Arthur D. Little: Smart Home revenues to grow by 12% a year until 2020
Capturing the Smart Home Opportunity – Room for Growth for Telecom Operators
London, 6 March 2013
Smart home related revenues will grow by 12% a year until 2020 in Europe, according to the latest report from strategic global management consultancy Arthur D. Little (ADL). Capturing the Smart Home Opportunity summarizes the key trends driving the potential for Smart Home solutions and provides recommendations for telecom operators looking to derive value from the launch of Smart Home services.
Homes – and the ways we live and behave in them – have changed dramatically over the past ten years and Smart Home services are poised for strong growth thanks to favorable societal trends, growing demand and acceleration in innovation. The market is still in an emerging phase and many large players, including telecom and utility service providers, appliance manufacturers and Over-The-Top providers such as Google are entering or testing the market.
ADL believes telecom operators are strategically well placed to expand their services and revenue streams thanks to their internet gateways, strong customer relationships and sales and support networks. However, they must act now to capitalize on the Smart Home opportunity.
“To cement their central position as the integrator of Smart Home services, operators should promote hybrid platforms with applications close to their core business as well as other services offered by external providers.” says Didier Levy, Director of ADL’s Telecoms, Information Media and Electronics (TIME) Practice. “If the market remains fragmented, there is a strong opportunity for telecom operators as they will be in a position to facilitate the digital life of their customers,” adds Dr. Karim Taga, Managing Partner and Global Practice Leader of ADL’s TIME practice.
As the Smart Home market is still emerging, telecom operators need to consider and prepare for various scenarios. Even though returns will materialize in the medium term, operators must act now and position themselves as digital life facilitators and strengthen their central position as the future integrators of Smart Home services.
The complete report, Capturing the Smart Home Opportunity – Room for Growth for Telecom Operators, can be downloaded at www.adl.com/SmartHome