Revenues from smart home technology will reach $71 billion (£43 billion) by 2018, a report has predicted.
Analyst Juniper Research forecasted that the value of the market will more than double in the next four years, based on revenues of $33 billion (£20 billion) last year.
The ‘Smart Home Ecosystems and the Internet of Things’ report suggests that nearly 80 per cent of smart home service revenues will come from entertainment services by 2018, citing the increase of connection speeds as a catalyst for larger amounts of content.
The research goes on to explain that over-the-top (OTT) services such as Netflix, Lovefilm and Amazon Instant Video has fuelled the existing strength of the market, with a growth in internet-connected smart TVs backing the expansion.
4K video services and ‘Internet of Things’ smart home devices will begin to strain networks, the report adds. This means that networks will have to become “modernised and transition from legacy technologies such as IPv4 and CGNAT if they are to remain a viable player in meeting consumers’ expectations”.
The study also commented on the need for secure elements of the smart home, forecasting a $12 billion opportunity for providers by 2018 as “automation elements are added to service propositions”.
“Nevertheless,” added a Juniper statement, “providers must examine the real ‘value-add’ in order to capitalise on this market.”