Forecast: Global Home Automation Market to Be Valued at $21B by 2020

The home automation market was dominated by North America with around 40% of the total market in 2014.

DEERFIELD BEACH, Fla. – The global home automation market is forecast to reach $21 billion in 2020, growing at a compound annual growth rate (CAGR) of about 25% between 2015 and 2020, according to a new report published by Zion Research

The market was valued at around $5 billion in 2014, according to the report.

Home automation is growing in popularity among house owners owing to decreasing cost and simplicity in functioning of home automation systems. Tablet and smartphone connectivity with home automation systems is making it increasingly convenient for end users to manage their household activities.

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Additionally, enhanced Internet connectivity in developed economies such as the United States, Japan, United Kingdome, Germany, France, among other western nations, is driving demand for home automation systems. However, lack of awareness in end users among emerging and underdeveloped nations and high cost of home automation is expected to hamper market growth.

The home automation market was dominated by North America with around 40% of the total market in 2014. North America is followed by Europe and Asia Pacific. Europe is expected to witness robust growth in home automation systems market owing to strong demand from Germany, the United Kingdom and France.

Smart home system’s products are segmented into access and security control, recreation management, energy management, entertainment, as well as HVAC control. Wireless system management segment dominated the home automation market in 2014, accounting for more than 40% of the overall market. With increasing use of products enabled with WiFi technology, demand for wireless system management is expected to increase.

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