650m Smart TVs by 2017
The number of residential TVs connected to the web via different platforms such as Blu-ray players, set-top boxes and consoles, or via built in wireless or Ethernet connectivity, will reach almost 650m million by 2017, according to a new report from Juniper Research. Smart Home revenues will reach almost $60bn (£47bn) by 2017, up from $25 billion this year.
The report, Smart Home Ecosystem: Connected Devices, Service Models & Revenues 2012-2017, finds that Smart TVs are becoming mainstream amongst consumers, similar to smartphone and Tablet adoption. Even though the replacement cycle of TVs is longer than for, say smartphones, the report forecasts strong growth over the forecast period.
It also finds that there is an increasing demand from consumers for new video content services from so called OTT (Over The Top) providers such as Netflix, LOVEFiLM and YouTube. The revenue and profitability of traditional entertainment services within the home has attracted many new players including content aggregators and platform providers such as Apple and Google.
This consumer demand for connectivity and content has influenced the smart home entertainment segment in a major way along with the - integration of social media, multi-screen strategies and applications. Report author Nitin Bhas noted that as the cost of these connected devices fall over the period of forecast, the value of connectivity will rise.
"The consumer electronics industry along with key players, such as the content aggregators and platform providers, needs to clearly define this device ecosystem and start working towards driving this phase of growth and turn it into a revenue opportunity", says Bhas.
There are more details about the report, together with a free Smart Home - Connected Life whitepaper, on the Juniper website.