The Home Automation Market is expected to grow from US$ 40.10 Bn in 2017 to US$ 113.82 Bn by 2025 at a CAGR of 13.93% between 2017 and 2025.
Home Automation market is described as a range of on-premises or cloud-based capabilities that enable a house control its various operations such as in-door temperature, lights, entertainment units and security controls with the help of devices, such as smartphone, tablets and sensor remote controls. The concept of home automation has been in existence since long, however, lately, due to the suitable confluence of vital market, strategic, regulatory and technology trends, the home automation market is expected to witness a new phase in home automation market growth trend.
Aging population in US will drive the home automation market during the forecast period
The US comprises of a huge number of aging population and it is further expected to reach around 72 million by 2030. About two-third of the severely disabled older people are solely dependent on the family for assisted care. This results in great stress for the young working population of the country. Thus, a more feasible and scalable solution is required to meet this demand. Enabling the aging people to live self-reliantly instead of in an adult care facility helps in providing financial savings along with improving the quality of life, reduction in the burden on aged care facilities, and deliver relief to family members. Several home automation solutions such as video surveillance and security alarms are beneficial for elderly people and these systems are expected to drive the growth of home automation market in the US.
Rising cost of energy worldwide resulting in the increased adoption of home automation systems
The electricity prices globally are increasing constantly with the increasing demand for electricity. For instance, on an average, Mexico’s electricity prices are 25% higher than US and Canada. In 2016, the residential rate in Mexico increased by 22% for high-consumption users. Also, in June 2016, electricity prices for residential customers in South Australia were increased. This has created a concern for people residing in different countries regarding energy and cost savings. Thus, home automation solutions particularly, climate control solutions and lighting control solutions are expected to witness a growth and drive the home automation market. These solutions helps the users to control their electricity bills by operating lighting and thermostats of their houses.
Market initiative was observed as the most adopted strategy in global home automation market. Few of the recent strategies by some of the players in home automation market landscape are listed below-
2017: Schneider Electric signed partnership with Claroty for joint automation partner program.
2017: Creston Partnered with Sonos for the expansion of dealer offering.
2017: Legrand acquired OCL Architectural Lighting for serving OCL’s architectural lightning solution for commercial and high-end residential buildings especially in the US.
2017: Johnson Controls has launched a new Metasys 9.0 building automation system which offers substantial developments to the existing Metasys product line that consist of new IP/Ethernet-based controllers and user interface (UI) features.
Global Home Automation- Market SegmentationBy Product