Sales of smart home devices are expected to reach $1.4 billion by 2021, a 500 percent increase from the $90 million in 2016, according to new research from Ovum.
Ovum researchers Senior Analyst Francesco Radicati and Senior Practice Leader Michael Philpott said in the still unreleased "Smart Home Devices" forecast report that sales will be driven by the sale of security devices such as cameras, door locks and sensors, as well as utilities devices such as light bulbs and smart thermostats.
Overall, the authors believe the average home will have 8.7 devices, which brings the installed base of smart home devices to four billion.
Despite the massive growth of smart devices, Radicati told SC Media on Wednesday that security will continue to be a major issue. Smaller companies that are bringing their first products to market might not necessarily have the financial deep pockets, the expertise or the competitive imperative to build high-end security into their devices. As is the case in many start-ups, their goal will be to get their product to market and perhaps fix bugs in later versions.
According to the report, “there is a distinct gap between the number of smart home households and the take-up of dedicated smart home services. For example, on a worldwide basis, 15.5 percent of households will have adopted smart home security technology by 2021, but only 6.2 percent will be paying for a professional smart home security service.”
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