Gartner Research

Market Trends: Choose a Functional Business Model for the Connected Home Market

Published: 15 April 2016

ID: G00296565

Analyst(s): Martin Reynolds , Tracy Tsai


The connected home market will challenge traditional business models, as it requires new layers of partnership, ownership and revenue sharing. Product managers need to have the right business model to ensure sustainable profitability.

Table Of Contents


Market Trend

  • By 2020, More Than 10.5 Billion Home Things Can Create Multiplied Value to Multiple Stakeholders
    • Step 1: Identify Revenue Streams
    • Step 2: Examine Your Value Propositions
    • Step 3: Build the Path to Value
    • Sell Business Outcomes and Deliver the Solutions

Contrarian View

  • No Business Model Can Justify the High Cost of Integration Solutions

Vendors to Watch

  • Amazon
  • Apple
  • AT&T
  • Google

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.