Increasing smart security adoption will drive home automation and monitoring revenues from an estimated $12 billion in 2018 to over $45 billion by 2023, representing a growth of over 260 per cent.

The figures are contained in a new report from Juniper Research.

The research found that smart security is a driving force behind this market growth, with manufacturers such as Nest, Hive and Netgear producing compelling mass market products. This move is reinforced by the heavy focus by big players on smart entry solutions, as evidenced by Amazon’s acquisition of Ring.

Interoperability of Ecosystems Driving Ease of Use

The research, Smart Homes: Vendor Analysis, Impact Assessments & Strategic Opportunities 2018-2023, established that major vendors are concentrating on building out their ecosystems, with corporate partnerships and acquisitions being primary tools. Juniper predicted that open ecosystems will rapidly accelerate growth, reaching 1 billion automation and monitoring devices by 2023, up from 176 million in 2018, leading to benefits for both consumers and vendors.

This approach has been aided by increasing device interoperability and in turn, consumer convenience. Meanwhile, the increasing ubiquity and low-entry cost of open platforms such as Alexa are leaving players with closed ecosystems, such as Apple, exposed.

Research Author Nick Maynard explained: “The smart home makes the biggest impact upon customers when it is seamless. By offering services across ecosystems, vendors are broadening their markets, allowing vendors to compete on features rather than compatibility.”

That finding is echoed in Australian research conducted by Telsyte, which found the most important factor for consumers purchasing smart home products are that they are easy to use or “just work”. This includes being easy to setup, and not requiring active human monitoring.

Smart Home Automation Drives Insurance Opportunity

The research also found that the smart home represents a significant opportunity for insurers to boost their appeal to consumers. Juniper estimates that during 2018, around 65 million new home insurance policies will leverage smart home technologies.

By implementing technologies such as water leak detectors and smart smoke alarms, insurers can add greater value to existing relationships and generate loyalty. Juniper recommends that this is critically important as price comparison websites have devalued the existing insurer-customer relationships.

Previous post

Google leads Australia's growing smart speaker market: Telsyte

Next post

Retailers See China As An Opportunity, But Struggle With Strategy: Study

Join the digital transformation discussion and sign up for the Which-50 Irregular Insights newsletter.