British Gas owners Centrica are investing £500m into the connected home.
The energy provider has sold more than 200,000 smart thermostats through its subsidiary Hive, enabling users to control heating and hot water via a smartphone app.
British Gas recently expanded its product range to include plugs and motion sensors.
Centrica CEO Iain Conn explained that British Gas will look to ‘compete meaningfully’ in the connected home market.
He said: ‘Connected home’ offerings will become increasingly important, with propositions linked to our core energy and services products in the UK, the Republic of Ireland and North America. We already have products in the market and have built high quality end-to-end capability in this area.
‘Given these capabilities, the scale of our existing customer relationships, and our ability to connect physical with digital through our 12,000 direct engineers and technicians worldwide, we will be able to compete meaningfully in this space. To drive growth, we are investing £500m in operating costs and capital expenditure in connected homes’ activity over the next five years.
‘We have a strong development pipeline of further innovative products planned for 2015 and 2016, including our ‘connected boiler’, which is currently on commercial trial.’
The UK is encouraging businesses and cities to adopt IoT and the connected home initiatives, following the launch of a £10m competition last month.