Allied Market Research published a report, titled, “Home Automation Market by Application (Lighting, Safety & Security, HVAC, Entertainment, and Others), Type (Luxury, DIY, Managed, and Mainstream), and Technology (Wired and Wireless) – Global Opportunity Analysis and Industry Forecast, 2017-2023”. The report mentions the key drivers, restraints, and opportunities of the global home automation market, along with identifying the current trends and future estimations to identify potential investment pockets for stakeholders. According to the report, the global home automation market was valued at $39.6 billion in 2016 and is expected to reach $81.6 billion by 2023, registering a CAGR of 11.2% from 2017 to 2023.
Increase in awareness concerning efficient energy usage, surge in energy cost, rapid technological advancement, and growth of the IoT market is expected to drive the global home automation market. Market growth is also supplemented by the adoption of home automation systems owing to an increase in safety & security concerns. However, lack of awareness about home automation products, lack of standardization, and the high cost of initial investment is set to restrain market growth. Conversely, increase in adoption of automated services, owing to development of the construction industry and increase in demand for energy efficiency in smart homes & buildings, is expected to provide lucrative opportunities for the home automation market.
Home automation majorly used in safety & security
Based on application, the report segments the global home automation market into lighting, safety & security, heating, ventilation, and air conditioning (HVAC), entertainment, and others. In 2016, the safety & security segment generated the largest revenue in the market. It is expected to grow at a CAGR of 11.8% during the forecast period, fueled by their ability to allow users’ monitor their homes from remote locations. The entertainment segment is also projected to grow at a CAGR of 11.5% from 2017 to 2023.
Wireless technology dominates the market
The home automation market is bifurcated into wired and wireless technology. Accounting for about 53%, wireless technology was the dominant segment in 2016, as the installation of wireless automation networks facilitates significant reductions in energy management. During the forecast period of 2017-2023, it’s expected to grow at a CAGR of 11.6%.
Luxury home automation market to generate maximum revenue
Based on type, the home automation market is categorized into luxury, do it yourself (DIY), mainstream, and managed services. The luxury segment generated the maximum revenue in 2016 and is projected to continue its dominance through 2023, registering a CAGR of 10.1% during the forecast period. Meanwhile, the mainstream segment is expected to grow at the fastest rate through 2023, registering a CAGR of 13.4%.
North America to retain its dominance in the forecast period
Finally, the report analyzes the automation market across North America, Europe, Asia-Pacific, and LAMEA. In 2016, North America accounted for the major share of the global market, followed by Europe and Asia-Pacific. In the forecast period, North America is expected to maintain its dominance and grow at a CAGR of 9.9%, owing to a rise in number of tech-savvy consumers and improved lifestyle of populace. However, Asia-Pacific is estimated to grow at the highest rate due to rise in energy prices and growth in awareness towards smart home appliances. In the European home automation market, Germany accounted for more than 36% share in 2016.
Key market players
The key players profiled in the home automation market include Crestron Electronics, Inc. AMX LLC. (Harman), Control4 Corporation, Honeywell International, Inc. Johnson Controls, Inc., Siemens AG, Zigbee Alliance, Vantage Controls (Legrand), Savant Systems LLC., and ABB. They have adopted various winning strategies such as mergers & acquisitions, collaborations, partnerships, and others to gain a strong position in the industry.
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