BOULDER, Colo. — As device manufacturers continue to embed communications technologies, sensors, and intelligence into an array of products, the residential Internet of Things (IoT) market continues to grow, notes Navigant Research. 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 these products, and the market appears to have the potential to significantly expand beyond early adopters. According to a new report from the research firm, annual revenue from shipments of residential IoT devices is forecast 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 controls — and 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.
Publication date: 6/29/2015