Despite a decade of double-digit annual growth, the smart home market will remain stuck until it moves to exploiting its richest resource, data. This is the conclusion reached by experts at the consulting company ABI Research, who believe that the industry is in the earliest stages of using smart home data, which will help offer more valuable goods and services to consumers.
A number of industries that are currently moving beyond the smart home can create valuable data-driven applications and services that smart homes can provide.
“Currently, there are only costly and limited ways to access even some of this data. But there is an emerging awareness that the problem of losing billions of dollars of potential benefit needs to be addressed, ”said Jonathan Collins, director of research at ABI Research.
To make data easier to access, the smart home market must move to support more standardized and simple data exchange between smart home players – both OEMs and service providers. Data is currently used in fragmented ways, typically by the largest providers of smart home platforms to support their own revenue streams from their core business, be it advertising, hardware, or retail.
Smart home players will have to tackle significant challenges, including those related to privacy, so that the growth of most of this market will not begin until mid-decade. However, ABI Research expects that smart home data access will generate more than $ 2.7 billion annually by 2030.