Smart Homes Market Expected to Be Worth $58.68 Billion by 2020
According to a new market research report, “Smart Homes Market by Product (Energy Management System, Security & Access Control, Entertainment Control, and HVAC Control), Protocol and Technology (Protocol, Cellular Technology, and Communication Technology), Service (Installation, and Customization), and Geography (North America, Europe, APAC, and ROW) - Trend and Forecast to 2020,” published by marketing research firm, MarketsandMarkets, Dallas, the market is expected to grow at a CAGR of 17 percent between 2015 and 2020, to reach $58.68 billion by 2020.
Traditional home automation devices were designed to control systems within a house and within a limited range of connectivity; however, with recent developments across different areas of connectivity of appliances and devices, these systems enable users to monitor and control them even when they are on the move. This includes mobile connectivity features, an integral component of smart homes provided by device manufacturers; and compatible communication protocol and technology-based products offered by Internet service providers.
While the concept of smart homes has been in existence for a long time, the market has witnessed a profound growth, mainly, during the last five years, and the report also found that the smart homes market is highly fragmented and expected to get consolidated. The report also showed that smart homes service providers are beginning to gain traction in the marketplace, and the report’s findings show the industry could see more smart homes technology players entering the market before an inevitable consolidation occurs.
According to the report, North America is expected to retain its position as the largest smart homes market. The revival of construction activities, especially with regards to new residential buildings and renovations, is expected to support the growth of the North American smart homes market.
In addition, the report‘s findings showed that the United States will remain the major market for smart homes throughout the forecast period, due to its high adoption rate and continuous development. High investments in building infrastructure and the need to lower power consumption are further expected to drive the demand for smart homes systems, especially in Asia-Pacific and Europe.
Major companies involved in the global smart homes industry that are included in this report are Siemens AG, Berlin, Germany; Schneider Electric S.A., Limoges, France; ABB Ltd., Zurich, Ingersoll-Rand Plc., Dublin, Emerson Electric Co., Ferguson, Mo., Legrand S.A., Limoges, France, Crestron Electronics Inc., Rockleigh, N.J., Lutron Electronics Inc., Coopersburg, Pa., Control4 Corporation, Salt Lake City, and more.