DALLAS — The global smart homes market is forecast to be worth $51.77 billion by 2020, growing at an estimated compound annual growth rate (CAGR) of 17.74 percent from 2013 to 2020, according to a new Smart Homes Market report published by MarketsandMarkets.

Smart homes are defined as a residence that integrates various home systems, which allows these systems to communicate with one another through a home controller. Smart homes encompass HVAC, energy management systems, security, access, lighting, and more.

The Smart Homes Market report covers the industry on the basis of products, services, and geography. The products section covers HVAC control, security and access control, lighting control, entertainment systems, and home health systems, along with their current and future estimations. Of all the major products, security systems are expected to have the highest adoption rates in the mass market. The services section covers installation and maintenance, and renovation and customization. The geographical analysis includes the Americas, Europe, and Asia-Pacific.

The major drivers for the global smart homes market are energy and cost savings, security and convenience, reduced carbon emissions, aging population, government initiatives, and more. Factors inhibiting the market are lack of standardization and high initial cost.

The United States will remain the leading market in the Americas for smart homes throughout the forecasted period due to its high adoption rate and continuous development.

Publication date: 10/21/2013

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