Global home automation market to hit $78b by 2022
DALLAS—The global home automation market is forecasted to more than double by 2022, according to a recent Marketsandmarkets report, in part due to the Internet of Things and home automation features that save money by reducing energy consumption.
“The home automation system market is expected to reach $78.27 billion by 2022,” Rohit Waghadhare, team lead for Marketsandmarkets, told Security Systems News in an email interview. The global market size in 2016 is projected to be $38.7 billion, and will grow at a CAGR of 12.46 percent, he said.
“North America still dominates the market and this trend is expected to continue during the forecast period as well. North America is expected to reach $28.91 billion by 2022,” Wadhadhare said. The North American market stands at about $14.85 billion in 2016, and will see a CAGR of
While North America has the largest portion of the market, the Asia-Pacific region is projected to grow at the fastest rate. The North American market is growing, but it—along with the European market—is starting to see maturity in some areas. “Therefore, most of the home automation products, which had a substantial penetration rate in the last few years, are expecting to grow at a slower pace [in North America and Europe] during the forecast period,” Marketsandmarkets analyst Kumar Jayant told SSN.
The report studied home automation in two large segments: products in one category, and software and services in another. Marketsandmarkets expects lighting controls to be the fastest growing product in the market, followed by HVAC control, and security and access control.
There are two sub-categories of security in the report: video surveillance and access control. Geofencing, DIY devices, advanced surveillance security cameras such as IP cameras, and voice activation controls, are driving the security portion of the market, according to Jayant.
Geofencing is “gaining a lot popularity in North American and European market,” Jayant said.
Smart meters will be the fastest growing product for the market. “Smart meters use a real-time approach for energy metering,” Jayant said. “Residents can clearly understand the past-, immediate- and projected energy usage. This enables them to optimize their energy usage and thereby reduce the associated costs.”
The market for IoT products has expanded, in part, due to increased popularity among consumers for connecting devices, according to Jayant.
“We divided the software and services market broadly into two categories, proactive and behavioral,” Jayant said. Behavioral software and services compiles data on energy usage for the homeowner. Proactive software and services, on the other hand, “not only transfers energy consumption data to the end user but also gives a better sense of response to the user as to what action should be taken,” Jayant said.
Waghadhare said, “Behavioral software holds the largest share in 2015 but proactive [software] is expected to overtake behavioral during the forecast [period].”