Traditional home automation devices were designed to control systems within a house and within a limited range of connectivity; however, with recent developments across different areas of connectivity of appliances and devices, these systems enable users to monitor and control them even when they are on the move.
This includes mobile connectivity features, an integral component of smart homes provided by device manufacturers; and compatible communication protocol and technology based products offered by Internet Service Providers.
Even though the concept of smart homes has been in existence for a long time, the market has witnessed a profound growth, mainly, during the last five years. The smart homes market is highly fragmented and expected to get consolidated.
The smart homes service providers are beginning to gain traction in the marketplace, and we could see more smart homes technology players entering the market before an inevitable consolidation occurs.
The global smart homes market was valued at $20.38 billion in 2014 and is expected to reach $58.68 billion by 2020; the market is projected to grow at an estimated compound annual growth rate (CAGR) of 17% between 2015 and 2020.
The smart home market revolves around green home solutions, which include smart energy management systems; and follow a minimal usage of energy and monitoring of appliances.
With the increasing awareness about energy efficiency and the optimum utilization of the same, a majority of home owners are driven towards the smart home concept that not only offers better energy management but also provides security, convenience, and comfort. The real estate industry has been witnessing a massive transformation in the recent past with innovative concepts ever since, the concepts of home automation, smart homes, and connected homes have materialized.
A strong impetus from smart home product manufacturers and concerns related to security and energy savings have gained prime importance in the smart homes market. Smart home device manufacturers are also coming up with innovative wireless technologies across different sectors, which include security control & access control, entertainment control, energy management systems, and HVAC control.
North America is expected to retain its position as the largest smart homes market. The revival of construction activities, especially with regards to new residential buildings and renovations, is expected to support the growth of the North American smart homes market.
The U.S. will remain the major market for smart homes throughout the forecast period, due to its high adoption rate and continuous development. High investments in building infrastructure and the need to lower power consumption are further expected to drive the demand for smart homes systems, especially in Asia-Pacific and Europe.
The smart homes market research report provides a clear picture of the state of the global smart homes market and sub markets. The report also provides a micro level analysis of the factors affecting the market, key market trends, industry drivers, and challenges for a better understanding of the market structure.
Major companies involved in the global smart homes industry that are included in this report are Siemens AG (Germany), Schneider Electric S.A. (France), ABB Ltd. (Switzerland), Ingersoll-Rand Plc.
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