Connected living’ market set to be worth $1 trillion globally by 2020

•  UK share could be worth £30 billion or around 5% of the total

The ‘connected living’ market - new technology that's changing how people connect with each other and businesses - is projected to be worth $1 trillion globally and £30bn in the UK by 2020, according to new PwC analysis.

The analysis looks at six sectors - connected home (e.g. smart meters), transport (car sharing platforms), work (networking platforms), education (e-learning), health (M-health) and entertainment (online music sharing platforms) – all considered to represent a range of touch points in people’s everyday lives. It explores the megatrends collision between changing demographic and social patterns and today’s vast technological breakthroughs which are shaping how people live more connected lives. 

Richard Boxshall, senior economist, PwC, said:

“Over the next five years, our analysis highlights the significant revenue growth potential for the six connected sectors. Up from around $215 billion last year, the ‘connected living’ market will be worth $1 trillion globally by 2020, representing 29% average annual growth over the period. In terms of the UK, we expect its share could be worth around £30 billion or 5% of the total.

“The thinking about connected living inevitably focuses on technology, but that perspective should not crowd out the human factor. Changing attitudes and preferences are every bit as decisive as the technology platforms in shaping our future. In fact, it’s more likely to be people, not technology, that are the real disruptors.

 “Our PwC survey of over 2,000 UK consumers found that technology is right at the heart of the day-to-day lives of many people, with 30% of respondents remaining connected all the time, while for others, technology is only a means to an end.

“So we need to look at what’s driving this choice and what it means for business now and in the future.”

How the disruption to business manifests itself varies from sector to sector. Certain industries have already experienced considerable upheavals to their traditional business models. Entertainment and media, for example, has been transformed by digital platforms that deliver content to consumers in the form of streaming and on-demand services that by-pass traditional channels. While other sectors – such as services for the home – look little different today to how they have operated for decades. 

Richard Boxshall, senior economist, PwC, concluded:

“Change is coming to all industries. As we reach what may be tipping points for those sudden and decisive changes, businesses need to prepare for the new, more direct relationships with consumers – and develop capabilities and skills that look very different from those they operate with today.

“We’re already seeing many tech-enabled new entrants disrupting traditional industries and markets, so there is huge potential for growth in the sector and it raises questions to who will be best placed to take advantage of the opportunities connected living brings.”

Ends

Notes:

1. More details on the 'connected living' market will be available from Monday 16 November at www.pwc.co.uk/mylifeconnected
2. A description of the methodology behind the revenue projections is available on request.

 

Gill Carson
PwC | Media Relations
Mobile: 07837 285466
Email: [email protected]
PricewaterhouseCoopers LLP
twitter: @gill_carson
http://www.pwc.com/