By 2018, connected-home services will cost 50 percent less than they do now
Price could be a major factor in low adoption rates of connected-home services. Although current pricing plans offered by providers are relatively reasonable, they are additional costs for consumers on already stretched telecommunications budgets.
Providers of connected-home services that charge monthly service fees may struggle to compete with those that do not, such as home energy management providers like Hive in the U.K. and Nest (now owned by Google).
Additionally, electronics stores are creating in-store connected-home areas where consumers can get expert advice on creating their own connected-home platforms. In order to offer similar experiences to their customers, service providers would need to invest in both retail space and staff education.
"The connected-home market is showing the usual signs of nascency: low penetration, high interest mainly among technology enthusiasts, and high prices," adds Jessica Ekholm, research director, Gartner.
"For mass-market adoption, prices need to come down, but lowering prices won't suffice on its own.
"The current lack of interest from most sectors of the public also indicates that people do not see the immediate advantage of connected home services.
"Embracing a strategy that offers in-store expert advice could therefore be the way forward."