A team of analysts at Barclays suggests that the booming connected home market represents “one of the most significant investment opportunities over the next several years.” The Wall Street bank indicates that as consumers become increasingly attracted by voice controls and appreciate the savings generated from smart gadgets, the connected home industry could be worth several hundred billion dollars by 2020. (See also: Amazon's Alexa Will Approach 71% of Smart Speaker Market: eMarketer.)

Barclays analyst Manav Patnaik highlights Alphabet Inc.’s Google (GOOG), Amazon.com Inc. (AMZN), Apple Inc. (AAPL) and Microsoft Corp. (MSFT) as major players in the space attempting to build their own ecosystem of smart house products. Other companies that sell gadgets used across the different platforms developed by the major tech giants are also set to gain from rapid adoption of smart home tech.

Home Automation Everywhere

While smart homes were once limited to wealthier consumers, new products such as the Apple HomeKit have eliminated the need for expensive, highly specialized systems that are required to be installed in homes. Consumers now only need an affordable hub and smartphone to add voice controls to gadgets such as light bulbs, vacuums and garage door openers.

“We estimate that the full opportunity of converting to a smart home with a fully electric vehicle replacing a conventional vehicle would save consumers 46.6% on their annual energy bills while also increasing overall household usage by 14% in our base case,” wrote the Barclays analyst, also suggesting that voice control will be the driving force behind growth in the smart home space.

Barclays foresees the hardware segment of the market contributing $130 billion by 2020, while software and advertising are expected to reach $170 billion over the same period. (See also: Tech Stocks Set for Boom From Smart Speakers.)

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