A new report released by Juniper Research notes that global smart meter rollouts need support from regulatory authorities to move much further.
Without further regulatory support, especially outside Europe, the smart meter market will fail to play its vital role in the energy transition, as well as fail to reach its full potential for consumers to reap the benefits of the technology.
The report, Smart Home Devices: Business Models, Market Trends & Forecasts 2020-2025, notes that the smart metering market will grow slowly, at an average rate of 2% per year worldwide, compared to 12% for smart home entertainment devices.
The study states that there will be almost 13.5 billion active smart home devices by 2025.
By the end of 2020, active smart home devices will hit 7.4 billion.
The voice assistant proliferation means that the smart home will become increasingly dependent on discrete purchases, rather than holistic smart home packages that were common in the early days of the market. 94% of devices in use will be from individual purchases, with less than 50 million households globally having a smart home subscription in 2025.
Device functionality still trumps technology
Despite growing to 3.9 billion active devices in use in 2025, the research notes that smart home automation will only be used by 11% of households globally in 2025. These devices, primarily lightbulbs and locks, are not ones that consumers will need to replace on a regular basis.
Research co-author James Moar, said: “The value in this segment is being able to encourage use throughout the home; leading to a high level of value for each adopter.
“Outside of entertainment, adoption will come more from vendors making them the default option, rather than the technology encouraging replacement of utilitarian devices.”
For more insights, download the free whitepaper, The Smart Home Floorplan: 3 Key Device Strategies