As legacy business and service models erode in the face of emerging technologies, particularly in the home IoT sector, businesses need to make bold decisions to embrace emerging technologies and enable new user experiences to compete for a greater share of the consumer market. Decision makers at consumer companies must embrace change and not be held hostage to either legacy technologies and business and service models or the challenges of meeting consumer demand in nascent, unproven markets.
Key technologies, devices, and services across home Internet of Things (IoT), virtual reality (VR), wearables, over-the-top (OTT) video, content creation, esports, privacy and security, and advertising are at the heart of this transformation and form the basis of IDC’s latest predictions for the consumer market. It is likely that each prediction will touch most digital consumers in the coming years. The challenge for IT, marketing, and product executives is to compete effectively in this rapidly evolving consumer market by making technology and business decisions that anticipate the service models that will resonate with consumers across devices and usage environments. The adoption of artificial intelligence (AI), blockchain, and new tools for content creation and distribution and improved data security will be critical to meet the needs of the market in the years ahead.
Top 10 2019 Predictions for Consumer DX and Home IoT
The top 10 predictions for consumer digital tranformation (DX) and home IoT are:
- Prediction 1: In 2019, the proliferation of smart assistants will result in a year-over-year increase of up to 16% in smart home device sales worldwide.
- Prediction 2: In 2020, the average number of paid subscriptions per OTT video service subscriber will top three.
- Prediction 3: By 2021, more than 53% of smartwatches shipped worldwide will be cellular connected.
- Prediction 4: By 2021, 45% of hits in global music pop charts will be written by AI machines.
- Prediction 5: eSports revenue worldwide will reach $3 billion in 2021.
- Prediction 6: By 2023, 45% of digital consumers globally will use localized versions of digital ID key systems.
- Prediction 7: By 2023, more than 35% of all video advertising sales worldwide will be based on blockchain technology to combat fraud and arbitrage.
- Prediction 8: By 2023, over 1 billion people annually will visit at least one commercial location with a VR installation, with over 10% trying it, seeding interest in a VR purchase for the home.
- Prediction 9: By 2024, more than 70% of user interactions with smart home devices will be conducted via touchless interfaces.
- Prediction 10: By 2024, 17% of smart homes will leverage smartwatches as a primary data source to enable home automation.
Learn more about the 2019 Consumer DX and Home IoT Predictions
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Consumer DX and Home IoT 2019 Predictions web conference on-demand.
Research Director, Consumer Digital Transformation and Multiscreen Video