Smart Home Installation Service Market
Smart Home Installation Service Market (System - Home Monitoring/Security, Lighting Control, Smart Speaker, Thermostat, Video Entertainment, Smart Appliances, Others (Including Garage Door Controller); Channel - OEMs, Retailers, E-commerce, Professional Service Providers) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019 - 2027
Smart Home Installation Services: Not Just an Amenity but a Growing Need
The world is undergoing digital transformation as the Internet of Things (IoT) technology is witnessing magnified growth, and the notions about connected homes are changing from luxury to mainstream. While the home automation industry continues its rapid expansion, an increasing number of companies are swimming with the tide to tap into the full potential of smart home businesses. The adoption of smart home technologies is one the rise, globally, and smart home installation services are soon expected to become an inextricable element of the business model in the home automation ecosystem.
Taking into consideration the astounding upswing in the adoption of cognitive systems and connectivity technologies, Transparency Market Research (TMR), in its latest offering, offers analysis on how broader evolutions in the home automation are likely to influence the dynamics in smart home installation services market. This study presents exclusive and actionable insights that can elucidate the growth prospects for smart home installation service providers in the rapidly-evolving realm of intelligent and connected homes.
Market Players Keeping Abreast of the Developments in the Smart Home Industry
In 2017, the smart homes market surpassed US$ 31 billion in global revenues. Enabled by growing adoption of IoT and Artificial Intelligence (AI), smart homes technologies continue to proliferate, as users look for greater access and control. Over the past few years, smart and connected devices have witnessed significant adoption—a trend that has provided a lucrative platform for installation service providers. The industry has been quick to respond—between 2013 and 2017, global revenues grew 2X to surpass US$ 3 billion in 2018.
‘Lucrative’ and ‘competitive’ go hand in hand, and as holding on to market shares becomes increasingly difficult, the focus has shifted to capitalizing on next-generation connectivity technologies incorporated in today’s smart home devices. Installation service providers also need to keep upskill, as vendors introduce new products, notably voice-assistants, doorbells, and thermostats.
Original Equipment Manufacturers (OEMs) Hold Sway
With nearly one-third revenue share, Original Equipment Manufacturers (OEMs) remain the preferred installation providers. Installing connected devices and smart home appliances in automated spaces continues to be viewed as a daunting task by a significantly large segment of consumers. OEMs are capitalizing on the lack of consumer confidence in DIY (Do-It-Yourself) installation kits to consolidate their position.
Home security concerns remain the linchpin of the smart home industry, and it is unsurprising that among the various aspects of the smart home ecosystem—entertainment, appliances, metering, etc.—home monitoring and security systems have witnessed the highest traction. Consequently, demand for installing these services accounts for a significant pie of the bottomline of installation service providers. In 2018, home monitoring and security systems accounted for nearly half the revenue share of the smart home installation services market, and this trend is expected to prevail in the future.
In addition to these industry-specific developments, the broader push toward investment in smart infrastructure is likely to provide sustained opportunities to installation providers. Governments around the world have committed to building energy-efficient, secure, and connected cities of the future. For instance, the Indian Government, under the ‘Smart Cities Mission’ pledged US$ 14 billion to develop 100 smart cities across the country. The investments by governments have also been complemented by enthusiasm from the private sector—recently, Planet Smart City, in collaboration with Habitax, invested £27 million in Brazil.
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e-Commerce Grows as Preferred Touchpoint
The steady growth of the eCommerce industry has ceased to be limited just to the consumer goods industry, and its impacts can be seen in the smart home installation services landscape too. Though authorized OEMs continue to remain the most preferred customer touchpoint in the smart home installation services space, the increasing popularity of e-Commerce channels is expected to create new opportunities in the smart home installation services industry.
Collaborating with e-Commerce channels to expand their reach into their target customer segments is a strategic move by market players. For instance, in November 2018, eBay announced partnerships with three service providers in the smart home landscape—InstallerNet, Handy, and Porch—allowing end users to book smart home installation services on eBay’s inventory.
Leading service providers are challenging the easy installation claims made by home improvement and DIY kits, and using this strategy as an important weapon for the expansion of their consumer base in the smart home installation services market. OEMs and retailers in the smart homes industry are offering consultation, product selection, and installation services under one roof, to bolster their growth in the smart home installation services industry.
Analysis on Competitive Landscape
The competitive landscape of the smart home installation services market can be analyzed two categories—smart home device suppliers that also offer installation services, and retailers that only offer smart home installation services. New entrants and smart home device manufacturers in the smart home industry are more inclined towards establishing their own service businesses. In addition, manufacturing easy-to-use smart home installer tools is expected to remain an important strategy of emerging players for revenue growth in the coming years.
High-end home automation service providers such as Rexel, Vivint, Inc., and Calix, Inc. are formulating their business strategies that reflect on an increased focus on expanding their existing distributor networks across the world. For instance, in April 2019, Calix Inc. announced a partnership with IdeaTek, to expand the availability of its Gigabit services to its subscribers, and facilitate the management and integration of its smart home devices with its cloud-based and home Wi-Fi services. Recently, Vivint, Inc. also announced its partnership with Airbnb, allowing it to remotely manage energy consumption and home security at its homes.
Analysts’ Viewpoint on the Smart Home Installation Services Market
The penetration of connected homes has reached new heights, giving an impetus to the growth of the smart home installation services landscape. During 2019-2027, the smart home installation services market is projected to grow 5x, at a remarkable CAGR of nearly 25%. However, there is still a long way to go for service providers to reach full business potential in the market. The authors of this report are of the opinion that extraordinary marketing efforts targeted toward improving the awareness and understanding about connected device value propositions will remain the key to striking it big in developing markets.
Smart Home Installation Services Market: Definition
- The smart home installation services market report provides an analysis of the global smart home installation services market for the period 2019–2027, wherein, 2018 is the base year, and 2019 to 2027 is the forecast period. Data for 2017 has been included as historical information.
- Smart homes, also known as automated homes, are incorporated with advanced devices that control the features of the home. Smart home technology was mainly used to control environmental systems such as heating and lighting; but due to increasing advancements in technology, smart homes include various electronic components such as multi-media, security or monitoring devices, and window and door operations, as well as many other functions that have accelerated the smart home installation services market, globally.
Global Smart Home Installation Services Market by System - Snapshot
Smart Home Installation Services Market in Brief
- The global smart home installation services market was valued at US$ 2,515.5 Mn in 2017, and is expected to reach a value of more than US$ 21,000 Mn by 2027.
- The smart home installation services market is expected to grow at a CAGR of nearly 25% during the forecast period.
- In terms of system, the lighting controls segment of the smart home installation services market is projected to expand at a notable CAGR during the forecast period. The rising demand for reducing power consumption and carbon emissions, majorly in developing countries such as India and China, have propelled the demand for the installation of lighting control systems in houses.
- In terms of channel, the OEMs segment held a dominant position in the smart home installation services market, and is expected to retain its prominence throughout the forecast period. OEMs provide both, installation and aftersales service to customers.
- North America held a dominant position in the global smart home installation services market in 2018, and is expected to retain its prominence throughout the forecast period.
- The U.S. and Canada are the major countries that drive the smart home installation services market in the region. The increasing adoption of network connected devices in North America is a key factor driving the smart home installation services market in the region. The trend of early adoption of technology and significant presence of market leaders such as Vivint, Inc., Red River Electric, and Miami Electric Masters in the region are responsible for the prominent position of North America in the global smart home installation services market.
- Increasing crime rates and concerns regarding residential security have fueled the demand for advanced security systems, which, in turn, are propelling the smart home installation services market in North America.
- The smart home installation services market in Asia Pacific is projected to expand at a prominent CAGR during the forecast period. India, China, Japan, and Australia are major countries that drive the smart home installation services market in the region.
- Improving standards of living and rapid urbanization are key factors that offer considerable opportunities to the smart home installation services market in the Asia Pacific region.
- The increasing need to reduce energy consumption in Asia Pacific has boosted the demand for smart meters, which, in turn, fuels the smart home installation services market in Asia Pacific.
Global Smart Home Installation Services Market by Region - Snapshot
Key Growth Drivers of the Smart Home Installation Services Market
- Demand for Advanced Safety and Security Devices: The arrival of improved safety and security features with active monitoring technology is a key trend boosting the smart home installation services market. Smart home systems contain inbuilt encryption systems that enable the device to operate and function securely and safely, thereby preventing the compromise of sensitive data in these devices.
- Increasing Adoption of Smartphones: Apps permit a smartphone to use a device remotely in order to operate locks, and switches for heating, lights, alarms, and security cameras. Smartphone connectivity permits users not only to customize and control the operation of connected or individual devices but also to collect real-time information and alerts from sensors in the home, such as abrupt temperature changes that can indicate a sound or fire, and movement that could indicate an intrusion. Consequently, these advantages have increased the adoption of smart home devices, which, in turn, is boosting the smart home installation services market.
Smart Home Installation Services Market – Key Players
- Key players profiled in the smart home installation services market include Calix, Finite Solutions, Handy, HelloTech Inc., Maryland Electrical Services LLC, Meyer Electrical Services, Inc, Miami Electric Masters, Red River Electric, Rexel, Insteon, Smartify Home Automation Limited, and Vivint, Inc.
Transparency Market Research (TMR) recently published a comprehensive study on the smart home installation services market, to offer a detailed explanation on how the market is expected to grow during between the years 2019 to 2027. The study unveils exclusive data and statistics about the adoption of smart home technologies and their penetration across the world, to reach estimates on revenues of the smart home installation services market.
In this study, readers can avail comprehensive information about the current growth parameters and future prospects of the smart home installation services market in terms of value (US$ million). The study focuses on the important changes in major growth prospects of the smart home installation services market during the assessment period. It assesses the key market dynamics as well as other macroeconomic and microeconomic factors that may influence the growth of the smart home installation services market in the near future. The study also encapsulates crucial insights about how the smart home installation services market is expected to grow in various geographical regions in the coming years.
TMR’s study also offers complete analysis of the developments in the competitive landscape of the smart home installation services market, by providing detailed information about the leading players in the market. The study profiles leading companies and smart home installation service providers, as well as new entrants in the smart home installation services market. With analytical information about the winning strategies and business models of the frontrunners in the smart home installation services market, the study can help market players assess their competitors’ growth parameters in the market.
What are the Key Questions Answered in TMR’s Smart Home Installation Services Market Report?
- How will the emergence of 5G technologies impact the growth parameters of the smart home installation services market?
- What are the factors influencing the penetration of smart home installation services in developing regions?
- What is boosting the demand for smart home installation services for lighting control systems in smart homes?
- Which are the winning strategies adopted by market leaders to cater to the changing demand for smart home installation services in developed countries?
- How is the degree of competition changing in the smart home installation services market?
- Which companies are leading in the smart home installation services market?
- What are the critical barriers for new entrants in the smart home installation services market?
The research methodology followed during the making of the smart home installation services market includes both, secondary and primary research methodologies, with the latter contributing to the greater portion of the study.
Along with a large internal repository, analysts also have access to a number of external proprietary databases, which helps them ensure the accuracy of the information collected through secondary research on the smart home installation services market. Statistics and data from the Smart Home and Building Association, National Association of Home Builders, Consumer Technology Association, and Home Technology Association were used during the study.
The information gathered through secondary resources is validated by the information acquired through primary research, which involves interviewing key opinion leaders (KOL) in the smart home installation services market. These include CXO level executives such as vice presidents, technology managers, sales managers, regional heads, and operation managers of leading companies in the supply chain of the smart home installation services market.
Analysts have come to conclusions on how the smart home installation services market is expected to grow, after deriving exclusive and accurate insights from both, primary and secondary resources.
What are the Key Segments of the Smart Home Installation Service Market?
TMR’s study on the smart home installation services market divides the information into three broader categories - channel, system, and region. Readers can find detailed information about how the growth of the smart home installation services market is impacted by the dynamics and changing trends associated with these segments, in this report.
The study provides complete information about smart home installation services based on channels and systems across five geographical regions—North America, Europe, Asia Pacific, the Middle East & Africa, and South America. It also offers detailed reasoning on the estimated revenue share of each segment in the global smart home installation services market
Professional Service Providers
Middle East & Africa