The smart home market is about to erupt, four giants dominate the future market

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China board trading network news:

The smart home market is about to explode rapidly. Studies show that the sales of related hardware and services will increase by more than one-fold in the next five years, with the fastest growth in automation and home appliances, and forecasts for Amazon, Samsung Electronics, Alphabet and Apple will become the "four kings" who dominate the smart home market.

According to Juniper Research’s latest research, smart home hardware and services, including entertainment, automation, health care, and networking equipment sales, will increase from $83 billion in 2017 to $195 billion in 2021. Home automation and smart home appliances will be the two fastest growing areas in the next five years, led by Samsung Electronics, Bosch and General Electric.

After the Juniper Research evaluation included product development, industry partnerships, success levels of the business model, and innovation levels, the current smart home market was dominated by four companies, ranked in order of importance by Amazon, Samsung, Alphabet, and Apple. Juniper expects this. The “four kings” are based on the existing ecosystem, and their market position will be further consolidated in the future.

Among them, Amazon used Alexa to connect cloud services and leverage its e-commerce market forces to generate more revenue. The innovative model allowed the company to take the lead. Researchers point out that Amazon has collaborated with many complementary companies and has used its cloud platform to separate Echo and Alexa functions from its competitors, successfully maximizing Alexa’s value proposition.

The study also found that entertainment is the most mature area in the smart home market. With the adoption of new and emerging smart devices and automation, smart entertainment growth will slow down. By 2021, the market share of Internet service companies such as Netflix and Amazon will drop from 70% in 2017 to 50%. At the same time, growth areas such as monitoring & automation will be disrupted by new startups such as LittleBits, Notion, and iVee. These rising stars will challenge existing large companies by developing innovative products.

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