Breaking Down Residential IoT
It’s hard to believe that just a few short years ago, we were talking about the looming era where billions of devices would become IP-enabled. Just as predicted, the global internet of things (IoT) is a reality, and it’s getting bigger by the day—especially in the residential space. Over the last two years, ShareTracker discovered a 20 percent increase in residential access points, due to the expansion of meshed networks in residences like Google Wi-Fi. At the same time, smart TVs and video streaming devices have increased by 50 percent.
What’s more, the smart home segment has seen fivefold growth over the last two years. And the automotive, enterprise, gaming, device, and home security segments have each doubled in volume.
Let’s take a closer look at the residential IoT market heading into 2020:
The residential IoT market is growing at a rapid pace, as more and more manufacturers are creating IP-enabled products to streamline all facets of life—including home and personal management. According to Navigant Research, the residential IoT is on pace to reach $167.2 billion by 2027.
The residential IoT market can be broken down into the following categories:
Residential IoT networks need to connect and communicate. Routers, modems, and access points all fall into the access and IoT enablement category.
- Smart home
While the average home may not resemble the Jetsons (yet) with machines that drop pre-made meals out of the ceiling, we are seeing significant digital transformation taking place in the residential market. For instance, lighting systems, security systems, thermostats, and appliances can now be easily controlled over a smartphone interface (via smart plug) or voice-activated base station. The smart home market is one of the largest drivers of residential IoT and will accelerate in 2020 as more solutions come to market that streamlines management.
Of note is the fact that IoT adoption is less dependent on income than available space—and the larger the median-priced house, the more smart home devices are likely to be found. For example, the cleaning robot population has a higher share in Atlanta and Dallas than in Philadelphia.
While many consumers still balk at the idea of having connected cameras inside of their homes, it’s clear that people are warming up to the idea of using them—particularly for security and convenience.
For example, security cameras now link to mobile devices and screens, triggering alerts and real-time video feeds when people approach. Consumers are also increasingly using video to supervise kids, pets, and hired help. Looking forward, cameras will also start integrating more with IoT management systems for real-time environmental and operational control.
Video games have changed drastically in recent years. First, consoles became IP-enabled. Then, manufacturers started expanding off platforms and onto connected devices. Now, mobile gaming accounts for 47 percent of the global games market. At the same time, an increasing number of gamers are turning to next-gen virtual reality (VR) systems. Controllers, cameras, sensors, and microphones are becoming integral gaming assets.
Further IoT growth can be seen in the wearables market, as more consumers are turning to devices that provide a wealth of personal insight.
Wearables can provide data for many different habits and processes such as posture, heart rate, blood pressure, daily steps, food and water intake, and so on.
Amazon’s popular Alexa service has produced a variety of competitors, like Google Home, Apple HomePod, and Facebook Portal—all of which provide digital, voice-activated assistants.
These devices allow consumers to make calls and control smart home systems using just their voice. Equally as important in this market are Bluetooth-enabled speakers.
The average home today is littered with screens, including desktop PCs, laptops, tablets, phablets, smartphones, and televisions. Not only are more devices flooding into homes each year, but Americans are also spending more time on them. In fact, the average American now spends more than 10 hours each day staring at screens—generating a remarkable amount of data in the process.
Why ShareTracker is Studying Residential IoT
The residential IoT space is booming, despite the fact that it’s still fragmented and dominated by a handful of brands. Manufacturers and developers are racing to bring new connected solutions to the market, and capitalize on consumers who are hungry to automate daily processes.
In the process, a tremendous amount of data is being created—all of which can provide a world of insight for tracking IoT growth and usage. ShareTracker is actively committed to collecting this information, driving around residential neighborhoods and picking up data from connected systems and devices and turning it into actionable insight for telecom decision-makers.
Of course, the residential market represents only half of the IoT. In our next post, we’ll take a deeper dive into the home automation trends.
For more information about how ShareTracker is tracking IoT growth, contact firstname.lastname@example.org.