The increasing electricity tariff prices need for energy-efficient products, and surging demand for comfort and versatility in both residential and commercial buildings drive the market growth. The surging popularity of the Internet of Things (IoT) is paving the way for the growth of the KNX market. Instant integration capabilities with modern and existing smart building and home systems for energy management in buildings drive the market growth.
The KNX products market is expected to reach USD 42.6 billion by 2029, with a CAGR of 15.9% during the forecast period, 2020–2029.
Surging Need for Energy Efficient Products to Mitigate Rising Electricity Tariff Rates
Buildings represent considerable energy-saving potential as they account for 40% of the total energy consumption. Therefore, integrating KNX products with building ensures economical energy usage, subsequently increasing energy efficiency. Additionally, the adoption of KNX products allows blinds, shutters, room thermostats, heating valves, window sensors, and light sensors to communicate with each other through a single platform. As per the KNX association, one of the industry associations in the home and building automation markets, the KNX products meet the requirements of the top energy performance class for building automation as per EN 15232 standards. Owing to this, KNX is ideally suited to fulfill the tightened energy consumption requirements for buildings as KNX allows up to 50% energy savings.
Some other features stated by the KNX association include up to 40% energy savings in shading control, 50% energy savings in individual room control, 60% energy savings in lighting control, and up to 60% energy savings in ventilation control. To support these facts, the Science Department at Oundle School in Peterborough in the U.K. conducted a SciTec, which revealed that significant savings in energy consumption are made possible with the use of KNX, such as;
- 78% by using natural ventilation
- 50% by regulation of underfloor heating in 16 zones
- 60 to 70% by constant lighting control and additional presence sensors
- 40 to 60% energy saved in total as compared to a conventional school building
Growth of Internet of Things (IoT)
As per the SR analysis, KNX is expected to emerge as the leading home automation system globally. In line with this, the KNX manufacturers are expanding their product portfolio in terms of energy storage, smart metering, energy management, mobility, renewable energies, and smart grids. The KNX IoT solution is projected to unlock the current KNX ecosystem while still allowing advanced configuration and adaptation to the customer. Additionally, with the integration of IoT, KNX installations could be connected by URL and credentials, such as a username and password. In light of these factors, IoT is likely to provide significant opportunities for the use of more open standards and KNX standards during the forecast period.
The advent of Innovative Sensors to Drive the Product Segment
The product segment dominates the market on account of the need for highly efficient devices for energy saving. Furthermore, the products have been segmented into sensors, actuators, and system components. The sensor accounted for the largest market share in 2018 and is expected to dominate the market during the forecast period (2020-2029). Surging the need for sensors to measure parameters with extreme precision, such as temperature, light, humidity, and current drawn drives the segment growth.
Several KNX sensor manufacturers are actively working to develop innovative KNX sensors. For instance, the ABB developed ABB-Tacteo KNX sensor for luxury hotels, public buildings, and high-end residential buildings. However, the lack of technical expertise among the residential sector and dependence on third-party system integrators and services providers hampers the segment growth.
HVAC System Segment to Dominate the Market
The HVAC system segment is projected to dominate the KNX products market. The HVAC system is witnessing huge demand among the installers, technicians, and smart-home specialists that are acquainting their buildings with modern HVAC solutions. Additionally, integrating KNX technology with HVAC systems covers all applications that include heating, ventilation, and air conditioning of buildings. The HVAC system is an integral component of air conditioning and building automation, further driving the segment growth.
Commercial Segment to Hold 38% of Shares in the KNX Products Market
The commercial segment held about 38% of shares in the KNX products market. The KNX products offer solutions for commercial buildings such as offices, hospitals, airports, stadiums, and other sports facilities. As per the ABB Group, KNX products can reduce electrical energy consumption due to lighting in commercial buildings, such as
- Constant light control by approximately 20%
- Presence detection by about 8–13%
- Automatic shading for optimized daylight usage by around 6%
- Automatic shading for optimized room climate by about 40%
Europe: Largest Shareholder with More Than 37% Value Share as of 2019
Globally, Europe accounted for the largest market share in 2019 and is expected to dominate the market during the assessment period. In Europe, KNX is the leading protocol for the smart homes market. In the whole home automation market in Europe, many installations incorporate more than one protocol, and all protocols have their strengths and weaknesses. For instance, in Germany, KNX holds a 56% market share in the total home automation market. The KNX Association study found that KNX holds about 27% market share in the U.K.’s home smart systems market. In France, KNX remains popular among all communication protocols, accounting for about 32% of shares in the home smart systems market.
India to have the Fastest Growing Home Automation Market in Asia-Pacific
The adoption of home automation systems has gradually risen across Asia-Pacific as customers are becoming tech-savvy. The home automation market in India is set to grow at a rate of 20–25% over the next 5–6 years, which is expected to create significant opportunities for KNX products in the Indian market. The region is also backed by the presence of ABB, Hager, Schneider, and Siemens in the field of intelligent buildings. Additionally, in China, the whole home solutions market is heavily dominated by KNX (with a 42% share), developed by major Chinese and European smart building suppliers.