The market for home automation was worth $4.41 billion globally last year, and is expected to see a compound annual growth rate of 26.3 percent between then and 2020.
That’s the word from Transparency Market Research, which today, October 10, 2015, published a report on the topic.
In-home energy, entertainment, HVAC, lighting, and safety applications are key drivers of the growth on this front, according to the firm, as is growing Internet penetration in France, Germany, and the U.K. However, it is North America that is leading this market, the firm notes, adding that it is expected to stay in this position through 2020. Asia Pacific and Europe are next, together accounting for 40 percent of the total market.
“The safety and security segment has been earning the highest revenue so far in the global home automation market,” Transparent Market Research says. “In the coming few years, the energy-conscious population, who need better energy management solutions, will opt for automated applications. Additionally, increasing usage of smartphones, tablets, and other handheld devices is also adding to the convenience of establishing home automation in newer constructions.”
While Transparent Market Research sees blue skies for the connected home, the Argus Insights Connected Home Demand Report released last month indicates there’s declining demand for smart home solutions.
And a Coldwell Banker Real Estate LLC and CNET survey for which results were made public in August indicates 28 percent of U.S. adults own at least one smart home product and that nearly half of people age 18 to 34 use home automation technology. More than half of those surveyed said they use such solutions in the living room, 45 percent said they are in use in the bedroom, 35 percent use them in a family room, 30 percent employ them in the kitchen, and 21 percent in the dining room.
Google is, of course, one of the key companies leading the way on the smart home front. The company last year bought smart thermostat company Nest for $3.2 billion. And this autumn Google introduced a new Wi-Fi router called OnHub aimed at the smart home opportunity.