The business of home automation is enabling the internet of things

Gigaom

If we think about the homes that have a broadband connection today as the total addressable market for home automation, the home automation market size turns out to be around $8.8 billion at $100 spent per home or $880 billion at $10,000 for example in the U.S. If we are a little more conservative and say that only those broadband subscribers who use smartphones are targets, the range turns out to be about $5.63 – $563 billion. In order to capture this opportunity a number of business models have come into play. While these are not new business models, it is interesting to see how this opportunity is being captured.

The Free approach: Here home builders are embracing the the art of negative margin by giving away connected devices for free as part of home sales. In doing so home builders appear progressive and invested in home innovation with the…

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