Smart home spending to balloon to $100 billion in 2020

Consumer spending on smart homes is projected to reach $100 billion by 2020, a 133 percent increase from $43 billion this year, according to a Juniper Research report. This estimate includes “entertainment, health, energy and home automation.”

Entertainment services like Netflix and Spotify help boost these numbers and Juniper even concludes that home automation services have had a hard time reaching the mass market. However, it has not been without some successes. SmartThings and Nest are among some vendors who have found success combining their own hardware with subscription services. The number of ‘connected’ appliances in homes is expected to hit 20 million the same year, with voice control and wearables seen to play an important role in how users interact with smart homes.

While adoption rates of IoT technology may seem slow relative to the hype, the industry is still young and new estimates of revenue growth continue to come out all the time. The largest gains are coming from developed markets, primarily the US where smart home penetration is 3.7 percent, according to the latest data from Statista. The organization estimates annual growth in the US market will be about 28.2 percent, reaching $20.9 billion by 2020. The remaining top five countries in smart home spending are Japan, Germany, China and the UK. US smart home spending of more than $6 billion is greater than that of the other four combined.

Statista predicts that by 2020 there will be 24.45 million “active households” in the smart home market. The top two areas are home automation and security, which are expected to reach 24.45 million and 17.9 million households by 2020, respectively. The other areas of home entertainment, energy management and ambient assisted living will continue to grow, but not by nearly as much.