Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Market Insight- Global Smart Home as a Service Market
Smart home as a service or also referred to as (SHaaS) is a type of service where instead of consumer, service provider selects, installs, maintains, upgrades, and programs smart home devices. Smart home as a service uses the subscription-based business models with monthly payment from consumers. Novel technologies are used in SHaaS including connected devices, sensors, cloud intelligence, and social media to combine a variety of important services into a simple-to-use app that allows service providers to make their consumers’ lives effortless and simple. There are three major aspects of smart home as a service namely intelligence, connectivity, and functionality where it can help the user to function properly.
The global Smart Home as a Service Market was accounted for US$ 3,952.9 Mn in terms of value in 2019 and is expected to grow at CAGR of 18.1% for the period 2019-2027
Market Dynamics- Drivers
- Increasing demand for entertainment content is expected to drive growth of the global smart home as a service market during the forecast period
Entertainment plays an essential role in smart homes. Smart homes offer users the ability to control their entertainment devices remotely. Moreover, smart homes provide enhanced entertainment capabilities such as content sharing and are expected to accelerate the adoption of the smart home. According to the 2015 ‘State of the Smart Home’ report by Icontrol Network, around 46% of respondents stated that entertainment is an important factor in smart home adoption. Thus, these factors are expected to drive the global smart home as a service market growth during the forecast period.
- Growing demand for energy management solutions is expected to propel the global smart home as a service market growth over the forecast period
Smart homes help the consumers with long-term cost savings on energy consumption, which in turn, is expected to accelerate the adoption of the same. Although the cost of smart home appliances is significantly higher than conventional counterparts, their cost-saving potential is second to none. According to Nest Thermostat manufacturers, an average U.S. homeowner can save up to 12-15% on heating and cooling cost. Furthermore, there are many more energy management devices available such as smart lights, smart meters, smart outlets, smart fans, and ACs. Therefore, these factors are expected to boost the global smart home as a service market growth in the near future.
North America region dominated the global Smart Home as a Service Market in 2019, accounting for 45.3% share in terms of value, followed by Europe, Asia Pacific, Middle East and Africa and Latin America.
Source: Coherent Market Insights
- High cost of implementation is expected to hamper the global smart home as a service market growth during the forecast period
Increased cost concerning the adoption of a smart home is a major restraint for global market growth. These costs are related to the purchase cost of technology or the monthly fee of the service. Thus, high cost associated with the technology is expected to restrict the market growth over the forecast period.
- Issues regarding privacy and misuse of technology are expected to restrain the global smart home as service market growth over the forecast period
Concerns regarding data theft, data breach, and theft of personal information and data are expected to restrain growth of the market. Since the technology is extending to the most of the devices at home, there is a desperate need for a standardized security platform to minimize and avert the possible cyber-security-related risks. Moreover, tackling the risk of data collection via common connectivity needs to be addressed too. Hence, these factors are expected to restrain the global smart home as service market growth over the forecast period.
Source: Coherent Market Insights
- Emerging opportunities for tech and insurance companies
Both insurance and tech companies have major growth opportunities in the market. For instance, companies, forming partnerships and packages with tech companies are essential for growth. Since tech companies are introducing novel products and innovations, such partnerships are major opportunities for insurance companies to be a part of the global smart home as a service market and influence it deeply. For instance, British Gas is in partnership with Axa Assistance offering bundled boiler covers and Allianz partnering with Panasonic to test Nest water leak detection devices. Similarly, John Lewis offered a discount on Nest smoke detectors with premium insurance.
- New connectivity standard influencing eco-system
Major advancements in information technology and the emergence of high-speed internet connectivity standards such as 5G are major factors affecting the eco-system since they will be more intelligent and interconnected with minimal legacy. Moreover, high-speed internet standards such as 5G are expected to reduce costs while improving reliability. These new eco-systems will allow better utilization of data and will broaden the scope and benefits of behind-the-meter initiatives like data-driven customer engagement tools, specifically for analytics and to meet demand response.
In global Smart Home as a service Market, by Service, Integrated sub-segment dominated the global market in 2019, accounting for 64.4% share in terms of value, followed by Managed Services.
Source: Coherent Market Insights
Key players operating in the global smart home as a service market are Ingersoll-Rand plc (Nexia), Vivint, Inc., Protection One Alarm Monitoring, Inc., The ADT Corporation, Telus Communications, Frontpoint Security Solutions, AT&T Inc., Johnson Controls, Inc., Comcast Corporation, Charter Communications (TWC), and CenturyLink, Inc.
- Key players in the market are focused on product launches, in order to expand the product portfolio. For instance, in February 2017, Ingersoll-Rand plc (Nexia) introduced a new line of indoor, outdoor HD cameras and flexible video storage plans.
- Major market players are involved in mergers and acquisitions, in order to enhance the market presence. For instance, in November 2019, Telus Communications, a Canada-based telecommunication company, acquired ADT Canada, a subsidiary of ADT Inc.