Global Home Automation Market Analysis
The global Home Automation market is projected to reach US$2.8 billion by 2018, driven by increased consumer focus on energy conservation and expanding applications of Home Automation Products. Reducing prices of Home Automation Solutions that promise to bring volume growth, and shifting consumer preferences towards managed Home Automation Services also augurs well for the future of this market.
Capable of enabling a convenient and luxurious life by automating daily household chores such as activating security systems and controlling various electronic appliances with just a push of a button and from a single interface, home automation solutions has been increasingly gaining prominence across the globe. Long perceived as equipment for the luxury home segment, home automation products have shed their image to become a mainstream technology, even finding opportunities in the budget home category. The emergence of Do-It-Yourself (DIY) solutions and managed services especially, as cost effective alternatives to much expensive luxury home solutions, has taken home automation to the common man. Introduction of standards based wireless technologies, which have rendered home automation solutions less complex than before by eliminating wiring and integration functions, are also driving their increased adoption of home automation products among home owners. Changing consumer perception about home automation as cost saving solutions rather than luxury proposition is also driving its increased adoption across the globe.
Growth in the Home Automation market is projected to stem from the increasing consumer focus on conservation of energy. Expanding gap between demand and supply of electricity and environmental effects of excessive usage of energy-guzzling appliances are particularly driving increased focus on energy conservation across the globe. Further, the hard learnt lessons from the recession are driving consumer interest towards adopting appliances that enable cost savings. Capable of allowing users to turn off their lights, fans, heaters or air conditioners when not in use even from remote location, home automation solutions not only provide considerable savings on energy costs but also promote judicious use of electronic appliances. Other major factor fueling growth in the market is the declining prices of home automation solutions. Buoyed by the drop in prices of electronic components and communication equipment, manufacturers are driving down the cost of home automation equipment thereby fueling increasing adoption by consumers in the budget home segment.
Another major trend being witnessed in the home automation market is the shift in consumer preferences towards managed home automation services. Managed home automation services that include deployment, monitoring and maintenance of automation systems by a service provider for a fixed monthly rental is gaining prominence, as the homeowners are relieved from the hassle of installing and maintaining these systems. Moreover, the cost benefits offered by managed services are catalyzing the increase in adoption of such solutions. Against this backdrop, several telcos, broadband and security service providers are partnering with automation vendors to offer managed automation services for home owners thereby fuelling the growth of the market. Also driving growth are the expanding applications of home automation systems that feature integration of energy management and security features into a single system. Manufacturers, in a bid to offer enhanced value to the customers are developing innovative smartphone apps to remotely access and manage home automation systems. Banking on these latest developments, the market is projected to witness growth for the next few years.
While the market in most of the regions is growing steadily, the market in Europe is witnessing lethargic demand primarily due to the impact of euro zone crisis on the residential construction market. The downward spiral of the Euro crisis has triggered volatility in the housing and construction markets in the region primarily because of the high public debt held by most regional Governments and the implementation of austerity measures that limit public expenditure and financing for infrastructure projects. Despite the mixed growth prospects being witnessed, largely referred to as the North-South divide, the aggregate impact on the European construction industry is nevertheless depressing with recovery being forecasted only after the year 2014. However, the relatively less steep declines in residential and non-residential renovations, provides a ray of hope for the home automation products market. As sustainable constructions emerge to represent the domestic construction industry’s new future, the flurry of renovations is poised to benefit the home automation market.
As stated by the new market research report on Home Automation Products, North America represents the largest market worldwide accounting for a major share of the market pie. Functional area wise, Entertainment Controls represents the largest functional area in the North American home automation products market. The fastest growing functional segment in North America is Security Controls with revenues from the segment projected to wax at a CAGR of 4.1% over the analysis period.
Key players in the market include ABB Ltd., Abilia AB, AMX Corporation, Control4, Crestron Electronics, Inc., Emerson Climate Technologies, Inc., Haier Group, Home Automation, Inc., Honeywell International, Inc., Lightolier Controls, LiteTouch, Inc., Lutron Electronics, Inc., Monster Cable Products, Inc., Schneider Electric Ltd., Clipsal Australia Pty Ltd., Siemens AG, Ener-G Controls Ltd., Smarthome, Inc., Teletask Vantage Controls, Inc., and VITY Technology.
The research report titled “Home Automation: A Global Strategic Business Report”, provides a comprehensive review of the home automation markets, current market trends, key growth drivers, recent product introductions, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for Home Automation market for the following geographic markets including North America, Europe (France, Germany, Italy, UK and Rest of Europe), and Rest of World. The North American market is analyzed by functional areas including Lighting Controls, Security Controls, HVAC Controls and Entertainment Controls.
Home Automation Market Report
Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications’ web site. View the report: Global Home Automation Market Analysis.