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Connected homes

What is the future of the Connected Home in 2025?

On Tuesday 17 May, PA experts and Connected Homes visionaries from different sectors met to explore contrasting future world scenarios and discuss their impacts on business strategy today. Digital products and services are already transforming our homes, but where will we be in 2025 and what are the implications for business today? Will the future be one of cautious connectivity or ubiquitous acceptance? Will the market be fragmented or dominated by a few big players? What should businesses be doing now, to pursue new business and monetisation options and to prepare for alternative futures?

PA’s scenario planning tool FutureWorlds reveals four potential scenarios based on provocative thinking into current drivers and behaviours that will shape the future connected homes market.

Watchful world

Fragmented adoption in a networked ecosystem: A well-integrated set of Connected Home products and services are offered by a mix of dominant and niche players. Consumers are, however, cautious due to monitoring, intrusive behaviour and the prevalence of cybercrime. The home is regarded as a “castle” to be secured and protected from external threats, with privacy and data closely guarded.

Watchful World

Hobbyist world

Fragmented adoption with disconnected islands of solutions: Several products and services are targeted at the home, but adoption is fragmented with consumers choosing specific solutions from niche  suppliers to address very specific needs. There is limited integration between products; the burden falls upon consumers to integrate solutions themselves resulting in low appeal to the mass market.

Hobbyist World

Connected life world

Ubiquitous adoption in an open and integrated ecosystem: A comprehensive and well integrated ecosystem of Connected Home products and services has achieved widespread consumer adoption and market penetration. They deliver a more secure life, along with greater control and efficiencies. Failures can occasionally occur, but on the whole cybercrime is contained. Much of the technology has blended into the ambient environment and operates unobtrusively.

Connected World

Brand believer world

Ubiquitous adoption with locked-in and brand leading proprietary solutions: Take up of Connected Home products and services has been widespread and enthusiastic, but the market is dominated by a few main players who have used their scale to create proprietary solutions. Big Brand products are delivered as highly automated and joined up solutions creating a seamless and compelling experience. The emphasis is on “lock in” and it’s difficult to switch between suppliers.

Brand Beliver World

To find out more about these contrasting future world scenarios and their implications for different business sectors today:

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