Home security is set to become the single largest growth sector for internet service providers. Ovum is finding that the connected home market will be huge."Home security provides the biggest medium term opportunity for service providers, but this opportunity requires a cohesive strategy in order to expand beyond the 5-10 percent of the market that buys traditional security and home automation services," the Home Automation report by NBN Co. stated.
Right now, Ovum estimated that about a million households in the country are already using remote security monitoring systems. There is still room for growth with an estimated eight million prepared to enter the domestic security market.
"Home security will be one of the "big ticket" market sectors that will help shape the nations connected landscape in the future," David Kennedy, research director at Ovum, said. "There is no single killer app in the future but rather big ticket categories such as security and energy control."
In the report Kennedy further stated, "Give"n the ongoing focus on energy efficiency as energy costs become a larger share of household budgets, this market too is sure to grow."
The market is highly competitive but the revenue opportunities are significant. The expected global Internet of Things (IoT) market is expected to grow over the next six years and reach a valuation of $7.1 trillion by 2020."The biggest challenge to growth is the nascent state of the ecosystem for connected home devices and applications. To grow this market the ICT industry must create innovative products that widen the appeal of connected home technology to the mass market," the report further explained.