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Cognitive Computing Authors: Yeshim Deniz, Pat Romanski, Liz McMillan, Elizabeth White, Zakia Bouachraoui

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Why Google Bought Nest: Report Says Smart Home Revenue to Hit $71 Billion in 2018

Nest and GoogleGoogle had plenty of good reasons to scoop up Nest last month, but the latest report from Juniper Research could be one of the best yet. According to the report, revenues generated from smart home devices are expected to reach $71 billion by 2018, up from $33 billion in 2013. Although much of that revenue will come from entertainment services, the entire connected market will continue to expand exponentially in the coming years, from Nest’s thermostats and smoke detectors to smart refrigerators and washing machines. Now that Google has taken the helm, Nest’s reach should grow along with the smart home market. Juniper notes that “security and control elements” of the smart home could be worth nearly $12 billion by 2018, something that could factor in to future Nest products as they begin to ingratiate themselves further into our lives.

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Shelly Palmer is the host of Fox Television’s "Shelly Palmer Digital Living" television show about living and working in a digital world. He is Fox 5′s (WNYW-TV New York) Tech Expert and the host of United Stations Radio Network’s, MediaBytes, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment.

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