Preference Towards Ease of Living to Push the Demand
The global home automation market is expected to witness highly competitive landscape during the forecast period ranging from 2018 to 2026. This is due to the presence of multiple players making continuous efforts in to enhance the product quality through increasing technological development, states Transparency Market Research (TMR). The key players in the market are also making conscious efforts for product development, making strategic alliance and collaborations, and launching new technically advanced products. Some of the leading players in the global home automation market are Crestron Electronics, Inc., United Technologies Corporation, Siemens AG, Lutron Electronics Co., Inc, Honeywell International Inc., ABB Ltd., Legrand SA, Savant Systems LLC, ADT LLC, Google Inc., Schneider Electric SE, Amazon Inc., 2GIG Technologies, SmartThings Inc., and Ingersoll-Rand plc.
According to the TMR analysis, the global home automation market is expected to rise at a CAGR of 6.8%. The valuation for the market is projected to reach up to US$ 116.26 bn by the end of the forecast period in 2026, which was US$ 64.67 bn in 2017. The lighting systems segment under the application is projected to be the most lucrative segment for the reason of rising need to decrease the energy consumption by integration of lighting products by using cloud and renewable sources of energy. As per the regional analysis, Europe is leading the global home automation market by having largest share of revenue and volume. Providing sustainability and by equipping homes with advanced technology have made the region lead the market.
Increasing Connectivity of Electronic Devices to Boost the Demand for Home Automation Market
The market for home automation is gaining momentum due to increasing incidence of internet of things mainly in the developed countries. People nowadays prefer high and advance standards of living where they have access to technologically connected devices, which includes televisions, refrigerators, smartphones, and many other electronic devices. Moreover, increasing disposable income and growing preference for luxurious lifestyle in developing countries have escalated the demand for home automation market. Furthermore, rapid adoption of smartphones and gadgets are acting as the major drivers in the home automation market. The home automation systems are also enabled with cost reduction measures that has grown the demand for home automation market both in developed as well as in developing countries.
Lack of Compatible Infrastructure to Restrict Growth of Home Automation Market
On the other hand, there are certain restrain that might restrain the home automation market to grow at its full potential. In developed countries, some home automation products have reached at the stage of maturity because of which their demand may decrease in coming years. In developing regions due to lack of compatible infrastructure the use of home automation gets restricted in certain areas. However, urbanization and developing favorable environment will help in rising demand for home automation systems in coming years. Countries in Asia Pacific region are in favor of adopting new technologies with the rise in their disposable income of middle income group and increasing government efforts to support the development through technological advancement could boost the market for the global home automation market.