The connected living market is set to grow to more than $730 billion by 2020, presenting "huge" opportunities for Telco and and IT vendors, according to analysts.
Connected Living is defined as a world in which consumers use many different devices to experience compelling new services that integrate video, voice, and data services to provide access and ubiquitous connectivity.
Analyst firm Frost and Sullivan predicts that by 2025, the rise of connected living will see 3.7 billion smartphones, 700 million tablets, 520 million wearable health-related devices and 410 million smart appliances in the connected person world.
The connected worker world will see 90 million IP Telephones, 400 million laptops and more than 60 million unified communication platforms.
Frost and Sullivan analyst, Head of Research, ICT, A/NZ, Audrey William, said mobility and Cloud computing were two pillars of growth that had brought about significant changes.
"Cloud computing, Big Data, mobility and low cost sensors are driving the internet of things and connected industries, and the internet of things is forcing transformation and innovation across the connected home, connected workplace and connected city.”
The connected home incorporates home automation; smart meters and smart thermostats, intelligent lighting, remote monitoring and control as well as home health, remote diagnostics and wearable health devices.
William said, Australian players like Telstra and other telecom operators had already offer bundled connectivity and entertainment services.
"While unified communications vendors like Microsoft Lync, Cisco, Mitel, Alcatel Lucent, Shoretel, Interactive Intelligence and Avaya are bringing it all together offering robust and rich solutions that enable the connected worker to experience seamless transitions from various applications to various devices every day," she said.
"While the ecosystem of players is complex, there is no denying that collectively, the market potential is huge and presents immense opportunities for the telecom operators and ICT vendors” notes William.
Further, the "connected work" encompasses mobility (Mobile email, enterprise mobile apps, people locator, bring your own device), communication (unified messaging, remote desktop access) and networking (web-based project collaboration tools, cloud-based file sharing services).
While the "connected city" comprises eGovernance, eCitizens, smart transportation cards, e-learning, mobile banking and digital classrooms, remote education services as well as digital libraries.
Frost and Sullivan forecasts the connected the connected city will contribute the largest percentage at 54 per cent, equating to an estimated market potential of $392.94 billion, with smart governance and education services making up 50 per cent of growth in this segment.
Connected work will comprise 31 per cent, contributing $228.44 billion.
While the connected home chips in the remaining 15 per cent at $111 billion.
William said the value chain of smart solutions to service all the components of connected living was extremely fragmented with no clear “one stop shop” solution provider providing end-to-end solutions.
"There are many players, ranging from module/component providers to device vendors to network and platform providers to system integrators. Within these groups are big name players such as Sendum, Gemalto, Apple, Samsung, Telefonica, AT & T, Cisco, SAP, Oracle, IBM and Accenture."Read more: The best Android smartphone of 2014: Samsung vs HTC vs Sony?