Global home automation market was valued at USD 4.41 billion in 2014, growing at a CAGR of 26.3% from 2014 to 2020. Home automation systems refer to all such systems, whether used as a single application or as integrated solutions that are used to automate processes. They are electricity powered and are manually controlled (such as turning on the AC, dimming lights, managing entrance gate and cameras, operating smart appliances in a house, and so on. With technological advancements in several developing countries across the globe, home automation solutions are evolving continuously. Modern day home automation solutions utilize high end digital technology for providing better performance and efficiency.
The global home automation market is segmented by region into North America, Europe, Asia-Pacific (APAC) and Rest of the World (RoW). The home automation market is primarily driven by growing need for effective solutions in various domestic applications such as lighting, safety and security, energy management, entertainment (audio and video), and HVAC (heating, ventilation, and air conditioning). High degree of internet connectivity and penetration in developed countries such as the U.S., the U.K., France, and Germany are also contributing to the growth of home automation market globally.
Geographically, North America led the home automation market in 2014 and the region is expected to continue its dominance by 2020. The region’s dominance is due to advancement in technology in countries such as the U.S. and Canada. Moreover, consumer awareness and affinity towards new technology is further contributing to the growth of home automation market in North America. Europe and Asia Pacific followed North America in the global home automation market to collectively account for more than forty percent of the global market revenue share.
The home automation market is segmented on the basis of application into lighting, safety and security, HVAC (Heating, Ventilation, and Air-Conditioning), entertainment, energy management, among others. Among all, safety and security segment held the highest market revenue share in 2014 and is expected to remain so during the forecast period. Demand for safety and security home automation systems is attributed to growing need for remote home monitoring solutions and increasing risk of criminal activities such as theft and robbery. Safety and security segment is followed by entertainment and lightening segment.
The home automation market is further segmented by networking technology into wired systems, power-line systems, computing networks, and wireless systems. Wireless system segment of home automation technology held the highest revenue share accounting for more than fifty percent of the overall market in 2013. With the increase in number of products equipped with WiFi technology, the demand for wireless technology enabled home automation solutions are observing substantial growth globally. Power-line systems is analyzed to be the second fastest growing networking technology segment after wireless systems and is expected to attain a significant growth in the recent future.

Home automation solutions are some of the most sought-after services in the world in the consumer markets. The demand for home automation solutions is much more pronounced in the developed economies than the emerging ones, but the latter is catching up to the competition. Automation solutions are constantly evolving these days in terms of efficiency, ability, and overall performance. A lot of regions refer to home automation solutions as an umbrella term that includes both systems and single point applications that are used to automate any home process. This also includes integrated solutions. A majority contingent of home automation devices are powered by electricity and can be manually overridden. Thanks to efforts in device communication standardization, devices from multiple aspects and different companies are able to connect to each other. 

The report on the global home automation market is essentially a description of a projected chart for the market and its progress between 2014 and 2020. To achieve this, the report includes past and current trends and factors of influence. A number of proven industry standard research and calculation methodologies are used to gauge the global home automation market, including Porter’s Five Forces analysis and a SWOT analysis. The report also includes a section dedicated to revealing the attractiveness of each segment in the market over forecast period from 2014 to 2020. 

Global Home Automation Market: Trends and Opportunities: 

The primary driver acting on the global home automation market currently is the ever-increasing need shown by homeowners to increase the efficiency of several domestic applications. Home automation can be used to enhance a home’s HVAC, entertainment systems, energy consumption management, security, and lighting. Homeowners are showing a particularly high demand for being able to control a home’s HVAC needs. Furthermore, the proliferation of high-speed internet in developed regions is becoming a key factor that the home automation market of these regions is hinged upon. High-speed connectivity allows for a much smoother communication rate between devices. It is playing an important role in the application of home automation systems in the U.S., the U.K., Germany, and France. 

A significant factor working in favor of the global home automation market currently is its ability to promote energy conservation and manage overall energy consumption in a home. The depleting natural resources are putting a high strain on the energy supply in the world, while the demand only seems to increase. Home automation thus becomes one of the methods used by an individual or a family to minimize their energy consumption on a daily basis. Another trend visible in the proliferation of home automation is the growing use of smartphones across the world. Smartphones allow a user to gain a high degree of control over a smart home, therefore imparting a greater affinity for consumers towards home automation. 

Global Home Automation Market: Region-wise Outlook: 

North America has been the leading consumer of home automation solutions and services in the world for the past few years. It is expected to continue being the leading region in this global market, an estimated based on the massive demand for home automation solutions in the region, the large-scale presence of high-speed connectivity modes, and the high penetration of smartphones in the consumer electronics industry. The U.S. and Canada both possess advanced technologies that can allow for an easier transition for homeowners to the latest trends in home automation. The two nations also hold a large number of consumers with high awareness levels. 

Europe and Asia Pacific follow North America in terms of consumption of home automation solutions, but are showing a heavy increase in their demand, which is expected to increase even further over the coming years. 

Companies Mentioned in the Research Report:

The leading companies present today in the global home automation market include Honeywell International Inc., AMX LLC, Johnson Controls, 2GIG Technologies, Crestron Electronics, Inc., ADT Corporation, Siemens AG, Vantage Controls, Control4 Corporation, iControl Networks Inc., and Schneider Electric SA. 

Key segments of the Global Home Automation Market: 

Home Automation Market: By application

  • Lighting
  • Safety and security
  • HVAC (Heating, Ventilation, and Air-Conditioning)
  • Entertainment (Home audio and video)
  • Others(Robotics, heath care)

Home Automation Market: By networking technology

  • Wired home automation systems
  • Power-line home automation systems
  • Computing network home automation systems
  • Wireless home automation systems

Home Automation Market: By type

  • Luxury (custom) home automation systems
  • Mainstream home automation systems
  • DIY (Do It Yourself) home automation systems
  • Managed home automation services

The report provides a cross-sectional analysis of all the above segments with respect to the following regions: 

Major regions analyzed under this research report are:

  • Europe
  • North America
  • Asia Pacific
  • Rest of the World 

This report gives you access to decisive data such as:

  • Market growth drivers
  • Factors limiting market growth
  • Current market trends
  • Market structure
  • Market projections for the coming years 

Key highlights of this report

  • Overview of key market forces propelling and restraining market growth
  • Up-to-date analyses of market trends and technological improvements
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors
  • An array of graphics and SWOT analysis of major industry segments
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis
  • Offers a clear understanding of the competitive landscape and key product segments