Driven by consumers’ desire to live in ease and more comfortably, the home automation market is projected to grow 6.8% annually to reach US$116.26 billion by 2026, a significant jump from US$64.67 billion in 2017, according to Transparency Market Research (TMR), a U.S.-based market intelligence provider.
Greater availability of Internet of Things (IoT) devices is fueling the adoption of home automation. People nowadays prefer higher standards of living and have access to connected devices and appliances – smartphones, TVs, refrigerators, etc., says TMR.
The lighting segment is forecast to capitalize the most business opportunity, thanks to the growing demand for energy conservation and increasing integration of light products with the cloud and renewable energy sources.
Among the regions studied, Europe is poised to have the largest amount of sales, as the region stays committed to sustainable energy management and is equipping homes with advanced technologies.
In developing countries, increasing disposable income and growing preference for luxurious lifestyle have escalated the demand for home automation products.
Growing usage of smartphones which may act as a smart home control device, along with cost reduction measures made by smart home device makers, also helps to boost the home automation market in both developing and developed countries.
Barriers to Realize Full Potential
According to TMR, in developed countries, some automation products have reached maturity, and as a result, their demand may decrease in coming years.
In developing countries, on the other hand, lack of compatible infrastructure may prevent home automation‘s adoption.
Countries in Asia Pacific have witnessed rises in the disposable income for the middle class, and along with government support to implement next-generation technologies, the home automation market is expected to benefit.
According to TMR, leading players in the home automation market include Crestron Electronics, United Technologies Corporation, Siemens, Lutron Electronics, Honeywell, ABB, Legrand, Savant, ADT, Google, Schneider Electric, Amazon, 2GIG Technologies, SmartThings and Ingersoll-Rand.
Smart Bathroom Adoption
More than one market research company has predicted growth for the IoT industry. A Research and Markets’ report says the global smart bathroom market will grow at a 10.19% annually between 2018 and 2022.
The latest trend in the sector is a result of the growing focus on voice-driven user interface. “Vendors are trying to collaborate with major players offering voice-driven interfaces to develop a complete smart bathroom design. Companies such as Amazon and Microsoft are developing their voice-driven interfaces,” Research and Markets says.
According to the report, one of the major drivers for this market is the growing number of smart homes worldwide. Smart home solutions help homeowners in managing appliances and devices with advanced technologies such as AI, IoT and big data.
One of the major factors hindering the growth of this market is the growing cybersecurity and data privacy threats. The growing concerns regarding the security implications of IoT has affected buyer’s willingness to purchase. The increasing cybersecurity threats and fear regarding the lack of data privacy have affected the adoption of smart bathrooms.