Proving the Business Case for the Internet of Things

Nearly 80% of operators targeting home automation opportunity: Infonetics

Iain Morris
July 24, 2014
 
More broadband providers are jumping on the home automation bandwagon, according to a new survey by Infonetics Research that shows levels of operator interest in the home automation market are soaring.

According to the research, an overwhelming 79% of operators are currently offering home automation services or planning to do so by the end of 2014, with the remaining 21% planning to enter the market by the end of 2015.

“For vendors of home automation equipment and software, service providers represent a high-growth market,” said Godfrey Chua, directing analyst for M2M at Infonetics. “Where home automation services were previously limited to the North American and European markets, service providers around the world – with access to tens of millions of broadband subscribers – are now testing the waters, driven by the desire to increase average revenue per user [ARPU].”

“Vendors will have to ensure their equipment and software can be tied into existing CPE and back-office management systems, and that their products adhere to the stricter guidelines expected by major service providers,” said Chua.

According to Infonetics, some 64% of survey respondents said that increasing ARPU is a driver for deploying home automation services.
In other findings, the pricing of home automation equipment headed the list of respondents’ deployment challenges.

Infonetics also noted that home security and energy management services are seeing early popularity with customers and will be key to expanding to other services around the home.

Meanwhile, Wi-Fi remains the main technology for connecting devices in the home.
 
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