Market outlook for smart homes and home automation
Internet penetration is very high among the UK households as compared to other nations. The smart home market revenue is augmented by the application of IoT and it is expected to witness rapid adoption in the region. The market analysis predicts the market to grow at a CAGR of more than 24% from 2015 to 2019.
With the help of the OEMs, application service providers, and the wireless communication protocols, smart homes find application in various industries like security, HEM, healthcare etc. It enables effective monitoring and control by remote inhabitants. It is resulting in heavy shipments of the automated home devices in the UK.
What are smart homes and how is it impacting lifestyles?
A smart home performs three actions such as remote status check, remote information, and remote control to implement a set of actions from remote locations. For instance, smart home helps in lighting and temperature control, security, door operations and many more applications. Smart home offers wide variety of applications such as home automation, home security, energy management, home cloud and e-health services. It provides a better experience to consumers by providing comfort and convenience.
With the incorporation of ambient intelligence in link with the informatics from big data analytics and ubiquitous smart devices in the connected home technology, future systems are expected to display predicting capabilities for the needs, lifestyle, and moods of the inhabitants while responding accordingly. This trend is termed as the Ubiquitous home and it is likely to gain immense traction during the forecast period.
Market segmentation by application and further analysis
Energy management and climate control
Security and access control systems
Lighting control systems
Home entertainment systems
The security and access control system segment shows an increased level of application due to the availability of open source cloud platforms that are prone to data theft and any invasion of piracy. With the advancements in the technology, this segment is expected to witness significant growth in the next four years.
Around $3.84 billion had been invested in smart home energy management systems only in UK. With the highly advanced wireless communication protocols, these system offer a great monitoring ability from remote locations. Bigshots like Google, Apple, and Microsoft have their presence in this market due to its high potential growth. For instance, British Gas, which is a leading provider of energy and home services in UK acquired AlerMe.com and entered smart home market place and Google acquired Nest Labs, a leading thermostat and smoke detector provider and leading innovator in smart homes. The market is likely to witness many similar collaborations in the future.