Study: The ‘smart home’ industry will double in size by 2018, reaching $71B
Source: NestWe’re one step closer to living like the Jetsons. According to a study led by Juniper Research, the smart home market will reach $71 billion by 2018 — up from $33 billion in 2013, and $25 billion in 2012. While this $71 billion figure seems large, it’s a rather modest estimate if you consider Juniper’s report last year; the firm predicted in 2012 that revenues would hit $60 billion by 2017. In fact, if the industry does not accelerate any further and continues its 2013/2014 growth rate of ~$8 billion per year, it will easily surpass Juniper’s predictions. According to the new report, as much as “80% of total Smart Home service revenues” will be driven by entertainment — an interesting find, considering the push for smart appliances, like refrigerators and smoke alarms. More along these lines, Juniper states that “no single stakeholder [will] be able to dominate thanks to the number of verticals within the home.” Imperfect analysis Amid all of this smart home excitement, some research firms are genuinely struggling to define and measure it. A report published in 2012 by Allied Market Research, for example, valued the industry at just $4.8 billion. The smart home market balloons in size if you include the service providers which supply products like smart TVs with content, as Juniper has done. Still, in defense of AMR, it’s potentially inaccurate to define Netflix as part of the smart home industry — even if it is currently a key aspect of the experience. Despite these discrepancies, however, it’s clear that the smart home market is becoming increasingly measurable as it grows in size — if you focus on concrete deals like Google’s recent acquisition of Nest $3.2 billion. Judging simply by the investments of companies like Google, Microsoft and other industry giants, it easy to see why mouths are watering the smart home gold rush. VentureBeat is providing our Marketing Automation Study to readers who fill out our survey. Share your experience, and you’ll get our full report when it’s published. Also: speak with the analyst who put this report together.