Parks Associates announced new research indicating in-app purchases could generate new revenue sources for smart home systems. The research firm finds that between 57 percent and 73 percent of likely smart home buyers are interested in purchasing upgrades or additional equipment through the app in their smart home system, depending on potential system features.
“Mobile apps are transforming all aspects of the connected home, and the app in a smart home system will be prime real estate for communicating with subscribers and promoting new services and features," said Stuart Sikes, President, Parks Associates.
“We believe the market for connected home technology will continue to grow at a rapid pace, especially as people become more familiar with connected lifestyle products,” said Jim Johnson, EVP and general manager at iControl Networks.
Highlights of Parks Associates’ connected home research include:
Total North American mobile app revenues will exceed $27 billion in 2018, fueled mainly by in-app purchases and in-app advertising revenues.
- 80 percent of U.S. wireless service subscribers own at least one smartphone.
- 46 percent of smartphone owners began using one for the first time within the last two years
- 37 percent of U.S. broadband households access the Internet at home using a mobile phone.
“Partner Programs with app developers will be essential in moving the connected home market forward,” Sikes said.