While companies like Apple, Google, Amazon, and Samsung have been some of the biggest heavy-hitters in the smart home arena, ABI Research predicts that there will be many more strong competitors (and collaborators) entering the market within the next four years.
In July, the market advisory firm released a report suggesting that due to the increasing demand for smart technology and the increased investment in new products, the global smart home market will reach $123 billion by 2022. This year, the market is valued at $56 billion.
With $123 billion in their back pocket, a person could buy everybody in the United States three Amazon Echo speakers. Of course, the vast array of smart technology available today is comprised of more than just a pair of speakers that can play The Beatles when you talk to it. Now we have devices that can track and control our energy usage, garage door openers, advanced security cameras, and much more.
How Companies Can Best Take Advantage of the Growing Market
As smart technology continues to grow in other sectors such as healthcare, transportation, energy conservation, and security, ABI experts advise that companies start to collaborate in order to stay afloat in a rapidly expanding smart home ecosystem.
“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 in a press release.
“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.”
For example, Samsung and Apple will have a hard time competing with BMW and Tesla in the Electrical Vehicle (EV) charger market, Carlaw explained.
“These types of established companies must diversify and collaborate to increase their share of the smart home market,” said Carlaw.
The Collaborations Have Already Begun
Some companies are already partnering with one another to conquer the smart home economy.
This month, Nice S.p.A — one of the largest international home automation companies — revealed that it was partnering with smart tech company Fibaro. In February, Amazon announced that it was buying smart doorbell maker Ring, and Google decided to merge with Nest, a company that specializes thermostats, security cameras and alarms.
Even though there’s quite a lot of buzz around the consolidation of the smart home market, consumers are concerned about how much more information these powerhouse companies will now have access to.
Big Brother Watch director Silkie Carlo says that many people are worried about their right to privacy.
“Google already harvests an incredible amount of detailed information about millions of internet users around the globe,” said Carlo. “Now, Google is becoming embedded in the home, through ‘smart’ soft surveillance products.”
But according to ABI’s research, the increasing demand for more high tech in the home is driving the market right now — more than any concern could slow it down. If the numbers pan out come 2022, there will be a lot of potential revenue for companies to snag.