Global Home Automation market is projected to reach US$95.6 billion by 2024, driven by the growing consumer focus on convenience, comfort, safety, security and energy efficiency through automation of home devices and appliances. The introduction of new technologies designed to improve functionality of home automation solutions also favors market growth.
Home automation is the process of automating the entire home environment by means of a combined in-built monitoring system, and involves the use of computers and information technology for controlling various equipment, devices and appliances in homes. A home automation system controls the operations of appliances, lighting, climate, entertainment systems, and security systems. Based on personal preferences, users can set a schedule for various home devices and appliances, thus enhancing convenience, comfort and security of living space. While automation has been part of daily lives of people for several years, it is only now with constant advancements and rapid pace of technology evolutions that automation is enabling people to control and monitor all aspects and functions of their homes. Led by persistent advancements and evolutions and the numerous advantages offered by the technology, home automation continues to gain popularity across the world. The ability to remotely control home functions from any location using a smartphone or a mobile device is proving to be an attractive aspect for homeowners and residential buildings. Home automation also enables monitoring, controlling and minimizing of energy consumption through remote monitoring and via features such as inbuilt timer settings. The rising adoption of home automation technologies in an expanding range of applications including lighting, security, energy management, and HVAC systems is expected to fuel growth in the home automation market in the coming years.
Over the years, home automation technology has evolved significantly in line with increasing consumer focus on safety, security, convenience and connectivity, thus aiding growth of the home automation market. Rapid adoption of automation technologies in residential sector will continue to fuel market growth, given the ability of smart home automation solutions to enhance convenience by enabling remote monitoring in residences. Changing lifestyles, rising disposable incomes of people, improving standards of living and growing consumer willingness to invest in home enhancement initiatives are driving demand for home automation products and solutions. The market is poised to grow steadily over the next few years driven by increasing urbanization, changing demographics and technology innovations targeting at improving functionality of home automation solutions. Another important growth driver is the aging global population and rising standards of living, particularly in developing countries. Safety has and will continue to be an important growth driver for the aging population to adopt home automation to avoid danger to life and property.
Developments in the construction industry and the increasing focus on energy efficient homes and buildings are also favoring the home automation market. Resurgence in the construction industry, and in particular the rise in the number of new residential buildings, is driving demand for home automation products. The market benefits immensely from the widespread access to high-speed Internet networks and the increasing proliferation of smartphones and tablets. Factors such as growing Internet of Things (IoT) market, rising awareness about the benefits of remote home monitoring among consumers, the increasing adoption of cloud-based technologies, and reducing prices and complexity of home automation products are also favoring market growth. The development of innovative, advanced and energy-efficient automated systems and the adoption of strict government regulations related to energy usage and emissions are expected to fuel demand for home automation solutions. In particular, constant advancements in security technology products such as sensors, detectors and smart cameras are favoring market growth.
The United States represents the largest regional market, worldwide. Growth will be fueled by the escalating demand for energy management systems and the trend towards green homes. Factors such as rising consumer awareness about advantages of home automation, rapid pace of technology advancements, and availability of fast Internet connectivity are also favoring growth. Asia-Pacific is forecast to register the fastest CAGR of 15.6% over the analysis period, driven mainly by the increasing number of new residential projects and the increasing focus on building infrastructure facilities. The growing awareness about novel technologies such as voice-controlled smart home devices as well as increasing needs of the region's geriatric population are also favoring market growth. The increasing awareness about security, safety and energy efficiency of homes also augurs well for the home automation market.
Major players in the market include ABB Ltd., Abilia AB, AMX, Control4 Corporation, Crestron Electronics Inc., Emerson Climate Technologies Inc., HomeSeer Technologies, LLC, Honeywell International Inc., Leviton Mfg. Company Inc., Legrand, Lutron Electronics Co. Inc., Nest Labs, Savant Systems LLC, Schneider Electric, Siemens AG, SmartThings, TELETASK, Vera Control Ltd., and Vivint Inc., among others.