Smart TV and Smart Homes, still plugging

MUMBAI, INDIA: Smart TVs are fast becoming mass-market products. Gartner's 2014 consumer survey indicates that almost 25 per cent of U.S. households own a smart TV. In Germany, the figure is 32 per cent. Gartner forecasts that worldwide, 87 per cent of the TVs shipped annually will be smart TVs by 2018. This will result in such devices becoming very common in homes.

By 2018, connected-home services will cost 50 per cent 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, Gartner has augured.

Recent industry developments will bring management and control apps to smart TVs. However, the fragmentation of smart TV platforms makes it difficult for connected-home device manufacturers and app developers to focus on this "fourth screen" for access and management apps — except for media and entertainment devices. Nevertheless, as connected devices slowly gain momentum, and as an app presence on multiple screens becomes first a differentiator and then a must-have feature, smart TV apps for connected devices will reach parity with smartphone and tablet apps.

Among a number of predictions about the connected home, Gartner has also pointed that by 2018, 76 per cent of connected-home apps will be accessible from smart TVs.

"Despite the typically slow replacement cycle for TV sets, smart TV penetration is growing steadily," said Fernando Elizalde, principal research analyst at Gartner. "Smart TVs are already central to the provision of connected-home entertainment. These devices can serve as access points for the control and management of other connected home devices. Applications to control and monitor home security cameras, door locks, thermostats and other connected devices are just some of many connected-home applications that could work well through smart TVs."

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 research firm suggests.