The global KNX product market size was valued at USD 12,867 million in 2021. It is estimated to reach an expected value of USD 34,715 million by 2030, growing at a CAGR of 11.1% during the forecast period (2022–2030).
KNX is an open standard protocol for commercial and domestic building automation and can result in up to 60% energy savings. It combines all building’s functions such as heating, air-conditioning, and lighting into one intelligent system that lowers costs and enhances energy efficiency. Increasing electricity prices and awareness regarding the need for energy efficiency is the primary factor driving the market growth. Furthermore, increasing demand for comfort and versatility in residence and commercial buildings also contribute to the market growth.
Growing Awareness About Energy Efficiency to Augment Market Growth Prospect
Concerns regarding depleting resources and climate change have made efficient energy use a critical social issue. Buildings represent considerable energy-saving potential as they account for 40% of the total energy consumption. A building equipped with a KNX home and an automation control system can ensure economical energy usage and increase energy efficiency. KNX products meet the requirements of the top Energy Performance Class for building automation as per EN 15232; therefore, KNX is ideally suited to fulfill the tightened energy consumption requirements for buildings as KNX allows up to 50% energy savings.
Energy Savings with KNX (as per KNX Association report)
- Up to 40% in shading control
- Up to 50% in individual room control
- Up to 60% in lighting control
- Up to 60% in ventilation control
A study conducted at SciTec, the Science Department at Oundle School in Peterborough in the UK, revealed that significant savings in energy consumption are made possible with the use of KNX.
- 78% due to the use of natural ventilation
- 50% due to the regulation of underfloor heating in 16 zones
- 60 to 70% due to constant lighting control and additional presence sensors
- 40 to 60% energy saved in total as compared to a conventional school building
The conscious use of energy will prove to be beneficial for future generations and make homes more economical. With a KNX system, blinds, shutters, room thermostats, heating valves, window sensors, and light sensors can communicate. Furthermore, several dedicated research programs by various universities have shown startling energy savings results when comparing a KNX installation against conventional systems in a controlled research environment. Therefore, growing awareness regarding energy efficiency is expected to drive the growth of the KNX product market during the forecast period.
Increased Demand for Comfort and Versatility in Residence and Commercial Buildings
People nowadays pursue high and advanced standards of living where they have access to technologically connected devices, including televisions, refrigerators, smartphones, and many other electronic devices. The demand for comfort is constantly growing when managing air conditioning, lighting, and access control—in single-family houses and office complexes. KNX is an intelligent solution for the electrical installation of building technology, which opens up a new dimension of modern living. A KNX system helps adapt the home automation system to changing needs, increases the long-term value of the real estate, and decreases up-grading expenses in the long run. It allows users to conveniently control all the functions, even when the user is on the move, using their smartphone or tablet.
A KNX system is always alert during the night and when you are on the road; the intelligent network for home automation connects motion detectors, window glass break sensors, and blind controls with the alarm system, the emergency button, and your mobile to ensure your protection and security—day and night. KNX is one of the most widely used home automation systems in Europe, which has led to it being defined in the International Standard IEC14543-3 to become the world’s only standard for home and building automation. Therefore, increasing demand for comfort and versatility in residential and commercial buildings is anticipated to drive market growth in the coming years.
High Cost and Lack of Awareness to Impede the Market Growth
Low awareness regarding the advantages of KNX products in most of the western part of the world and developing economies is expected to hinder the KNX product market growth during the forecast period. KNX has high market penetration in Europe with more than a 70% market share. In the US and other similar regions, high prices, complexity, lack of wireless, and competition from Z-Wave and ZigBee pose stiff competition for KNX products.
In addition, most KNX products are significantly more expensive than their US equivalents. Furthermore, the KNX software platform ETS is considered complex, which is expected to restrain the market growth further. Therefore, a lack of awareness and the high cost of KNX products are anticipated to hinder the KNX product market growth in the coming years.
Increasing Popularity of Internet of Things (IoT) to Boost Market Opportunities
KNX is expected to emerge as the leading home automation system globally, and the integration with IoT will further bolster this likelihood. KNX is anticipated to provide future opportunities for KNX IoT manufacturers and system integrators with IoT technology and the latest IoT developments. These opportunities have enabled KNX manufacturers to expand the application portfolio of KNX products in energy storage, smart metering, energy management, mobility, renewable energies, and smart grids.
The KNX IoT solution will open the current KNX ecosystem to ‘out-of-the-box’ operation while allowing advanced configuration and adaptation to a specific customer or operational requirements. With the integration of IoT, KNX installations could be connected by specifying a URL and credentials, such as a username and password. Internet of Things (IoT) will likely provide significant opportunities for using more open and KNX standards in the coming years.
Type-wise, the KNX product market can be segmented into Sensors, Actuators, and System Devices
System Devices are the dominant segment and are estimated to grow at a CAGR of 10.5% during the forecast period. System devices are products used in KNX systems, such as power supplies, programming interfaces, routers, and couplers. These devices build an efficient communication infrastructure and allow system integration in different environments. Line coupler devices provide a data link between two separate BUS/KNX lines and isolate the BUS lines to allow independent local operation on a single BUS line. The KNX IP interface connects a PC to KNX components for programming and diagnostics within the system. The latest trend in system devices is to increase the capacity of devices, enabling the further integration of different functions or logic. Manifold controllers with integrated thermostats and dimmers with temperature probe inputs are recent examples of this trend.
Actuators are the second-largest segment. A KNX actuator takes the commands received from sensors, automatic control switches, or timers and converts them into actions, forming the interface between the KNX system and electrical devices. Actuators are switches and dimmers for lighting, shading, heating, etc. Sensors issue commands while actuators receive them. Currently, the mainstream and economical solution is the implementation of actuators with mechanical relay(s) to turn ON or OFF any loads. Companies are designing new actuators to meet the demand for KNX solutions in the commercial and residential sectors. In April 2019, Siemens introduced the new Gamma Instabus KNX-based Actuators for lighting and sun protection—these actuators keep workspaces glare-free during the day and prevent rooms from heating up.
The Sensor segment is the fastest growing. Many KNX sensor manufacturers are focusing on innovation in the design of KNX sensors; for instance, the ABB-tacteo KNX sensor by ABB, which does not require touch or contact input, is made from glass and designed for luxury hotels, public buildings, and high-end residential buildings. The true presence detector from STEINEL uses high-frequency (microwave) technology to measure micro-movements such as the rising and falling of a person’s chest as they breathe. With the increased usage of sensors in the modern world and constant demand for open standards, the sensors segment is expected to grow significantly in the coming years.
Reducing Operational Costs and Buildings’ Environmental to Drive the Segments’ Robust Market Share
The Commercial Building segment accounts for the largest share and is estimated to grow at a CAGR of 9.9% during the forecast period. Using KNX standard and KNX technology to integrate and control commercial buildings’ services has several benefits. Potential cost saving is critical for implementing an automation system in a commercial building. In commercial buildings, HVAC and lighting account for around 70% of energy consumption; this figure represents a significant amount of capital and an enormous environmental impact. Implementing KNX products in commercial buildings can save up to 30% energy, reducing operational costs and buildings’ environmental impact. Such factors drive the segment’s growth.
The Residential Buildings segment is the second largest. Home automation is undergoing technological advancement in countries such as the US and Western Europe in the form of smart home automation. KNX is the foundation of all applications within home automation. In addition, smart homes are increasing rapidly and form the essential backbone of futuristic smart cities; this is a prominent factor fueling the growth of the KNX product market in North America and Europe.
Why Europe is the Most Lucrative Market during the Assessment Period?
Europe is the largest shareholder and is expected to grow at a CAGR of 9.1% during the forecast period. In the region, Germany remains the largest single market. In Europe, KNX is the leading protocol for the smart homes market. In the whole home automation market in Europe, many installations will 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 home automation sector in the UK is set to grow. However, it is seen as one in its infancy stage compared with other developed European countries such as Germany, Belgium, and the Netherlands, thereby driving regional growth.
Asia-Pacific is the second-largest region and is expected to reach USD 8,638 billion by 2030, growing at a CAGR of 13% during the forecast period. The adoption of home automation systems has gradually risen in India as customers are increasingly 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 world’s leading brands, including ABB, Hager, Schneider, and Siemens, are active in intelligent buildings across Asia-Pacific.
Furthermore, the home solutions market in China is heavily dominated by KNX (with a 42% share), developed mainly by major Chinese and European smart building suppliers. Apart from this, more and more Chinese companies are paying attention to KNX technology, developing KNX products, and providing KNX solutions. Internationally renowned KNX manufacturers such as Weimar, Shanghai and Strang, Guangzhou Hedong, Guangzhou Vision, and Nanjing Tianshun are the first domestic manufacturers to develop KNX products. Shanghai Longchuang, Shanghai Fucheng, Tianjin Peiying, and other integrators who have done many successful KNX projects have joined KNX China and made positive contributions to the development of the China KNX product market.
The Middle East and Africa is the third-largest region. In this region, KNX has already been deployed in projects across Saudi Arabia, the UAE, and Qatar, particularly for lighting control and energy-saving applications. Furthermore, KNX is being promoted in the region due to the marketing efforts of key companies such as Siemens, ABB, Schneider Electric, Jung, and Hager, among others; these companies are expanding their presence in this region. The UAE has one of the most developed infrastructures in the Middle East, as the country extensively spends on infrastructure development, especially in cities such as Dubai and Abu Dhabi.
In addition, KNX National Group Middle East is a neutral and local association with a mission to promote KNX locally in the UAE. KNX has been in South Africa for more than eight years and has opened up a new dimension of modern living in the region. Many companies have taken an interest in the KNX protocol in the Middle East region over the years; for instance, initially, Siemens began investigating the viability of the KNX product business in South Africa, and in 2005, AMC German Technology ventured into the market with Gira’s KNX products.