Home Automation Market Size, Growth and Strategy Analysis 2025

Home Automation Market Forecast to 2025 – Global Analysis – by Product (Entertainment Centers, Security & Access Control, Lighting Control, Climate Control, and Outdoor Automation System) and Networking (Wired, Wireless, and Power-Line)

Publication Month : Oct 2017

  • Report Code : TIPTE100000139
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 190
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The home automation market was valued at US$ 40.10 billion in 2017 and is expected to reach US$ 113.82 billion by 2025; it is estimated to register a CAGR of 13.93% from 2017 to 2025.

Home automation provides high-end solutions and uses advanced digital technology to make the operation of a variety of household equipment more convenient. It improves efficiency and performance when automating the home or any domestic operations. Home automation entails the automatic control of all electrical gadgets in a home and the ability to control them remotely via a wireless connection. Consumers increasingly demand customization and professionally built systems that are at their convenience and relatively simple to operate. Furthermore, home automation systems provide centralized control of lighting, HVAC, audio/video systems, kitchen appliances, security systems, and other in-home devices.

Furthermore, home automation allows devices to trigger one another, eliminating the need to control them manually via an app or voice assistant. For example, individuals can schedule their lights to turn on/off or have their thermostats turn up the A/C before they return home from work. Home automation makes life easier and saves money on utility expenses such as heating, cooling, and electricity. Home automation can also lead to increased safety with the Internet of Things devices such as security cameras and systems. These factors are driving the home automation market growth.

Increased demand for energy-efficient solutions, significant growth in the IoT market, convenience and ease of use, technological advancements, increased smartphone users, and heightened security concerns are driving the home automation market. Due to the high cost of automated homes and a lack of awareness in some developing and underdeveloped regions. The growth of the home automation market is opportunistic due to an increase in the usage of automated services and government incentives for green initiatives. Furthermore, the need for energy-efficient solutions and an increase in demand for home safety and security are likely to drive the home automation market growth.


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Home Automation Market: Strategic Insights

home-automation-market
Market Size Value inUS$ 40.10 billion in 2017
Market Size Value byUS$ 113.82 billion by 2025
Growth rateCAGR of 13.93% from 2017 to 2025.
Forecast Period2017-2025
Base Year2017
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Home Automation Market Insights

Upsurge in Investments in Major Companies

Owing to the rapidly increasing technological advancement globally, home automation is no longer a fiction. This is majorly because of the cash inflow in the market by the investors and service providers. The home automation market gained significant attention from the industries after major brands such as Honeywell and Vivint explored opportunities afforded by home automation and initiated noteworthy capitalization in the home automation market. However, now there are several brands in home automation market that have extensively applied their resources to briskly improvising home automation systems and also promote these systems to attract potential customers. For instance players such as Apple, Google, Nest Labs, AT & T (Digital Life), Amazon (Echo), Xfnity (Comcast), and Xiaomi are already marketing their products in the home automation market. This has further led to increase in production, making these systems more accessible and affordable to an average consumer.

Networking-Based Market Insights

Modern homes have a plethora of connected devices, such as smartphones, laptops, electronic door locks, thermostats, and entertainment units that demand for a robust and resilient networking infrastructure for their potential functioning. As the count for the IoT devices over the residential network increases, difficulty in functioning of these networks is also expected to increase. Due to the complicating network structure, users are anticipated to frequently experience certain issues such as latency in audio/video streaming and fluctuating signals. These factors propel the need for solutions that would help in uninterrupted functioning of connected devices, in turn propelling the home automation market growth.

Product-Based Market Insights

The home automation market involves automatic monitoring and controlling of several home appliances and devices using different technologies and controllers through smartphones, tablets, desktops and laptops. Various home automation products are available in the market that manage household security and safety, reduce energy consumption, and offer entertainment options, with a range of customized options to fit different lifestyle and budget. This expanding home automation market provides a wide-range of home automation systems from varied manufacturers. The availability of wide variety of automation products is augmenting the home automation market growth.

The players operating in the home automation market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key home automation market players are listed below:

  • Focal Point (US), a manufacturer of architectural lighting for non-residential buildings, was bought by Legrand in February 2020. Legrand's position as the industry leader in lighting control solutions for both residential and commercial product offerings in the US will be strengthened by this acquisition.
  • In November 2019, Siemens, the German industrial titan, announced an agreement to buy US startup Pixeom for an undisclosed sum to boost its industrial automation, digitalization division, and smart home automation.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Product and Networking

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies

1. Johnson Controls International Plc2. Siemens AG 3. Legrand4. Schneider Electric SE5. Honeywell International Inc.6. Control4 Corporation7. ABB Ltd. 8. Crestron Electronics Inc.9. Leviton Manufacturing Company, Inc.10. Lutron Electronics Co., Inc11. Ingersoll-Rand plc

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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