Home Automation Market will grow at CAGR of 12.5% to hit $46.22 billion by 2025 – Global Outlook by Size, Share, Top Leaders, Technology and Vendor Landscape Analysis
The growing use of smart home automation in the development of smart cities, coupled with government regulations related to energy use and emissions aid smart home automation market growth
The global home automation market is anticipated to grow at a CAGR of 12.5% during the forecasted period. In 2018, the market was valued at USD 20.31 billion, owing to the increasing customer preference towards managed home automation services. Home automation is gaining high momentum in developed countries owing to the incorporation of these products and services as a part of the lifestyle and high adoption rate of advanced technology.
The global home automation market research report assesses market demand and scenario over the period from 2015 to 2025. The report highlights the historic trends between 2015 and 2017 and the 2019 to 2025 market forecast. The report studies both at global and country level the current status and future market prospects. The global market for home automation is segmented by type, application, technology, and geography.
The report also throws light on various aspects of the home automation by assessing the market using value chain analysis. The report covers several qualitative aspects of the home automation industry in market drivers, market restraints and key industry trends. Furthermore, the report provides an in-depth assessment of the market competition with company profiles of global as well as local vendors.
The home automation system is explained as a technological solution that let’s automate the bulk of electrical, electronic and technology-based tasks within a home. It basically amalgamates software and hardware technologies that enable management and control over devices and appliances within a smart home. Home automation is also referred to as domotics and a smart home is a home with an automation system. With the advent of the Internet of Things (IoT) and the proliferation of smartphones and gadgets across the globe, the home automation market is expected to rise with a growth rate of double digits. Also, the home automation market is driven by the increasing energy costs, which boosts energy efficiency and optimization of energy consumption through home automation. As lighting controls can be set on timers, preventing lights from staying on all day or night.
The “Global Home Automation Market Size by Type (Custom automation (luxury) systems, Mainstream automation systems, DIY (Do-It-Yourself) automation systems and Managed home automation services), by Application (Lighting, Safety and security, HVAC, Entertainment, Energy management and others), by Technology (Wired systems, Power-line systems, Computing networks and Wireless systems), by Region (North America, Europe, Asia Pacific, Central & South America and Middle-East & Africa) and Forecast 2018 to 2025” study provides an elaborative view of historic, present and forecasted market estimates.
Based on the type, the home automation is segmented as Custom automation (luxury) systems, mainstream automation systems, DIY (Do-It-Yourself) automation systems and Managed home automation services. The Do-it-Yourself model is economical but requires technical expertise and custom automation is expensive. Hence, consumers prefer managed services option which involves a telecom operator or the broadband company providing monitoring, lighting, air conditioning, and security alert system solutions.
By technology, wireless systems are expected to dominate the home automation market, it is projected to have the highest CAGR of 14.0% in the forecast period. On the basis of application, the entertainment segment is predicted to grow with the highest CAGR of 14.0% during the forecast period due to the growing number of subscribers in the entertainment industry in North America.
According to the regional analysis of the home automation industry, North-America is projected to have the highest rate of CAGR about 30.8% during the forecast period owing to increased application in safety and security. In 2018, the market was dominated by the North America region with strong spending on custom automation (luxury) systems. This region has a high adoption rate of home automation due to the growing concerns of safety and security with higher usage of electronic gadgets.
The global home automation market is a highly fragmented industry with strong competition among the well-established and new emerging players. These players aim to gain an edge over the other players through innovative product development by investing high in R&D along with player acquisitions. Upcoming wireless technologies such as 5G, Bluetooth, ZigBee, Z-Wave, and other proprietary protocols will have a significant impact on the overall growth of the home automation market in coming years.