.
Through the course of the forecast period, Asia Pacific is forecast to exhibit highly lucrative opportunities. The market players are likely to capitalize on the rising demand from China, Japan, Australia, and South East Asian countries.