“Recent years have seen a rapid increase in the use of home automation technology in the U.S. The digital revolution (especially in the world of IoT) has fueled an exciting new phase with companies in the home automation industry, offering consumers new and improved smart home technologies and giving rise to a totally interconnected, easy-to-control environment termed the “smart home.” These devices offer consumers remote control monitoring of common household devices and improved utility savings.
Research from Statista predicts that by the end of 2018, more than 45 million smart home devices will be installed in U.S. homes, making the average revenue per home around $490. This is an annual growth rate for the home automation industry of 22% year over year to nearly $20 billion in the U.S.
This growth is attributed to a number of factors, including the continuing rise in energy costs, decreasing cost of smart home technologies, current government policies and incentives regarding energy consumption, and increasing customer awareness of the impact of their consumptive activities on the environment. Statistics show that, currently, only 12-16% of U.S. homes own smart devices, leaving entire segments of the market untouched, due to the fact that mass adoption has its challenges.” – by Michael Cavvale
A smart home can be described as a natural extension of the trend which has seen automation gradually invade all walks of human life. In a smart house, various systems like lighting, security, ventilation,., can either be preprogrammed or altered from a remote location through connected devices.
Smarthomes use other concepts like Internet of Things (IoT) as well as WiFi to constantly keep track of changes and transmit relevant information to a user. The home automation hub provides various benefits remote monitoring and control, efficient use of home resources and the creation of a unified control base.
Thus, the Smart Homes Market is in a great position to register a strong amount of growth during the forecast period of 2017-2022.
Home automation companies consider the prime growth drivers to be a few factors like: growing residential demand for advanced security and monitoring systems; more awareness among the public regarding energy conservation and its effects on climate change; the superior experience as well as convenience provided by intelligent home systems when it comes to controlling various tools at home; and a gradual transition towards automatic control of home functions rather than operating them manually in an effort to save time as well as effort.
Currently, the Smart Homes Market is being dominated by the demand emanating from North America. The various initiatives and subsidies provided by the government have encouraged the people in the region to adopt various practices which align with smart house technology.
Energy conservation, integration with a smart grid, control of water and gas are some of the areas which have received a lot of focus so far. Meanwhile, Asia-Pacific is expected to be a key future demand driver as the emerging countries located in the region look to adopt the most advanced technology in an effort to battle climate change as well as to promote sustainable living.