Kickoff for the second Digital Revolution

One in five American households to be smart homes by 2020

New York/London, 26.10.2015 – The first digital revolution originated from the internet. With the emergence of the Internet of Things (IoT), we are now moving rapidly towards the next major Digital Revolution. The digitization and networking of multiple devices in private households will change our daily lives. Almost every product of every industry has now the chance to impact this market. The Statista Digital Market Outlook (DMO) investigates this trend, examining the exciting potential of the coming years.

The idea of Smart Homes first found real traction in the luxury segment, by now the reversal of making smart home mass appealing can be recorded. In 2015 the smart home market is worth 9.793 billion USD worldwide. By 2020, the value of this segment will reach 42.987 billion USD. The market leading country – United States of America – accounts for more than half of the total revenue with 6.022 billion USD in 2015. There is a significant gap at this end of the market, with Japan being the next closest nation generating 729.0 million USD in revenue, and Germany following in third with 600.2 million USD in revenue. The United Kingdom sits fifth in the global ranking, with estimated revenue for this year of 303.5 million USD.

As the market volume is rapidly growing, the occupier of an average smart home can expect to spend less money each year for their digital homes. For example, the average single British smart household will spend about 1,738 USD in 2016 for their digital home, but in 2020 the average costs associated for a smart home in the United Kingdom will drop to around 1,234 USD instead.

Big Energy Companies worldwide have already noticed this trend and are now working towards making the smart home affordable for everybody. A new market has been born, and it will be exciting to see who will be best able adapt and emerge as the leader in this new and exciting space.

The outlooks for the coming years are promising. The strongest growth rates worldwide are largely expected in 2017, and the market saturation point is not in sight. By the year of 2020 one in five American households will be a digital home. In China, the revenue of the smart home market is going to grow tenfold.

The potential of this market is huge, the biggest question that remains, is who is going to be the pioneer for the average intelligent home.