Forecast: Global Home Automation Market to Exceed $21B in 2020
A research firm calculates the home automation market is growing at a compound annual growth rate (CAGR) of 26.3%.
ALBANY, N.Y. – The global home automation market was valued at $4.4 billion in 2013, according to a new market report published by Transparency Market Research.
The research firm calculates the home automation market is growing at a compound annual growth rate (CAGR) of 26.3% and will be worth more than $21 billion in 2020.
The home automation market is primarily driven by growing need for effective solutions in various domestic applications such as lighting, life safety and security, and energy management. A high degree of Internet connectivity and penetration in developed countries such as the U.S., United Kingdom, France, and Germany is also contributing to the growth of the market. The development of smart cities and high-tech homes in the Middle East and Asia Pacific region is also influencing the growth, according to the report.
In terms of application, the life safety and security segment held the highest market revenue share accounting to $1.51 billion in 2014 and is expected to maintain its leading position throughout the forecast period, according to the research firm. Demand for life safety and security home automation systems is attributed to growing need for remote home monitoring solutions and increasing risk of criminal activities such as theft and robbery. The life safety and security segment is followed by entertainment and lighting segments. The entertainment segment, including home audio and video, accounted for 24.7% of the overall home automation market.
The wireless system segment of home automation technology held the largest revenue share, accounting for more than 50% of the overall market. With the increase in the number of products equipped with Wi-Fi technology, the demand for wireless technology-enabled home automation solutions are experiencing substantial growth globally. Power-line systems is projected to be the second fastest growing networking technology segment after wireless systems and is expected to attain a significant growth in the near future. Power-line systems segment is expected to grow with a CAGR of 24.2 % over the forecast period, from 2014 to 2020, according to the report.
Geographically, North America led the home automation market in 2014 and the region is expected to continue its dominance by 2020. Consumer awareness and affinity toward new technology are further contributing to the growth of home automation market in North America. Europe and Asia Pacific followed North America in the global home automation market to collectively account for more than 40% of the global market revenue share.
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