DALLAS — The global smart homes market was valued at $20.38 billion in 2014 and is expected to reach $58.68 billion by 2020 at a compound annual growth rate (CAGR) of 17% over the forecast period between 2015 and 2020. North America will lead the chart and is the birthplace for various industry majors. The North American market is driven by gaining traction for safety, peace of mind, increased awareness and better product offerings. The benefits of smart homes can only be realized if the technology becomes affordable for common people and accessible to those for whom it is essential. However, this is likely to happen if a broader consumer market gets traction by pushing down prices and creating more awareness.
Smart homes refer to a residence equipped with computing and information technology devices that anticipate and respond to the needs of the residents; thus, working towards enhancing their comfort, convenience, security, and entertainment through the automation of technology within a home. Smart homes have already started attracting stakeholders in the market including architects, developers, service providers, and device manufacturers. Complete report on Smart Homes Market by Product (Energy Management System, Security & Access Control, Entertainment Control, and HVAC Control), Protocol and Technology (Protocol, Cellular Technology, and Communication Technology), Service (Installation, and Customization), and Geography (North America, Europe, APAC, and ROW).
The possibility of reduction in the prices of smart homes is driven by the scale of economies and expected adoption of the technology is the key to the market’s growth in the future. Stakeholders are keen in developing versatile and widely accepted standards in smart homes. Regardless of the technology and cost of ownership, the operating & maintenance cost, complex installation, user awareness, ability to link disparate systems, Internet security, and demand for housing are some of the challenges in front of players in the smart home market. However, this market is expected to grow at a decent pace in the coming years.
Some of the prominent market players are ABB Ltd, Siemens AG, Schneider Electric SA, Ingersoll-Rand PLC, Legrand S.A, Lutron Electronics Co., Inc, Emerson Electric Co, Crestron Electronics Inc, Control4 Corporation and Honeywell International Inc.