Global Home Automation Market: Safety and Energy saving at the front of consumers’ minds, finds TMR
The global home automation market is dominated by four players who account for 50.9% of the market in 2013, while rest of the market is highly fragmented between numerous regional players. The top four players are Crestron Electronics, Inc., ADT Corporation, AMX LLC, and Johnson Controls, Inc. There are specialized players in the home automation market too, operating under specific revenue segments and expanding their product-line depth and width. The strategy behind this is to provide consumers with a comprehensive product mix and at the same time safeguard themselves against possible market risks associated with each application segment.
Rising at a robust CAGR of 26.3% during the forecast period of 2014 to 2020, the opportunity in the home automation market is estimated to reach US$21.6 bn by the end of the forecast duration.
North America Remains Most Lucrative Market for Home Automation
Geographically, North America accounts for more than half the global market for home automation and is predicted to expand at an exceptional CAGR of 60.79% throughout the forecast duration. The U.S. alone accounts for 81.78% of North America’s revenue and is expected to sustain the demand in the near future.
By type (mode of entry), the segment of luxury automation (custom) systems is projected to remain at the top until the end of forecast period of 2014-2020 in terms of demand. By application, the segment of safety and security is forecast to register a strong CAGR compared to other application segments such as lighting, HVAC, entertainment, and energy management.
Exponential Growth Rate Projected as Competition Leads to Reduced Prices
Subject to some critical restraints being resolved, the global market for home automation may witness exponential growth, with the average annual growth exceeding 70%. Some of the favorable factors driving the market for home automation are energy efficiency, growing connectivity via the internet and mobile devices, the introduction of managed home automation, rising awareness regarding energy conservation, and the ability to manage energy consumption through automation technologies.
The report notes that the absence of a dominant player and the growing presence of several new players in this market has led to competitive prices being offered to end users, which is further fueling the market for home automation.
Low Consumer Awareness and Costly Solutions Restraining Growth
The global market for home automation faces challengers from a few underlying but inevitable factors such as the impending need to develop universal solutions, a lack of consumer awareness and technical know-how, a short battery life of wireless controls, and the requirement of specialized software to manage home automation services. Some of the other factors limiting the growth of the global market for home automation are low consumer awareness, costlier solutions, the need of solutions on a one-size-fits-all model, and perceived security and health risks.
According to the author of the report, “Many opportunities exist in the market for home automation, provided the concerns discussed above are addressed. Currently, the penetration of home automation is less than 1% worldwide and any attempt to achieve a larger audience can open up new avenues.” Home healthcare automation is one such potential market.
The information presented in this review is based on a Transparency Market Research report, titled, “Home Automation Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014–2020.”
Key Segments of the Global Home Automation Market
Home Automation Market: By application
- 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
Home Automation Market: By Geography
- North America
- Asia Pacific
- Rest of the World
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