Dan's Biz Bookshelf: 'Getting Naked: A Business Fable'
The Chemical Connection: Common Misconceptions in Wet Processing
It’s Only Common Sense: Selling to Engineers
Worldwide Smart Home Device Shipments to Nearly Double in 2016
January 15, 2016 | ABI ResearchEstimated reading time: 2 minutes
The raft of smart home devices displayed at CES 2016 highlights the growth and potential of the smart home market. Over the next 12 months, smart home devices sales will nearly double year-on-year, as the groundwork and service offerings developed over the past few years provide solid impetus for wider adoption. However, while hardware sales will continue to drive smart home revenues over the next five years, a transition to recurring service revenues is well underway. In fact, by 2020, recurring service revenues will account for close to a quarter of smart home revenues, up from under 20%. In its latest market analysis, ABI Research, the leader in technology market intelligence, segments a range of key smart home market trends and developments, a bellwether consumer market for the Internet of Things.
Read ABI Research’s Home Automation Systems report.
The transition to recurring revenues is fueled by the growing adoption of managed smart home systems from a range of players, including home security, telco and cable companies, and retailers. Vendors include ADT, Vivint, AT&T, Deutsche Telekom, Comcast, Lowes, and Staples. In addition, a new generation of self-install devices and systems from dedicated startups and tech giants like Google and Samsung are also fueling recurring revenue services such as remote data collection and storage.
“As the smart home functionality continues to push into new homes, vendors are benefiting from initial device and system revenues but the goal is to bring these sales into long-term recurring revenue services,” says Jonathan Collins, Principal Analyst at ABI Research. “Managed smart home system pricing, like traditional home security services, is geared to win new consumers with reduced device and equipment sales in return for long-term recurring revenues.”
While security players lead in the deployment of managed smart home systems, by 2020, telecom/cable companies and retail offerings will all share similar subscriber bases. The ability for those managed service providers to smoot the transition of DIY installations into their managed system subscription services will provide a valuable pathway for much of that growth.
Page 1 of 2
Share on:
Suggested Items
DuPont Reports First Quarter 2025 Results
05/02/2025 | PRNewswireDuPont announced its financial results for the first quarter ended March 31, 2025.
KLA Reports Fiscal 2025 Q3 Results
05/02/2025 | PRNewswireKLA Corporation announced financial and operating results for its third quarter of fiscal year 2025, which ended on March 31, 2025, and reported GAAP net income of $1.09 billion and GAAP net income per diluted share of $8.16 on revenues of $3.06 billion.
Alternative Manufacturing Inc. (AMI) Appoints Gregory Picard New Business Development Manager
05/01/2025 | Alternative Manufacturing, Inc.Alternative Manufacturing Inc. (AMI) is pleased to announce the appointment of Mr. Gregory Picard as our new Business Development Manager. Picard brings a wealth of experience in Sales and Business Development, having worked with some of the most prominent names in the industry.
Ensuring a Strong and Reliable Supply Chain
04/30/2025 | Marcy LaRont, PCB007 MagazineKelly Davidson, vice president of NCAB Group USA, discusses the company's stable performance in 2024 and positive outlook for 2025. She highlights NCAB's strategy of organic growth and strategic acquisitions amidst tariff concerns and global political uncertainty. Kelly emphasizes the importance of supply chain diversification, strong supplier relationships, and customer education, and notes NCAB's focus on defense production and maintaining a reliable supply chain.
2024 Global Semiconductor Materials Market Posts $67.5 Billion in Revenue
04/29/2025 | SEMIGlobal semiconductor materials market revenue increased 3.8% to $67.5 billion in 2024, SEMI, the global industry association representing the electronics design and manufacturing supply chain, reported in its Materials Market Data Subscription (MMDS).