News: Falling hardware costs behind strong penetration rates.
The growing interest in smart home products will drive home automation hardware to 1000% growth by 2020.
A report has found that hardware sold as standalone units rather than as part of a subscription package will increase from today’s 28 million to more than 300 million in five years.
More open approaches, such as Deutsche Telekom’s open platform, Qivicon, as well as partnerships and falling hardware costs are driving adoption.
According to Juniper Research, media and retail are also boosting penetration rates by raising consumer awareness.
The paper has also unveiled that due to the lack of consumer understanding of the smart home value proposition, retail is to play a crucial role.
The dominant home automation business model will not veer towards subscriptions until sufficient hardware is in place to build smart services on top.
Researchers have also found that major smart home players looking to reach the global market are failing to address local market demands, hampering their progress.
Research author Steffen Sorrell said: "The consumer still needs to be convinced: that will be the job of retail to solve, and that’s a question of educating both employee and consumer."