Buoyed by the sales of voice-activated speakers such as the Amazon Echo, as well as Nest Protect — the smart smoke detector from Google — sales of smart home services and hardware is anticipated to touch $83 billion in 2017.
This information comes courtesy a study conducted by Juniper Research, a market research firm, which shares that the revenue returns for smart home hardware and services will increase to a whopping $195 billion by 2021.
The revenue generation will be fueled by a gamut of smart home devices in areas such as entertainment, health related, connected devices and automation.
The research entitled Smart Home Markets: Entertainment, Monitoring, Automation, Health, Metering, Appliances 2017-2021 discovered that smart appliances, as well as home automation systems will experience the quickest growth in the next five years. This growth will be fueled by manufacturers such as GE Appliances, Samsung, and Bosch carrying smart connectivity features in their products.
The research also shared that companies such as Apple, Amazon, Samsung, and Google's parent Alphabet will cement their place in this space as they would build further, on already owned assets such as cloud services, as well as their existent device bases.
The Big Four
Juniper ranked the four companies based on several parameters such as the success of business model it adopted, product development, innovation level, as well as breadth of industry partnerships. The four rated are as follows:
Juniper ranked Amazon as numero uno as it was able to successfully capitalize on its e-commerce presence.
"The company has managed to maximise its value proposition for Alexa by partnering with a large range of complementary players in the market, whilst utilising its own cloud platform to set Echo and Alexa apart from its competitors in terms of functionality," noted Sam Barker, the author of the study.
Amazon's top-rated smart home devices like the company's Alexa-powered speaker Echo, which debuted in November 2014, and Google's smart smoke detector Nest Protect are leading the way in the smart home space.
According to the research, the share of smart entertainment would slow down, whereas market sections like home automation and smart appliances would gather more momentum. The market share of connected services like Netflix and Amazon is also poised to reduce from 70 percent in 2017 to just 50 percent in 2021.