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The “smart home” market will be worth about $60-billion by 2017, from R25-billion this year.

A new report from Juniper Research reveals that this growth will be driven by strong growth within the smart home entertainment segment, along with contributions from other segments including smart monitoring & control and smart health.

The report “Smart Home Ecosystem: Connected Devices, Service Models & Revenues 2012-2017”, noted that there are many definitions that can be attributed to the smart home concept and these definitions have evolved over the years to include different facets of connected life such as entertainment, control, security and health.

With the role of broadband connectivity moving beyond its traditional use cases, new applications and enhanced services have emerged such as connected TVs, home automation systems and smart meters. These new and improved applications, connected via broadband (mobile or fixed) network systems, will increase the service revenue attributable to the area.

The report observes that no stakeholders or individual members of the smart home ecosystem can succeed in isolation; operators, content providers and vendors need to collaborate for a mutually beneficial business model.

Report author Nitin Bhas notes that, even though there are no single leaders within this space, service providers are coming forward and taking a proactive role.

“Cable operators and broadband service providers have a major role to play as they have an existing billing relationship with the consumers. Bundling other features into existing services enable them to be in a much better position within the pyramid, compared to other new entrants.”

Other players such as Apple, Google and Microsoft are also in a good position to replicate their success and will play a major role within the smart home.

The report finds that the smart home entertainment segment will account for 82% of the total service revenue by 2017, driven by North America and Western Europe.