TV EverywhereBroadband penetration will surpass 650 million households worldwide this year and nearly 430 million of those households are equipped with a home data network, according to new white paper from Parks Associates titled “Trends, Technologies, and Ecosystems: Evolution of the Digital Home.”

Parks’ analysts see strong consumer demand for new technologies and devices driving the evolution of the connected home, but also noted that consumers are reluctant to incur additional service fees from different service providers.

“In our research, we are seeing consumers demand a clear value proposition on core functions before they start adding additional features,” elaborated Parks’ president Stuart Sikes, who cited the example of the connected car.

“Approximately one-third of U.S. car owners have in-vehicle connectivity, but our research shows the most popular apps relate to navigation and vehicle performance. To remain competitive, service providers and CE manufacturers must ensure their core offerings remain relevant to the connected consumer.”

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The white paper’s key findings include:

  • U.S. revenues from IP connected home service bundles will reach $780 million in 2013 and $1 billion in 2014.
  • 71% of smartphone owners have at least one paid app installed on their phone.
  • By 2017, broadband service providers worldwide will deploy 120 million residential gateways and routers, up from 75 million in 2012.
  • Tablet owners watch six hours of video on the device per week.
  • Energy monitoring and control systems have demonstrated energy savings approaching 17% in some homes. Providers, manufacturers, and utilities will employ big data and data analytics going forward to increase savings and efficiency while retaining consumer comfort.
  • 90% of pay-TV customers in North America have access to TV Everywhere.
  • Just 10% of U.S. broadband households want to rent and watch video through a social networking site.
  • Roughly 20% of U.S. broadband users watched video on a mobile phone in the past 30 days.