Global technology research company Technavio has released a new report that states the smart home market in the UK is forecast to reach US$6.94billion in revenue by 2019.
The Technavio report states that 24.3 million households, accounting for 91% of total UK households have internet service provider connections. It adds that high consumer awareness on automation and advanced technologies related to the smart home is driving initial growth in the market.
Other factors contributing to growth in the smart home market in the UK is the increase in the electricity bills on an annual basis. A release by the research firm explains that, on average, households spend US$2,000 on electric bills.
Advances and improvements is network connectivity and hence, increased bandwidth has helped consumers to enter the smart market.
The research company said in a statement that the smart home market in the UK is dominated by Wi-Fi enabled smart home devices. However, BLE-based connected home devices are starting to gain popularity and traction in the market.
The nationwide smart meter rollout, under which every household in the UK is expected to have a smart meter installed by 2020, is also boosting growth the smart home market in Britain.
Market segments, challenges, drivers and trends
The Technavio report states that the key segments in the smart home market in the UK are residential and commercial buildings as well as government organisations.
Key challenges stifling growth include high upfront costs of smart home systems to reach mass market and lack of standardisation and interoperability.
The report also highlights the following key trends in the smart home market in the UK – innovation of smart elevators and smart detectors and ambient intelligence through the Internet of Energy in traction with big data analytics and the smart devices.
The company's release notes that in terms of the online activity, the UK stands first than any other nation in the world. It concludes by saying that convenience, security, accessibility and efficiency of smart home technology are the primary driving forces behind the forecasted CAGR of 24.39% over the next four years.