The market revenue of $4.8 billion in 2012 is expected to grow up to $35.3 billion by 2020, according to a report by Allied Market Research. The global smart home and buildings market is expected to grow at a CAGR of 29.5% between 2012 and 2020. The main drivers for the growth of the market are government regulations, rising energy costs and raising awareness with respect to environmental concerns.
Energy efficiency has become the need of the hour as the global energy cost is increasing owing to the ever growing demand and environmental concerns of greenhouse gas (GHG) emission. The construction business is embracing the energy efficiency trend and using building automation system to meet the growing demand for energy efficiency in smart homes and buildings. However, there are some factors such as high upfront cost and lack of standards and interoperability, which are expected to act as restraints for the market growth.
The revenue of safety and security application is expected to reach $6,132.4 million by 2020 with an expected CAGR of 34.6% from 2013 to 2020.
North America is expected to generate revenue of $12.4 billion by 2020 growing at a CAGR of 25.9% from 2013 to 2020. However the Asia-Pacific is a high-opportunity market that is expected to grow at a CAGR of 37.7% from 2013 to 2020.