Connected home players should look to innovative business models like micro-transactions in the nascent sector, a joint report from Deutsche Telekom and Strategy Analytics has claimed.
The report has shed light on the European market in particular, predicting significant new revenues for those who succeed.
Across the continent, the connected home market will be worth up to €15.5 billion annually by 2019, according to the report authors.
Almost 50 million homes in Western Europe will have installed such technology in that timeframe, led by Germany, the UK, France, Italy and Spain.
The good news is that lot of the market value will equate to real growth, although choosing the right business model will be key, the report says.
It considers six that providers could rely on; these include hardware sales, loyalty, regulation and subscription-based models, product as-a-service, and service bundles.
However, business model innovation is needed and the report suggests gamification, micro-transactions and freemium as potential options that could be looked at further.
Further, the market value is forecast to move from one sector to another as the balance of power shifts between telcos, utilities, insurers, retailers and manufacturers, the report warned.Read more
Source: European Communications