A new 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.
As device manufacturers continue to embed communications technologies, sensors, and intelligence into an array of products, the residential IoT market continues to grow. Driven by a desire to enable devices in the home to share information for the purposes of greater efficiency, automation, security, and comfort, more companies are providing products for this trend, and the market appears to have potential to expand beyond early adopters. According to a new report from Navigant Research, annual revenue from shipments of residential IoT devices is expected to increase from $7.3 billion in 2015 to $67.7 billion in 2025.
The residential IoT space is attracting plenty of attention from device manufacturers and other stakeholders who want to leverage the capabilities of connected devices, said Neil Strother, principal research analyst with Navigant Research. Already smart thermostats and smart meters can provide insights for greater energy efficiency, enhanced home systems can link security, lighting, and HVAC controlsand as device manufacturers add connectivity to more devices, the trend keeps accelerating.
While market growth is expected to extend well into the next decade, according to the report, one hurdle is the use of multiple protocols and standards among devices. This has contributed to an interoperability barrier with the potential to confuse customers and stall adoption.
The report, IoT (Internet of Things) for Residential Customers, defines the emerging residential IoT market and examines the global market opportunity. 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-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.