- How have growing volumes of data from the proliferation of smart home devices led to the development of home services?
- What are the popular services and what use cases do they address?
- How is revenue expected to grow?
- How do market challenges limit adoption?
- What failures and success stories exist in the market?
- What should companies do to succeed in this market?
Optimizing Smart Home Services
Smart home stakeholders are starting to shift their focus from hardware sales to service-driven business models. The volume of consumers adopting connected devices has grown dramatically in recent years. Offering services gives stakeholders a means to generate recurring revenue, capitalize on their investment in the Internet of Things (IoT), and create stickier relationships with residential customers while adding value and capabilities to smart home ecosystems.
Popular services that stakeholders have introduced to the market focus on a variety of use cases, including security monitoring, health and independent living, energy savings, HVAC performance monitoring, and convenience. However, taking full advantage of the opportunity to offer home services is proving challenging. Consumers have not been convinced of the value in paying monthly fees for many of the home services available, so adoption has been fairly limited. Stakeholders must figure out the best strategy for diversifying revenue streams and monetizing consumer data to overcome the challenge, or this could become a missed opportunity.
This Strategy Insight report by Navigant Research, a Guidehouse company, analyzes smart home service opportunities and challenges. The study discusses evaluations of services, recommended action items, and strategies for the smart home service market. Global market forecasts for smart home service revenue through 2028 are mentioned. Case studies for emerging home service companies are also provided in the report.
- Connected device manufacturers
- Smart home and home automation platform vendors
- Service providers
- Telecommunications providers
- Energy suppliers
- Communicating technology alliances
- Investor community
Abundant Data Leads to Value Opportunities through Home Services
Stakeholders Are Developing a Framework of Connectivity in the Home
A Diverse Landscape of Emerging Home Services
ADT Inc. Command & Control: Interactive Services
Google Nest Aware: Video Analytics Services
British Gas Boiler IQ: HVAC Performance Monitoring Services
Quby Toon: Energy as a Service
Hive Link: Independent Living Services
Apple Watch: Fall Detection and Health Services
Amazon Key: Delivery Services
Tokyo Electric Power Company: Smart Home Services
Service-Based Business Models Present Opportunity in Theory but Realization Remains a Challenge
Stakeholders Shift Focus from Hardware Sales to Services
Realizing Service Opportunity Is Difficult
Amazon Key and Hive Link Demonstrate These Challenges
Limited Traction with Home Services Could Lead to New Market Dynamics
Smart Home Vendors Must Continue Exploring Ways to Balance and Diversify Revenue Streams
Stakeholders Must Ensure Solutions Operate Seamlessly
Security and Interoperability Must Be the Top Priority
Focus on Introducing Services That Are a Necessity, Not Merely a Convenience
Target Customers with Services for Emerging Markets
Stakeholders Banking on Services Must Have A Long-Term Strategy to Withstand Difficult Markets
- The Connected Home
- TEPCO Strategy for Expanding Business