ISPs Will Be the Early Winners in the Battle for the IoT Home Gateway
The hype surrounding the Internet of Things (IoT) in the home is growing rapidly, according to Gartner, Inc., as the battle for the IoT gateway in the connected home gets underway.
"The numerous IoT applications for the home include smart stoves, which tell you how to cook a meal and provide recipes; and smart washers and dryers, which help you determine the optimum time to run a load of laundry," said Paul O'Donovan, principal research analyst at Gartner. "Add to that smart lighting, which can be operated remotely and programed to dim or turn on or off at specific times; thermostats, which can have your living space at the desired temperature when you walk in the door; and entertainment devices, which can stream programming to your display whenever you want to watch it."
As home appliances have increased in smartness, cellular and cable connections improved, and pricing declined, the desire or ability to monitor and control the home as a holistic platform of devices and appliances has emerged.
"Many IoT applications are triggered by sensors and need data management, but there is no single IoT gateway to the home," said Mr. O'Donovan. "As Internet-connected homes become increasingly smarter, the gateway is becoming the "center" for connecting the different devices and home appliances to make the management of the ecosystem happen."
The home IoT gateway market is expanding rapidly. The number of smart connected homes is expected to grow from between 100 million and 200 million homes now to between 500 million and 700 million homes by 2020.
The lack of a good business model or the immaturity of home IoT products has not stopped gateway makers from trying to develop the market to grab share in the home IoT opportunity. Cable companies, Internet companies, alarm companies and mobile phone operating system providers are actively creating platforms and ecosystems in an attempt to break into the market.
Gartner predicts that the most successful home gateway provider will develop a system that seamlessly integrates with nearly any vendor's IoT application and is relatively painless to the homeowner. A system that locks homeowners into one specific operating system limits their opportunity, as consumers will want to exercise their preference in terms of the IoT products they choose.
Multiple home platforms have emerged, designed to capitalize on or create an ecosystem of smart home things that the gateway must connect to. Some of the platforms are beginning to open up, or at least work with the others to minimize the different number of platforms that the consumer and the gateway must deal with. Some smart home solutions are even taking advantage of this void and creating hubs that act as a central command system for the smart home devices, using multiple communication protocols to connect to all of the smart devices in the home and communicate to the world through the IoT gateway.
"As the IoT gateway market emerges, ISPs will be the early winners in the battle for the home gateway, provided they develop solutions or partner with hub manufacturers. The mobile phone providers will gain a smaller part of this market, but ultimately the cellular model will not have enough bandwidth to compete with the ISP solution. Longer term, there will need to be an integrated device, whereby the gateway is also the hub, or integrated hub and gateway solutions will be needed," said Mr. O’Donovan.
More detailed analysis is available in the Gartner report "Market Trends: The Battle for the IoT Gateway in the Connected Home."
IoT trends will be discussed at Gartner Symposium/ITxpo 2015, October 4-8 in Orlando, Florida. More information on the event is available at www.gartner.com/us/symposium. Members of the media can register for the event by contacting Christy Pettey at email@example.com.
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the world's most important gathering of CIOs and other senior IT executives. This event delivers independent and objective content with the authority of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on these events to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency.
Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_inc and using #GartnerSYM.
Upcoming dates and locations for Gartner Symposium/ITxpo 2015 include:
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.