Global Revenue from Shipments of Residential Internet of Things Devices is Expected to Reach Nearly $70 Billion in 2025, According to Navigant Research
Interoperability issues, created by a variety of standards and protocols, are challenging this market, report finds
BOULDER, Colo.--A new report from Navigant Research analyzes the global market opportunity for residential Internet of Things (IoT) devices, including forecasts for shipments, installed base, and revenue, segmented by region and device type, through 2025.
As device manufacturers continue to embed communications technologies, sensors, and intelligence into an array of products, the residential IoT market continues to grow. 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 products for this trend, and the market appears to have potential to expand beyond early adopters. Click to tweet: According to a new report from Navigant Research, annual revenue from shipments of residential IoT devices is expected 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," says 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.
The report, IoT (Internet of Things) for Residential Customers, defines the emerging residential IoT market and examines the global market opportunity. The study provides an analysis of the key market drivers and barriers associated with residential IoT devices, including smart meters, smart thermostats, lighting, smart appliances, security-management systems, and smart plugs. Global market forecasts for shipments, installed base, and revenue, segmented by region and device type, extend through 2025. The report also examines the key technologies related to residential IoT devices, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant is a specialized, global professional services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals deliver expert and advisory work through implementation and business process management services. The firm combines deep technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism to address clients' needs in highly regulated industries, including Construction, Energy, Financial Services and Healthcare. More information about Navigant can be found at navigant.com.