Connected home devices the potential 'next big thing'

SINGAPORE: High-speed broadband, convergence, and home networking have all contributed to a new wave in the world of home connectivity. On the hardware front, the trend in the digital home is headed towards IP-connected home devices, signifying a new era in consumer electronics.

According to new connected home devices market data from ABI Research, connected home devices is potentially the “Next Big Thing” in the consumer electronics industry, with a global market value growing by a compound average of 23 percent annually over the next five years to more than $10 billion in 2014.

As ABI Research industry analyst Serene Fong observes, “Service providers view home networking not only as an avenue to create consumer loyalty but also as a new revenue-generating cash cow.” Instead of pure voice or data services, service providers now include content, applications, networking, and sometimes gaming and even energy management in their service offerings.

Interest in content sharing among multiple devices is growing as the world’s more privileged users explore the new realm of integrated browsing, communication and entertainment experience. Figures show that consumers are increasingly investing in digital devices to enhance the quality of their entertainment experiences. And the digitally connected home forms an attractive platform for bringing different industries together.

However, before we start to rejoice, there are still obstacles to overcome before we can enjoy true connected home experiences with multiple interoperable services and devices. As Fong cautions, “Service providers and equipment manufacturers should not rest on their laurels. Price, product quality and end-user experiences still remain intensely competitive and manufacturers will have to keep their customers satisfied before they can start hoping for real significant revenue growth.”