Home Automation Market Overview:
Global Home Automation Market was valued at $39,607 million in 2016, and is projected to reach at $81,645 million by 2023, growing at a CAGR of 11.2% from 2017 to 2023. Home automation is utilization of intelligent terminals, which is automation system to control home appliances and equipment. Increase in awareness for efficient energy usage, rise in electricity prices, and technological advancements are expected to drive the home automation market growth. Moreover, increase in safety & security concerns fueled the adoption of home automation system, thus boosting the market growth.
However, lack of awareness about home automation products and high initial investments in home automation are expected to hamper the home automation market growth. Increase in adoption of automated services is expected to provide lucrative opportunities for the global home automation market.
The report segments the global home automation market on the basis of application, type, technology, and region. Applications covered in the study includes lighting, safety & security, heating, ventilation, and air conditioning (HVAC), entertainment, and others. On the basis of technology, the home automation market is bifurcated into wired and wireless technology. By type, the home automation market, is classified into luxury, do it yourself (DIY), mainstream, and managed services. Geographically, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Safety & security systems accounted for a dominant share of the market in 2016, and are expected to grow at a CAGR of 11.8% during the forecast period. The wireless technology was the dominant segment for home automation market accounting for about 53% in 2016.
The key players profiled in the home automation market are ABB Ltd., AMX LLC. (Harman), Control4 Corporation, Crestron Electronics, Inc., Honeywell International Inc., Johnson Controls Inc., Savant Systems LLC., Siemens AG, Vantage Controls (Legrand), and Zigbee alliance.
Top Impacting Factors
The factors that impact the global home automation market include development of innovative & energy efficient automated systems, growth in IoT market, increase in importance of home monitoring from remote locations, rise in consumer awareness related to availability of smart home devices such as automated security & lighting systems, and stringent government regulations. The adoption of home automation systems is increasing, owing to development of the construction industry and increase in demand for energy efficiency in smart homes & buildings. The home automation industry is dominated by remote control solutions, as mobile apps and other advanced solutions are expensive in the developing regions and lack of standardization are expected to hamper the home automation market growth.
Increase in Electricity Prices
The growth in electricity prices globally have increased the operating budget for house owners. The residential buildings and hospitality industries are major end users of the home automation market. The increasing prices of commodities, such as coal, significantly enhances the cost for generating electricity and in turn increases the end-user electricity cost. The adoption of home automation helps end users in regulating their usage, thereby decreasing their electricity expenditure. The home automation controls provide economical usage of electricity and further reduce the energy consumption in lighting, security, and HVAC systems.
Stringent regulations are implemented by regulatory bodies to effectively utilize and manage electricity consumption. Different regulations as imposed by the respective authorities include China’s five-year plan targets for energy efficiency projects and European 2020 energy targets to reach net-zero energy consumption in public and private buildings. These regulations are anticipated to boost the growth in adoption of smart automated controls during the forecast period.
Increase In Awareness Among Consumers
The home & building owners are becoming more aware of effectiveness of automated controls in their premises.
Intelligent lighting controls, automated HVAC controls, and security systems provide efficient utilization of home controls with reduced consumption of electricity. Buildings owners are focusing on green initiatives to minimize the overall CO2 emissions. The increasing awareness is one of the important factors that boost the adoption of automated controls globally.
Advancements in technologies and improved connectivity solutions have increased the adoption of home automation controls globally. With the advent of various wireless technologies such as ZigBee and Bluetooth, installation of automated control systems has been simplified. Different standards for home automated controls such as EnOcean and Z-wave have increased the adaptability of different components with each other. Further advancements of these automation systems are expected to fuel their adoption across different end-user segments.
Longer Payback Period
High installation cost for home automation systems increases the payback period, thus limiting the adoption of these controls in many regions. Decline in prices of components, such as controlled devices, sensors, and interface devices, during the forecast period is expected to eventually reduce the payback time, thereby leading to a higher adoption in the near future.
Top Impacting Factors of Home Automation Market
- This study provides an in-depth analysis of the global home automation market along with current trends and future estimations to identify potential investment pockets for stakeholders.
- It presents information related to key drivers, restraints, and opportunities along with their impact analysis.
- Porter’s Five Forces analytical model illustrates the competitiveness of the market by analyzing various parameters, such as threat of new entrants, threat of substitutes, strength of the buyers, strength of the suppliers, and the degree of competition.
- A quantitative analysis of the current market and estimations from 2016 to 2023 is provided to highlight the financial competency of the market.
Home Automation Market Key Segments:
- Safety & Security
- Do it Yourself (DIY)
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
The Key Market Players in the Report are as Follows:
- Crestron Electronics Inc.
- AMX LLC (Harman)
- Control4 Corporation
- Honeywell International Inc.
- Johnson Controls Inc.
- Siemens AG
- Zigbee alliance
- Vantage Controls (Legrand)
- Savant Systems LLC.