Home Automation System Market Overview and Future Trends

Posted by edwardzmusso on May 11th, 2022

The global home automation system market is projected to grow from USD 40.8billion in 2020to USD 63.2 billion by 2025; it is expected to grow at a CAGR of 9.1% from 2020to 2025. The key factors are fueling the growth of this market include growing home ownership among millennials worldwide,  lower insurance costs for homeowners investing in home security systems and increasing services offered by telecommunication companies, increasing use of home automation systems among the elderly population, rapid urbanization in developing countries, and rising significance of IoT technology in home automation.

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On-premises management systems consist of a centralized control home automation system that controls everything in the home through a single hub. It allows the user to control lights, thermostat, sprinklers, phone, washer, and dryer, among others, from a single source. This type of management system is most popular with upscale private residences and is a widely used system. The system is also very popular with security systems. Cloud-based management systems use smartphone apps leveraging the home network to communicate with the cloud. In the US, the largest home automation system market, the adoption of smartphones increased significantly, especially among the millennials and the elderly.

The behavioral type of software and algorithm performs the main function of analyzing energy-related data and forwarding it to the end users. This category is restricted to transmitting and receiving the data and does not perform any intelligent actions, unlike the proactive type. The behavioral type of software and algorithm provides direct feedback to the end users, thereby providing basic information regarding the real-time energy data as well as the historical data of energy usage. Many of the home automation devices have behavioral type of software and algorithm. As this type of software and algorithm is the most widespread due to its initial adoption and low cost, this segment is expected to account for a larger share of the home automation system market in 2020.

Lighting controls are essential components of energy-efficient lighting systems and combine sources of electric light with daylight to create a pleasant ambience while saving energy and costs. Thus, it helps meet the demand for energy saving and environmental sustainability. Lighting control also provides flexibility with respect to the lighting operation, which improves ambience, interior decoration, and productivity. Due to its simple installation and programming, lighting control is a popular home automation system for first-time buyers. The emergence of LED lighting solutions that can dim light and change colors has also made lighting controls more attractive to buyers. Hence, the market for lighting control systems is expected to grow at the highest CAGR during the forecast period.

In the APAC, government initiatives like the net-zero homes in developed countries such as Japan and South Korea are driving the market for home automation systems. The market in Australia is mainly driven by consumer interest, while rapid housing developments in China are expected to increase the penetration of home automation systems in the country.

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edwardzmusso
Joined: February 8th, 2021
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