Australian households are in the middle of an Internet of Things at home (IoT@Home) revolution, with more than 40 per cent of households now having at least one IoT@Home device, up from 29 per cent in the previous year, according to research firm, Telsyte.
In its Australian Internet of Things @ Home Market Study 2017, it found that the average Australian household in 2017 has 13.7 internet connected devices, with this number set to balloon to 30.7 by 2021, with 14 of these being IoT@Home devices.
It also found that by 2021, in total, Australian households are expected to have 311 million connected devices, of which nearly half of these are expected to be new IoT@Home devices.
Telsyte managing director, Foad Fadaghi, said the collective value of the IoT@Home market in Australia will be $4.7 billion by 2021, a sharp rise from the $377 million it presented in 2016, presenting the channel with opportunities.
“The Internet of Things at home will touch many industries as businesses use smart automation to create new products and services for their customers,” he said.
Specifically, intelligent features that use cloud-based machine learning to provide lifestyle benefits which go beyond self-monitoring and user initiated outcomes will be the key to attracting and maintaining customers.
However, according to Telsyte research, despite the expected rapid adoption, barriers such as concerns around cyber security and privacy will still need to be overcome. The study stated that half of Australians indicated that they are concerned about security when “everything will be connected to the Internet in the future”.
In addition, IoT@Home is also expected to be a new battleground for telecommunications companies, retailers, energy suppliers, insurance companies and category specialists.
This is because they will all seek to differentiate themselves in price competitive industries, against the backdrop of widespread rollout of nbn services, online retail competition and rapid digitisation of consumer lifestyles.
“The challenge will be to take households on the automation journey while handling privacy, security and upfront costs concerns," Fadaghi added.
Recent findings by Gartner also showed that IoT services are set to be a big revenue driver for partners in 2017, with the market set to hit 8.4 billion devices globally this year.
Gartner predicted the market to grow at an increase of 31 per cent on last year, boosting spending on endpoints and services to almost US$2 trillion.
The consumer segment is the largest user of connected things with 5.2 billion units in 2017, representing 63 per cent of the overall number of applications in use.
"Aside from automotive systems, the applications that will be most in use by consumers will be smart TVs and digital set-top boxes, while smart electric meters and commercial security cameras will be most in use by businesses,” Gartner research director, Peter Middleton, said previously.