The evolution of the smart and connected home has created new revenue growth opportunities for consumer electronics vendors and telecom service providers. According to the latest worldwide market study by Berg Insight, the number of smart homes in North America and Europe reached 45 million in 2017.
Within the telecom sector, the ongoing shift to software-defined infrastructure — where IT workloads run virtualized or containerized on industry-standard hardware and software platforms — is happening at an unprecedented pace.
By the end of the first half (H1) of 2018, global TMT values had reached $371.1 billion and 1,693 deals, representing a 19 percent share of global M&A. The strong results nearly surpassed H1 2015 record high of $383 billion, which represented a market share of 21 percent, according to Mergermarket.
The ubiquity of broadband connectivity, development of smart sensors, and the decreasing costs of devices have already made it possible to offer aging-in-place, chronic disease management, and post-acute care services in smart homes.
Mobile communication service providers across the globe have been eager to uncover new sources of subscriber revenue as over-the-top (OTT) apps continue to disrupt their traditional business model offering voice calling and text messaging.
In markets such as North America and Europe, traditional pay-TV operators have jumped into the OTT market to improve subscriber churn by providing less costly video service. Can they compete with the innovative OTT providers? Is this already a lost cause?