By Elizabeth Parks, President and CMO, Parks Associates
The landscape of smart homes and building IoT is undergoing a significant transformation, driven by evolving consumer expectations, technological advancements, and increasing competition among service providers. Parks Associates President and CMO Elizabeth Parks will present research at the upcoming Wi-Fi World Congress, where she will share insights on market trends and competition, changing service models, and in-home connectivity. For more details on market trends also download this PDF presentation.
Trends & competitive landscape
Over the last decade, home technology ecosystems have evolved dramatically. Traditional fixed broadband options like cable and DSL are losing ground, while Fixed Wireless Access (FWA) via mobile networks now reaches 8–10% of U.S. Internet households. At the same time, reported home Internet speeds have surged, with 22% of households now accessing 1 Gbps or faster connections. However, this acceleration is contrasted by a notable year-over-year decline in traditional service bundles (internet, TV, phone, etc.), signalling a broader trend of unbundling and consumer choice.
Evolving service models & consumer behaviour
Parks Associates identifies a shift in the perceived value of service offerings. While free value-added services once helped providers retain customers, their impact is declining. In contrast, next-generation paid value-added services (e.g., cybersecurity evaluations, smart home support, technician chats) are gaining traction. The influence of these premium offerings is particularly clear in fiber customers, where Net Promoter Scores (NPS) are rising in correlation with the number and quality of value-added services.
Additionally, consumer expectations are evolving. Subscription fatigue and device adoption push service providers to offer more personalised, utility-driven experiences. Services tied to existing billing relationships and entertainment ecosystems are particularly attractive. The strong influence of entertainment and retail partnerships underscores the growing intersection of telecom and content.
In-home connectivity and support
The in-home connectivity segment presents both a challenge and an opportunity. Although homes now house more connected devices than ever, mesh network adoption has stalled, and the emergence of Wi-Fi 6E and Wi-Fi 7 may reduce future demand for such solutions. Despite advanced networking technologies, 56% of households report more networking problems now than in 2021, revealing a persistent pain point.
Only 25% of users currently leverage router or gateway apps, showing a knowledge gap around self-service tools. Consumers continue to struggle with unfamiliar home networking features, underscoring the importance of tech support as a service differentiator. Notably, 40% of U.S. households rate home technology support as appealing—especially services offering remote diagnostics, in-home appointments, and personalised recommendations.
The data makes a compelling case: households with more devices are more interested in support services. Therefore, providers have a strategic opportunity to offer bundled tech support and security features to build long-term value and trust with customers.
‘Super service providers’ on the rise
As ISPs evolve into comprehensive service aggregators, their position is uniquely advantageous: existing billing relationships, trust in service continuity, and integration with entertainment content ecosystems provide a foundation to deliver bundled services across security, smart home, and networking domains.
Key opportunities lie in:
- Expanding into senior care and fire monitoring services.
- Offering expert support for installation and performance optimization.
- Integrating smart HVAC and connected appliances into managed home networks.
The competitive frontier now includes both traditional MSOs (multiple-system operators) and mobile carriers, pushing all players to develop enhanced, differentiated offerings. As such, the next phase of market leadership will be defined by the ability to deliver holistic, intuitive, and value-rich consumer experiences.
The convergence of connectivity, consumer demand, and IoT innovation reshapes the smart home and building landscape. Parks Associates’ analysis shows that tomorrow’s market leaders will be those who understand the new expectations of connected households and can deliver on those expectations with flexibility, innovation, and service excellence. With device ownership soaring and the appetite for support growing, ISPs and smart home providers must act swiftly to solidify their roles as essential service hubs in modern homes.
Elizabeth Parks, President and CMO of Parks Associates, will be speaking at the Wi-Fi World Congress USA, which will be held in Mountain View, California, April 28-30.. For more information about Parks Associates research, visit www.parksassociates.com. For more details on the above topics click here to download a PDF presentation.
