4Q 2019

Optimizing Smart Home Services

Smart home stakeholders are starting to shift their focus from hardware sales to service-driven business models. The volume of consumers adopting connected devices has grown dramatically in recent years. Offering services gives stakeholders a means to generate recurring revenue, capitalize on their investment in the Internet of Things (IoT), and create stickier relationships with residential customers while adding value and capabilities to smart home ecosystems.

Popular services that stakeholders have introduced to the market focus on a variety of use cases, including security monitoring, health and independent living, energy savings, HVAC performance monitoring, and convenience. However, taking full advantage of the opportunity to offer home services is proving challenging. Consumers have not been convinced of the value in paying monthly fees for many of the home services available, so adoption has been fairly limited. Stakeholders must figure out the best strategy for diversifying revenue streams and monetizing consumer data to overcome the challenge, or this could become a missed opportunity.

This Strategy Insight report by Guidehouse Insights, analyzes smart home service opportunities and challenges. The study discusses evaluations of services, recommended action items, and strategies for the smart home service market. Global market forecasts for smart home service revenue through 2028 are mentioned. Case studies for emerging home service companies are also provided in the report.

Pages 14
Tables | Charts | Figures 2
  • How have growing volumes of data from the proliferation of smart home devices led to the development of home services?
  • What are the popular services and what use cases do they address?
  • How is revenue expected to grow?
  • How do market challenges limit adoption?
  • What failures and success stories exist in the market?
  • What should companies do to succeed in this market?
  • Connected device manufacturers
  • Smart home and home automation platform vendors
  • Service providers
  • Telecommunications providers
  • Energy suppliers
  • Communicating technology alliances
  • Investor community

Spark 

Context

Recommendations

Abundant Data Leads to Value Opportunities through Home Services

Stakeholders Are Developing a Framework of Connectivity in the Home

A Diverse Landscape of Emerging Home Services

ADT Inc. Command & Control: Interactive Services

Google Nest Aware: Video Analytics Services

British Gas Boiler IQ: HVAC Performance Monitoring Services

Quby Toon: Energy as a Service

Hive Link: Independent Living Services

Apple Watch: Fall Detection and Health Services

Amazon Key: Delivery Services

Tokyo Electric Power Company: Smart Home Services

Service-Based Business Models Present Opportunity in Theory but Realization Remains a Challenge

Stakeholders Shift Focus from Hardware Sales to Services

Realizing Service Opportunity Is Difficult

Amazon Key and Hive Link Demonstrate These Challenges

Limited Traction with Home Services Could Lead to New Market Dynamics

Smart Home Vendors Must Continue Exploring Ways to Balance and Diversify Revenue Streams

Stakeholders Must Ensure Solutions Operate Seamlessly

Security and Interoperability Must Be the Top Priority

Focus on Introducing Services That Are a Necessity, Not Merely a Convenience

Target Customers with Services for Emerging Markets

Stakeholders Banking on Services Must Have A Long-Term Strategy to Withstand Difficult Markets 

  • The Connected Home
  • TEPCO Strategy for Expanding Business
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