The European Connected Home Market Welcomes Telcos
The U.S. market has set the example to follow. The main European telecommunication companies are closely examining the strong results of the American connected home market and have set themselves to refine their offerings and launches, seeking to stimulate a market with prospects for exponential growth.
Telcos such as Orange, British Telecom, Deutsche Telecom and Telecom Italia are entering the European connected home market –considered the world’s second largest, since there are a considerable number of safety and energy conscious households in European countries. The UK, Germany, the Netherlands, France, Switzerland, Italy and Spain are considered the major powerhouses for smart homes in Europe. According to MarketsandMarkets, the European connected living market, covering the entire ecosystem on the basis of products and services, is forecast to reach US$15.3 billion by 2020 at a CAGR of 16.5 percent from 2015 to 2020.
Moreover, these multinational companies have found the key value around which to structure their offerings so that they enable a rapid penetration in each of these countries: security. The statistics gathered on the continent reveal security systems as the main driver for smart homes to be massively adopted by the European consumers’ market. Another study by Parks Associates suggests that, indeed, security and convenience are key to entice users to begin acquiring home automation devices. Smart smoke detectors and door/windows sensors are also among the highest ranked individual devices.
More evidence supports this idea. Essence, in its survey conducted during the first six months of the previous year, revealed that the main factors linking the expectations of European consumers when purchasing a smart home product were energy saving (98% of them consider reducing energy consumption in the home a primary concern) and security: “intrusion protection is of paramount importance, especially with regard to both traditional alarms and the system’s ability to notify the homeowner and law enforcement and/or a central monitoring system of a breach”.
The connected living market and its byproducts is huge in the Old Continent, with the advantage that forecasts indicate that the residential offering will also experience stable growth. It seems that the time is ripe: most indicators show that all the conditions exist for the European market to begin displaying the same metrics that not long ago meant the sales takeoff of these kind of devices in America, where, by the way, the future expectations are still outstanding.
It looks like Europe has become a desirable market for the local divisions of the large multinational corporations that have already triumphed in North America. Now it’s time for Telcos and other companies that provide this type of services to act quickly, to address the doubts that may hinder the expansion of these type of devices, to position themselves to gain market share and repeat the success of their American counterparts.
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