Sales of Connected Consumer Devices to Exceed 520 Million Units by 2022, Parks Associates Says

Sales of connected consumer devices — including networked cameras, security systems, and connected health devices — will exceed 520 million units by 2022, according to Parks Associates. The report, sponsored by Calix, presents the opportunities emerging from this wealth of residential devices and details strategies for service providers to operate in the smart home market in ways that leverage their strengths while avoiding the pitfalls of past efforts.


 “A future-flexible platform is a critical component for success in the IoT because smart strategies represent a long-term investment,” said Brad Russell, Research Director, Connected Home, Parks Associates. “While service providers are in an excellent position to deploy, maintain, and service the smart home, they generally do not want to develop and maintain their own proprietary solution to do so. But the market has matured where vendors are offering new turnkey solutions, and the right long-term partnership enables providers to serve the varied present and future use cases.”

Parks Associates research has found that more than 60 percent of US broadband households are interested in receiving some sort of information enhanced by augmented reality (AR) on a handheld device or headset, with the most popular being navigation information.

A separate report “Augmented Reality: Innovations and Lifecycle” notes that this interest persists despite low familiarity with AR—only 12 percent of heads of US broadband households are familiar with AR — a share that increases to 24 percent of millennials and 33 percent of Generation Z heads of household.

 “Interest in AR capabilities is high, and many people have unknowingly interacted with AR features through apps such as Instagram, Snapchat, Facebook Messenger, and iMessage, while Pokémon Go was the first AR mobile game to receive widespread attention and adoption,” said Kristen Hanich, Senior Analyst, Parks Associates. “While familiarity with AR remains low, consumers are interested in the capabilities that come with AR—42 percent of US broadband households are interested in AR-enhanced navigation applications and 36% are interested in AI-enhanced price comparison."

Most current residential use cases center on apps for smartphones and handheld devices, while AR head-mounted devices (HMDs) are more focused on enterprise adoption. Augmented Reality: Innovations and Lifecycle estimates the total installed base in the enterprise market was under 300,000 units at end of 2018, to reach 6.5 million units in 2025.

"Most enterprise applications of augmented reality are in the pilot stage, and we anticipate AR HMDs will continue to see headwinds in the enterprise space until 2025 when improvements in technology, applications, and execution trigger widespread adoption,” Hanich said.

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