Revenues generated from Smart Home services will touch $71 billion by 2018 from $33 billion last year, said Juniper Research.
Juniper Research in its report called Smart Home Ecosystems & the Internet of Things said nearly 80 percent of Smart Home service revenues will come from entertainment services by the end of the forecast period.
The report noted that as connection speeds have increased, service providers are able to offer greater volumes of content, delivered with increasing convenience.
Growth has been spurred by the emergence of high-profile OTT (Over-The-Top) content providers such as Netflix, LOVEFiLM and Amazon Instant Video, while demand is being further fuelled by mass adoption of connected TVs.
While the smart TV market is just beginning to take hold, the Set-Top Box and the console remain popular options for users to connect their TVs to the Internet and access both subscription services as well as pay-per-view, download-to-own and rentals.
The report found that 4K video services – and an array of Internet of Things smart home devices – will place the network under additional strain. Hence, stakeholders will need to rapidly ensure that their networks are modernised and transitioned from legacy technologies such as IPv4 and CGNAT if they are to remain a viable player in meeting consumers’ expectations.
The report said industry collaboration between stakeholders is crucial to realising the potential of the Internet of Things; no single stakeholder is likely to be able to dominate thanks to the number of verticals within the home.
Juniper Research says that Security and Control elements of the Smart Home will reveal a service provider opportunity approaching $12 billion by 2018 as automation elements are added to service propositions.