The popularity of smart home platforms has exploded in recent years, thanks to the introduction of voice assistants in the form of the Google Assistant and Amazon’s Alexa. In fact, according to a new report from Navigant Research, global annual revenue for smart home platforms could reach an estimated $14.3 billion by 2028, that’s a quadrupling on what is estimated in 2019 – just $3.2 billion.
As expected, platforms from major tech firms are set to take the lion’s share of the revenue between now and 2028. That includes the likes of Amazon’s Alexa, Google’s Assistant and Apple’s HomeKit, but with the market’s growth set to explode, it should leave ample opportunity for custom installers to upsell consumers who want a more cohesive set-up.
“The smart home has the potential to revolutionize the way we interact with technology,” says Paige Leuschner, Senior Research Analyst, Navigant Research.
“Stakeholders are driving the adoption of connected devices and growing the number of touch points in the home to generate user data, which leads to more opportunity to drive additional value and generate new revenue streams.”
Despite the estimated growth, however, Navigant Research sees some barriers to adoption. This is because as mainstream consumers gain more access to smart home technologies, many struggle to use the devices or access the benefits desired from the products, and not all devices work together seamlessly. Additionally, data privacy and security issues deter customers, as does the price premium of smart devices. This is where a custom installed solution comes into play; they can help alleviate some of these issues.
For a full rundown on Navigant Research’s report, you can access it for free on the company’s website.