As more sophisticated devices in the home generate their own data streams, a unique market is also emerging for that information.
According to a recent report from the research firm Guidehouse Insights, revenue for that data is projected to increase significantly over the next ten years.
The report, “Market Data: Smart Home Data Analytics,” examines the smart home data market over geographic regions, various business models and technology types. It makes a 10-year market forecast.
Guidehouse says the market for smart home data analytics is developing into “the most important corollary market to smart home devices.”
It notes that the two markets are feeding off each other’s success. New capabilities of analyzing the data are helping to drive the adoption of more devices. Smart meters, thermostats, fire detection devices, security devices, plugs, lighting and other devices are all benefitting from the trend.
Perhaps most significantly, the increase in device-level data processing, otherwise known as edge data processing, is expanding the range of valuable analytics capabilities while also decreasing the demands on off-site servers. Edge data processing is enabling devices in the home to collect granular level data, pair with one another and to interconnect with utilities to produce personalized performance in the home, such as the Nest smart thermostat.
Currently, utilities are using smart home data to support customer engagement, residential demand management and demand response programs. Mobile apps and web portals allow users to access information and enhance their customer experience.
Guidehouse also observes that more advanced solutions, such as artificial intelligence and automation, are increasing in popularity and taking customer engagement to another level.
Guidehouse projects the increased adoption of smart home technology combined with the falling cost of data analytics and storage to drive robust growth in the market. The company projects a combined annual growth of 17.8% in the global market, from $5.5 billion in 2020 to $24.1 billion in 2029.