DALLAS — The global smart homes market is expected to grow at a compound annual growth rate (CAGR) of 17 percent between 2015 and 2020, and reach $58.68 billion by 2020, according to a new market research report published by MarketsandMarkets.
The report notes that 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 (ISPs). Even though the concept of smart homes has been in existence for some time, the market has witnessed significant growth during the last five years. The smart homes market is highly fragmented but a consolidation is expected. Smart home service providers are beginning to gain traction in the marketplace, and more smart home technology players could enter the market before consolidation occurs.
The global smart homes market was valued at $20.38 billion in 2014 and is forecast to reach $58.68 billion by 2020. The smart home market revolves around green home solutions, which include smart energy management systems and monitoring of the home’s HVAC system and appliances. Many homeowners are attracted to the smart home concept not only because it offers better energy management and energy efficiency, but also for security, convenience, and comfort. The real estate industry has been witnessing a transformation 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 efficiency have gained prime importance in the market. Smart home device manufacturers are also developing wireless technologies across different sectors, which include security and access control, energy management, and HVAC control.
North America is expected to retain its position as the largest smart homes market. The revival of construction activities in 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 expected to drive demand for smart homes systems in Asia-Pacific and Europe.
For more information on the smart homes report, click here.
Publication date: 2/23/2015