Parks Associates: U.S. Revenues From One-Time Support Services Will Total $1.7 Billion by 2022

DALLAS, Jan. 15, 2019 /PRNewswire/ -- 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.

"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 [email protected]. To schedule an interview with an analyst or to request specific research data, please contact Julia Homier at [email protected], 972-996-0202.

About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

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

Media Contact:
Julia Homier
Parks Associates
972.996.0214
[email protected] 

SOURCE Parks Associates

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