Revenues from smart home hardware and services are poised to climb to highs of $83 billion this year, according to market research firm Juniper. The number could more than double to highs of $195 billion by 2021 according to the research firm given the rate at which various segments are gaining traction. Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOGL) and Samsung are poised to be the biggest beneficiaries of the expected growth given their investments in the fast-growing space.
Home automation and smart appliances continue to experience exponential growth driven by tech giants investing in them as the race for new opportunities for growth heats up. Google has already made an entry into the space with smart speakers and Google Home. Amazon’s Echo speaker is another smart home device that continues to dominate.
Smart home hardware and services cover a gamut of categories including entertainment, healthcare automation and connected devices. It is for this reason that the fast emerging industry continues to attract investments from big tech companies that are looking for new opportunities for growth away from their core operations.
Juniper, however, expects the likes of Amazon, Apple, Samsung and Google to solidify their positions in smart home hardware given their already leading roles. The e-commerce giant for instance already boasts a robust cloud service that should give it an edge compared to other companies going forward
“The company has managed to maximize its value proposition for Alexa by partnering with a large range of complementary players in the market, whilst utilizing its own cloud platform to set Echo and Alexa apart from its competitors in terms of functionality,“ Juniper said in a statement
The research firm has however warned that revenue growth in the most mature segment, which is smart entertainment, could slow from current levels as other segments gain traction. Smart appliance and home automation devices are slowly gaining traction. Entry of the likes of LittleBits, Notion and iVee into the 2 segments according to the research firm will fuel growth going forward.
Apple was unchanged in Tuesday trading session having rallied by 0.10% to close the day at $119.11 a share. Google on the other hand was down by $1.17 a share ending the day at lows of $826.01 a share.