5-Year Outlook Good for Connected Consumer Device Market

A recent report on emerging technologies and trends suggests $90 Billion market by 2020

Consumer electronic devices have historically represented stand-alone objects functioning in isolation. This is rapidly changing as high-end consumer appliances, digital equipment, and assets as well as many lower cost devices gain connectivity through embedded computing and communications.

A recent research report from Mind Commerce indicates that the global market for connected consumer devices will reach $88 billion with a CAGR of 14.4% by 2020. This marketplace is expected to explode as the trend towards machine-to-machine (M2M) communications and Internet of Things (IoT) related devices, applications, and solutions is poised to rapidly expand in the consumer sector.   Many industries are impacted by this growth including consumer electronics, entertainment services, energy management, security, healthcare, sports and fitness.

The report defines a “Connected Consumer Device” as any device in physical and software form that is used by a consumer user for various purposes including entertainment, news, information, and general lifestyle enhancement. Most of the current suppliers in connected consumer devices space are large manufacturers who have years of professional experience in automation, networking and device manufacturing.

Key topics in the report include definitions and descriptions of the range of low frequency network technologies that consumer devices can use to communicate with each other; the report suggests the market has no dominance or availability of single network technology that fits all. This is one of the prevailing characteristics of this industry, and a reason that different alliances such as ZigBee, Z-wave, Insteon, MoCA and DLNA, and many other small groups continue to emerge, each claiming their standard is dominant in this industry. The common practice is manifest in a growing number of alliances of hardware, software and end device providers, and solutions under one umbrella and work in coherence with each other to generate dominance on the market.

Another important observation is the increasing demand for low power, low energy usage with longer battery life radio devices. This is a critical factor which may be responsible for growth or hindrance of market acceptance for connected consumer devices. Sensors are the most affected component because of this demand. The growth of sensors in connected consumer markets is deeply dependent on development of low power, low energy requirements with longer battery life of sensors.

The report also finds that certain industry verticals will realize substantially better growth than others, due to structural differences that will allow product developers and sales channels to better exploit the value of distributed devices.

One emerging key market segment is the Home Automation arena, also known as Connected Homes. In early Home Automation process most devices were built individually and were installed and operated by their respective manufacturers, and hence there was a lack of integrated solution and centralized management of Home Automation. This issue is somewhat solved in IoT based Connected Home where a software platform or a network protocol alliance helps integrating devices and products that are registered with them.

However, products and devices of different alliances are yet not able to connect with each other also some products run on android but not on iOS or any such other platform and vice versa are making trouble for centralized control. Also products in security category may need different interface and software program than to products and devices in entertainment segment making it difficult to manage all in one. Companies such as Wink are developing platforms that go for all in one and will need some time to prove.

Mind Commerce recently released a related report with more detail on Home Automation and the Connected Home. The report covers automation and connection of home electronics and appliances, utility meters, thermostats and sensors within the home using remote access from the internet. Connected homes also include intelligent home that controls lighting, air conditioning, and security systems such as door locks and safety locks.

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Global Connected Consumer Devices: Key Trends, Opportunities and Market Forecasts 2015 – 2020
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  • An evaluation of Connected Consumer Device ecosystems, market drivers, constraints, and opportunities for value chain constituents
  • Includes market strategy analysis, competitive assessment, and forecast for 2015 to 2020 for each major industry vertical
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Mind Commerce is the trusted source for research and strategic analysis focused on digital technologies and the telecommunications industry. Reports provide key trends, projections, and in-depth analysis for infrastructure, platforms, devices, applications, services, emerging business models and opportunities.