Tuesday, January 15, 2019

U.S. revenues from one-time support services will total $1.7 billion by 2022

New research report addresses problems facing connected devices owners

A new industry report from Parks Associates reveals just over 30% of computing and entertainment device owners report experiencing loss of wireless connectivity, identifying home network routers and streaming media devices most frequently as the source of the problems. Support Services for the Connected Home reports the percentage of households with a technical support subscription has held steady at close to 20% for several years, but revenues from one-time support services in the U.S. will increase to $1.7 billion by 2022 due in part to increases in the average number of devices, including smart home devices, in U.S. broadband households.

Devices with Highest Reported Incidence of Loss of Wireless | Parks Associates

“Consumers generally don’t want to pay monthly or annual fees, especially for technical support services, but as more people in the early majority acquire connected devices, it opens market opportunities for many different companies to provide premium support services,” said Patrice Samuels, Senior Analyst, Parks Associates. “Many entering the space now provide setup and installation services, and there is a strong opportunity to provide network optimization services.”

Support Services for the Connected Home estimates revenues from setup and installation services for computers, tablets, smartphones, home networks, and smart home devices will slowly but steadily decline between 2018 and 2022. Overall support revenues will increase, though, thanks to growth in subscription and one-time support services.

“Many devices are optimized now for easy setup and configuration, so consumers don’t see a lot of need for installation services,” Samuels said. “Consumers perceive a greater need for professional support when trying to connect with home network routers, smart speakers, and other devices in the home. This will help drive revenue for one-time support. Among professional support services, revenue from one-time support will experience the strongest growth over the next five years, with a CAGR of 15% through 2022.”

The report examines consumer support needs for new and emerging connected devices along with the various approaches to problem solving among consumers. It also details support service trends and forecasts the revenue opportunity for premium technical support services in the U.S.

Additional research includes:

  • Only 14% of smart home device owners report experiencing problems in 2018. This represents a decline from 28% of device owners in 2016.
  • Nearly 60% of broadband households are willing to purchase a comprehensive subscription support service for $9.99 per month. Comprehensive subscription support services include services like setup and installation support, troubleshooting technical problems, and maintaining device security.

For information about Support Services for the Connected Home, contact sales@parksassociates.com.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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