A recent report from Navigant Research analyzes the global market opportunity for residential Internet of Things (IoT) devices, including forecasts for shipments, installed base, and revenue, segmented by region and device type, through 2025.
According to the report, global revenue from shipments of these residential IoT devices is expected to total more than $330 billion from 2015 to 2025. The report also concludes that yearly revenue will grow from $7.3 billion in 2015 to $67.7 billion in 2025. Through devices such as smart thermostats that allow users to remotely control household temperatures or LED lights that can be switched on and off from a smartphone, the much-hyped IoT concept has arrived in the residential setting. Major companies are beginning to recognize the opportunity that these communicating devices offer for increased efficiency, automation, security, and comfort in the home.
“The IoT is like putting together a jigsaw puzzle without any edge pieces, with the number of pieces growing exponentially into the billions,” says Neil Strother, principal research analyst with Navigant Research. “Communicating devices in the IoT traverse a wide range of industries and sectors—virtually all areas of life can expect to see some form of this connected world.”
Despite the many drivers for the residential IoT market, there are at present multiple protocols and standards that are creating an interoperability barrier, according to the report. Wi-Fi, ZigBee, Bluetooth, and others are all vying for market viability, which is creating confusion for consumers and stalling overall adoption.
The report, IoT (Internet of Things) for Residential Customers, defines the emerging residential IoT market and examines the global market opportunity related to IoT technologies. The study provides an analysis of the key market drivers and barriers associated with residential IoT devices, including smart meters, smart thermostats, lighting, smart appliances, security and management systems, and smart plugs. Global market forecasts for shipments, installed base, and revenue, segmented by region and device type, extend through 2025. The report also examines the key technologies related to residential IoT devices, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.