The “connected home” might be the Next Big Thing in both the service provider and the consumer electronics industries, with a global market value growing by a compound average of 23 percent annually over the next five years to more than $10 billion in 2014, according to ABI Research.
“Service providers view home networking not only as an avenue to create consumer loyalty, but also as a new revenue-generating cash cow,” said ABI Research industry analyst Serene Fong.
Instead of pure voice or data services, service providers now include content, applications, networking and sometimes gaming, and even energy management, in their service offerings.
There are still obstacles to overcome before it’s possible to create a truly connected home, however.
“Service providers and equipment manufacturers should not rest on their laurels,” Fong said. “Price, product quality and end-user experiences still remain intensely competitive, and manufacturers will have to keep their customers satisfied before they can start hoping for real significant revenue growth.”
