“Integration of lighting products with IoT based renewable sources of energy and cloud-based technology is expected to reduce the energy consumption. This in response would also generate demand for home automation product and services,” said a lead analyst at Fortune Business insights.
The global home automation market will gain from rapid adoption of smart home technology. As per the report, in 2017 the global home automation market was worth US$ 45.8 Bn. The global market is anticipated to expand at a CAGR of 12.1% and reach US$ 114 Bn by the end of 2025. In terms of application, the lighting segment held the highest market share in 2017. The segment accounted for 25% of the global home automation market. The segment is expected to witness impressive growth during the forecast period 2018-2025. Growth witnessed in this segment is attributable to the increasing need for reducing the energy consumption. This is likely to propel the demand in the global home automation market.
Increasing Adoption of Wireless Technology to Fuel Demand in Global Market
Increasing internet penetration and rising willingness for luxurious lifestyle are major factors anticipated to drive the global home automation market during the forecast period 2018-2025. Moreover, increasing purchasing power and adoption of wireless technology is expected to increase the demand in the global home automation market.
Integration of the Internet of Things in home automation products, besides the Artificial Intelligence is also projected to boost the global home automation market.
However, high cost associated with home automation products and services and high data prices are a few factors that may restrain the global home automation market during the forecast period.
North America to Retain Dominance Through Forecast Period
North America emerged dominant in the global home automation market in 2017. The market in North America was valued at US5 16.4 Bn in 2017. It is expected to remain the leading region through the forecast period. The growth witnessed is attributable to the increasing number of mergers and partnerships taking place in the region. Additionally, high adoption of Internet of Thing in nations such as the U.S. and Canada is likely to increase the growth rate in the global home automation market. North America is also expected to expand at a relatively high CAGR in response to the increasing number of smart homes in nations such as Canada and U.S.
Honeywell Emerges Dominant in Global Market with its Advanced Control Strategies
Honeywell International Inc., emerged dominant in the global home automation market in 2017. The growth witnessed is due to advanced control strategies adopted by the organization. Honeywell is also known for investing and acquiring start-ups to offers its products in various nations. Besides this, other companies operating in the global home automation market are Crestron Electronics Inc., AMX LLC (Harman), Control4 Corporation, Johnson Controls Inc., Siemens AG, Savant Systems LLC., and ABB Ltd.