Industry Insights
The global home automation market size was USD 17.48 billion in 2016 and is expected to grow over the forecast period. The market is being primarily driven by increasing awareness for less energy consumption, the rise in electricity prices, and advancement in technology. Furthermore, increase in safety & security concerns and additional services such as locking or doors and windows along with surveillance of cameras is expected to boost the market growth.
Global home automation market, by application, 2014 - 2024 (USD Billion)
In this digitalization era, home automation has been gaining popularity in developed nations such as the U.S., UK and Germany, attributed to the cost reduction, enhanced internet connectivity and simplicity in the functioning. The home automation system is also accessible by tablet and smartphones with the help of technologies including Bluetooth and ZigBee, owing to this it becomes a more convenient for end-user.
The home automation system can prevent theft and robbery. These drivers will flourish the market over the forecast period. However, high initial capital investment, security fears and lack of interoperability & awareness in emerging economies will hinder the growth of the market.
Segmentation by Networking Technology
• Wired systems
• Power-line systems
• Computing networks
• Wireless systems
Wireless systems were extensively used, and the segment was valued at USD 8.86 billion in 2016 owing to the increasing use of Wi-Fi. Users can easily access home automation system from any place over the internet.
Computing networks segment is expected to grow over the forecast period at the highest CAGR, attributable to the increased usage of cloud networking and companies are looking to connect the private and public cloud to secure the camera feeds. Wired systems and power-line systems are also expected to show growth over the forecast period.
Segmentation by Application
• Lighting
• Safety & security
• HVAC
• Entertainment
• Energy management
• Others
In 2016, the market was dominated by safety & security accounting for 26.2% of the market share, owing to the increasing demand for security. This segment is expected to grow as a result of the growing need for remotely controlled home monitoring solutions. These remote monitoring devices help the end user to access automation system from any places.
Lighting segment is expected to show above average growth over the forecast period as controllers consume less energy. Policies by numerous governments for saving energy is projected to provide an opportunity for the growth of this segment. The entertainment segment is expected to gain tremendous market over the forecast period owing to the ease of use offered by the controls for managing and controlling the system.
Segmentation by Type
• Custom Automation
• Mainstream Automation System
• Do-It-Yourself (DIY)
• Managed Home Automation
The mainstream automation system contributed USD 3.65 billion in 2016 and is also expected to the show highest growth, owing to the cloud-based smart system curtailed the inconvenience with managing and controlling network system, Internet-connected smart devices within a home. The demand of mainstream system is anticipated to grow over the forecast period, owing to the builders’ preference for automated system.
The demand of customized systems is also expected to grow over the forecast period. Many companies provide customized automation system that contributes to the comfort, convenience and luxury of home, as well as this system, is also contributed to control and manage the lighting, climate, music and network all from smart devices. Remaining segments such as DIY, custom and managed automation system are also expected to show growth over the forecast period.
Segmentation by Region
• North America
• U.S.
• Europe
• Germany
• UK
• Asia Pacific
• China
• Central & South America
• Brazil
• MEA
North America is considered to be the ground of some of the prominent companies in the field of home automation such as Honeywell International Inc., Acuity Brands Inc., Johnson Controls Inc., and United Technologies Corporation. North America was the largest contributor accounting for 35.7% in 2016 and is also expected to show the highest growth owing to the awareness regarding safety from theft and burglary. Europe is also showing growth over the forecast period due to the demand from developed countries such as Germany and UK.
Competitive Landscape
The global home automation market is consolidated in North America and Europe. This market is represented by various players such as Creston Electronic, Inc., AM LLC., Control4 Corporation, Honeywell International Inc., Johnson Control, Inc, Siemens AG, ABB, Legrand, Schneider Electric, United Technologies Corporation, Cytech Technology, and Ingersoll- Rand.
These companies are focusing product innovation on trapping potential markets and increasing their presence globally for penetration in the market; companies are adopting expansion strategies. For instance, ZigBee Alliance is heavily invested in developing a new wireless technology ZigBee which simplified automated control system.
