MUMBAI/SINGAPORE: Asia's smart home market is expected to be worth US$115bn by 2030, when it will account for almost a third (30%) of global share, a new report has forecast.
A.T. Kearney, the global management consultancy, stated that China and Japan will drive much of the growth in Asia, although Singapore, South Korea and Taiwan are also expected to play a key role because of the number of high-income households in these countries as well as their high levels of data connectivity.
"Asia's socio-economic landscape provides a great opportunity for the region to be a global driver of growth in the smart home sector over the next few years," said Nikolai Dobberstein, Partner at A.T. Kearney India and a co-author of the report.
He told Telecom Asia that Japan is already among the top five global markets for smart home penetration and growth will continue as the country's ageing population seeks to install smart health and wellness devices.
"The opportunity in China is even greater with a phenomenal number of households seeing increased incomes, and a strong local manufacturing and technology ecosystem," he added.
The report noted that the idea of the connected, intelligent home is becoming a reality in Asia because of four major shifts that are accelerating market expansion.
Connectedness and intelligence is the first whereby advancements in technology and the processing power of smartphones are enabling homes to become more connected.
Big data and artificial intelligence are also improving the usability of smart home application "drastically", the report added.
The second shift underway in the region is increasing interoperability among products from different manufacturers, which is making home applications more useful for consumers.
In addition, key technology components are becoming cheaper and this rapid trend is making smart home applications more affordable.
Finally, the report identified new monetisation models as a driver of growth, such as smart home applications that can generate advertising revenue from their LCD monitor or connection to services.
Commenting on the findings, Sridhar Narasimhan, Partner at A.T. Kearney Singapore, said: "The smart home market presents significant opportunities for companies across the region.
"However, to succeed in the sector companies will require a combination of things including balancing a local and global strategy, evolving products quickly to be service-orientated, partnering with the right industry players, and coming up with a standardised way for different products to speak to each other."
Data sourced from Telecom Asia; additional content by Warc staff