Smart homes: a new reality with a myriad of opportunities
What was the longest period of time you were able to survive without internet connection? Some weeks? Days? Well, I bet it hasn't been longer than a few hours.
Circa 2020, the broadband access and home networking market have been growing exponentially in terms of bandwidth needs and the number of new home devices connecting to networks.
The ongoing investment in fiber networks is expected to drive a significant increase in subscribers over the next few years. According to Point Topic, by 2030 there will be 1.6 billion fixed broadband subscribers worldwide, an increase of 26 percent compared to 1.27 billion in Q4 2021.
This increasing demand for broadband access technologies will be influenced by a variety of factors. One thing is for sure, however: Home broadband will continue to be the main driver.
Smart homes are at the heart of our lives
Since the outburst of the pandemic, the landscape of home networking and broadband access has shifted. Household bandwidth demand is at all-time high and is expected to rise even further in the coming years given the proliferation of smart home devices and the increase in home broadband use cases.
It is no question, smart homes are at the heart of our lives.
Smart homes are among the most popular Internet of Things (IoT) applications besides connected cars, wearables, smart cities, smart agriculture, and the Industrial Internet of Things.
According to Investopedia “A smart home refers to a convenient home setup where appliances and devices can be automatically controlled remotely from anywhere with an internet connection using a mobile or other networked device.”
Smart home IoT devices
Over the last few years, smart home appliances have mushroomed in households all over the world. Smart gadgets make their way to every single room in our households. Installing such devices in their homes has allowed consumers to reap several benefits, including ease of use for daily tasks, increased security, and improved energy efficiency.
Smart speakers, smart thermostats, smart lighting, smart home security and smart locks are just a few examples of the gadgets that make up a smart home. According to an analysis of 41 million homes and 1.8 billion smart devices, each US home uses an average of 20.2 connected devices, 17.4 in Europe, and 10.3 in Japan.
Smart homes are here to stay, IoT home devices are going to evolve and gradually take over our traditional home devices. This market is expanding more and more opening up more monetization opportunities for CSPs to seize. Here is why:
Point Topic predicts that the global broadband access market revenue, which includes Access Concentrators and Customer Premises Equipment will grow at a compound annual growth rate of eight percent from 2021 to 2026. From 2021 to 2026, the overall market will grow from $15.9 billion to $23.4 billion. Staggering, right?
According to GlobalData, IoT home device investments will total $93 billion by 2024. The main drivers of this growth will be smart appliances and smart security. Sales of smart security systems are anticipated to account for 38 percent of all revenue from smart homes, followed by sales of smart appliances at 25 percent.
How ready CSPs are to seize this opportunity?
Nokia home device manager (HDM), with its carrier-class scalability, security, and manageability, manages millions of customer premises equipment over their entire lifecycle, remotely monitors IoT home devices and automates device management processes.
The smart home is evolving into a multifunctional location
Our homes are evolving into multifunctional locations. In the recent years, remote work and remote learning have gained significant importance. The work-from-home culture has emerged as the new norm and the preferred option for businesses around the world due to the significant cost savings, particularly on fuel, electricity, rent, and inventory. Nowadays, we can obtain a university degree from another continent or country entirely online from the comfort of our homes. E-fitness and sports activities are other activities that no longer require a gym pass. All you need to get an online coach is your home broadband and a smart device. Another use of the home includes home entertainment, which comes with a massive rise in video traffic related to streaming and online gaming that necessitates a high-speed internet connection. Since Covid, home health care and telehealthcare have also become more ubiquitous, which is a valuable way to connect with specialists around the world with just a few mouse clicks on your laptop.
These are just a few examples of the new uses for our homes, and it is crystal clear that they all require high-quality home broadband. Granting home broadband no more suffices, what's more crucial is providing customers with a guaranteed level of user experience and a guaranteed home broadband service level for different uses.
HDM allows CSPs to capitalize on the smart home opportunity. It assists home broadband providers in meeting service level agreements through continuous diagnosis and network performance measurement, as well as automated monitoring and fault resolution capabilities that help maintain ultra-high network performance.