Home Automation System Market Opportunities and Challenges
Posted by edwardzmusso on April 19th, 2022
The report \"Home Automation System Market with COVID-19 Impact Analysis, By Management, Product (Lighting Control, Security & Access Control, HVAC Control, Entertainment & Other Controls), Software & Algorithm, and Region - Global Forecast to 2025\", is projected to grow from USD 40.8 billion in 2020 to USD 63.2 billion by 2025; it is expected to grow at a CAGR of 9.1% during the forecast period. Owing to COVID-19, the home automation system market is estimated to face headwinds for 2019–2020. As millennials account for the majority of new home buyers, growing homeownership is one of the major factors driving the adoption of home automation systems. Insurance companies offering attractive discounts to house owners having inbuilt access control and security systems is expected to help consumers to save on house insurance premiums and cover the cost of adopting home security systems for residential applications. The development and implementation of IoT technology in home automation systems is expected to act as a growth opportunity for the market.
Market for cloud-based management is projected to grow at a higher CAGR during the forecast period
Cloud-based management systems leverage app-based smart home technology that utilizes the home network to communicate with the cloud. As long as the user and their smart home devices are connected to the internet and the cloud server, the smart devices can be controlled from anywhere. Cloud-based management can control different smart home devices. These hubs are small and affordable. A majority of smart home devices are also smart speaker compatible, which itself is connected to the cloud. With an increase in buyers purchasing DIY home automation solutions and improved hubs being introduced in the market, the market for cloud-based management is expected to grow at a higher rate during the forecast period.
Market for lighting control systems projected to grow at highest CAGR during the forecast period
Lighting control systems are critical for home automation. Although lighting systems consume less energy than HVAC systems, they are installed in large numbers due to which the automation of these systems becomes necessary. Lighting control systems help in promoting energy-efficiency and cost savings in an easy and accessible manner while addressing the existing demands for environmental sustainability and responsibility. The market for lighting control systems is expected to grow at the highest CAGR during the forecast period. This is due to the wide use of LED lighting and the need for energy efficiency. Smart lighting can not only change color as per the mood of the user but is also relatively easy to install due to the availability of DIY solutions and easily replicable components.
Market for proactive software and algorithm projected to grow with significant rate during the forecast period
Proactive type of software and algorithm not only transfers the energy consumption data to the end users but also gives a better sense of responsibility to the users as to what action should be taken on the information received. Proactive solutions are more beneficial as they not only send recommendation signals to end users but are also capable of making intelligent decisions and actions on behalf of the user. Proactive type of software and algorithm market segment is expected to grow at a faster rate as many of the home automation devices are being upgraded with the proactive type of software and algorithm.
Market in APAC estimated to grow at fastest rate during forecast period
The high growth in APAC can be attributed to the high economic growth and surge in real estate and home construction witnessed by countries in this region. The region houses a large proportion of the population in the world, where a growing number of homeowners are having sufficient disposable incomes owing to the improvements in economic conditions in this region. Home automation systems are being deployed to achieve energy savings, which directly results in decreased electricity bills. Countries such as China and India have aggressively started developing smart cities, which is expected to increase the penetration of home automation systems.
Major vendors in the home automation system market include Resideo (US), Legrand (France), Schneider Electric (France), Johnson Controls (Ireland), Siemens (Germany), Ingersoll Rand (US), ABB (Switzerland), Leviton Manufacturing Company (US), Control4 (US), Crestron Electronics (US). Apart from these, SmartThings (US) and Canary (US) are among a few emerging companies in the home automation system market.
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About the Authoredwardzmusso
Joined: February 8th, 2021
Articles Posted: 283
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