The smart home hardware and service market is set for growth, Juniper Research reports-- revenues from entertainment, automation, healthcare and connected devices are forecast to grow from $83 billion in 2017 to $195bn by 2021.
Such growth over the 5-year period is the fastest yet, and is driven by big vendors such as Samsung, Bosch and GE Appliances adding connectivity to their products. In the meantime, the big four market leaders-- namely Amazon, Samsung, Alphabet (aka Google) and Apple-- will further solidify their position by building on current assets, such as cloud services and incumbent device bases.
The analyst says Amazon is become top dog in smart home space, thanks to innovative use of cloud services in Alexa and the ability to capitalise on its online shopping presence. It also managed to team up with a large number of complementary players in the market, leading to further growth.
When it comes to market segments, smart entertainment revenue share starts to slow down as emerging segments (such as smart appliances and home automation) gain more traction. As a result, the share from connected services such as Netflix and Amazon is to fall from 70% of the total market in 2017 to 50% in 2021.
Meanwhile disruptive entrants such as littleBits, Notion and iVee will drive growing segments such as monitoring and automation, rivaling established players with novel approaches to product developments.