Buildings furnished with advanced communication technologies, intelligent systems and protocols thus providing the occupant with high level of comfort, luxury and security are termed as smart homes. With technological advancement entering into every sector, the home and living rooms too have evolved with the introduction of such technologies. Living standards in synchronization with technology has paved the way for energy efficiency, easier and luxurious life. Smart home technology aims at incorporating entertainment, security and mobility, comfort etc. by providing users with convenient solutions.
The smart homes market is expected to grow at a CAGR of14.5% through the forecast period with current valuation at $29.5 bn in 2016. With the evolution of technology over the years, the adoption of controlled heating, lighting, electronic appliances such as AC, CCTV cameras, washing machine, TV etc. inside home premises have gained recognition significantly. Electronic appliances being operated from centralized device such as a tablet or a smart phone is an exclusive feature of smart homes. Smart homes offer unparalleled security, energy efficiency and value, much to the likings of consumers globally. The major feature of smart home lies in monitoring, managing and controlling of home devices or appliances from any given point at any given time which in turn has attracted consumers to great extent. Additionally, emergence of IOT (Internet of Things), technologies including Wi-Fi, near field communications, ZigBee protocols, wearable’s and smartphones have increased the demand for smart home acceptance on a global basis. The introduction of CCTV cameras and security alarms in smart homes offers a lot of security to consumers wherein any mishap like theft or burglary can be detected even in the absence of occupant at the premise.
Strong consumer interest, greater accessibility and incremental technological innovations are certain factors which is likely to augment the smart homes market in the coming years. Additionally, the rising levels of expendable income from a certain section of end-users have curved the way for adoption of smart homes to enhance living conditions. Technology giants including Google, Samsung and Apple are stepping into the smart homes market with introduction of products like Brillo and HomeKit thus, attracting a huge block of customers. Although smart homes account for green living through installation of energy efficient appliances, high investments upfront may hinder the adoption rate of smart home technology.
Smart Homes market can be bifurcatedbased on its widespread application and by geographical expansion. As per report, Security and Access control, Lighting control, Entertainment control, HVAC control and Home Health control among others are listed under the application segment. Security and access services account for the major market share in Americas whereas lighting control is estimated to grow at fastest CAGR through forecast period. The service section controls maintenance and installation and customization & renovation.
North America stands out to be the leader in Smart Homes market for holding the major shares on a global basis and is expected to remain the same through the forecast period. Followed by North America Europe holds the second largest market share.Significant amount of contribution to the Smart Homes market in America and Europe is achieved by innovative product launches and extensive investments on research & development. Asia Pacific region is expected to experience a prominent growth through the forecast period as Southeast Asia already accounts for one-fifth of global market of smart homes.
Some of the major players involved in smart home market are Honeywell Int. Inc., Siemens AG, Google, Schneider Electric, IBM, Lutron Electronics, General Electric, Smart home Inc., Cisco Systems, LG Electronics, United Technologies Corporation among others.