The only report of its kind, this ‘scorecard’ evaluates the top smart home vendors on criteria using concrete data and metrics, including vendor market share, solution breadth, regional presence, regional growth, financials, reputation for innovation, and other benchmarks.
There are hundreds of vendors around the globe that make and sell smart home equipment. The 23 vendors profiled in this scorecard—Aeon Labs, Amazon, Belkin, Centrica, Cree, Elgato, Essence, Everspring, Fibaro, First Alert, Honeywell, Insteon, Koninklijke Philips N.V., Koogeek, Nest, Netgear, Ring, Samsung, TP-Link, Withings, Wulian and Xiaomi —were selected because they are some of the top names in smart home today. The purpose of this scorecard is to analyze the relative strengths of these vendors.
Supply to the smart home market remains highly fragmented. Globally in 2016, there were about 70 manufacturers (including manufacturers of connected appliances) with revenues exceeding $10 million. IHS Markit identified 36 manufacturers with revenues of $5–10 million in 2016; and about 270 with less than $5 million in revenues. This equates to fragmentation on two levels. First, the number of manufacturers competing in the smart home market exceeded 400 as of 2016. Moreover, the breadth of solutions offered varies greatly by manufacturer.
Overall, the smart home is a complex market with a diverse group of suppliers all leaning on individual strengths to win market share. Consolidation is expected to ramp up in 2017 and 2018 as larger suppliers look to make deals with challengers and established players that also have high momentum; which will result in a fluctuating leadership and changes in the overall supplier landscape.
This Scorecard addresses the need in the market for vendor evaluation based on objective data and metrics. This approach eliminates subjectivity and ensures vendors are assessed accurately and fairly. The IHS Markit methodology produces scores that tell a nuanced story of the vendor landscape, conveying each player’s strengths and challenges.
Based on actual data and metrics, the scores are in two categories:
- Market presence, which IHS Markit defines as a vendor’s position in the market, including size, brand recognition, regional presence, and financials. Scores in this category take into account each vendor’s market share, financials, solution breadth, regional presence, and brand strength.
- Market momentum, which IHS Markit defines as a vendor’s potential, including growth, reputation for innovation, and development of next-generation technologies. Scores in this category take into account each vendor’s growth position, technology innovation, and mobile app rating change.