The global smart home automation market was valued at USD 65,350 million in 2017 and is anticipated to grow at a CAGR of 13.6% during the forecast period.
Smart home automation provides seamless control of electrical and electronic devices in homes or remotely through wireless communication. It offers centralized control of functionalities such as lighting, air conditioning and heating, audio and video systems, security systems, kitchen appliances and other equipment used in home systems. It also sends alerts to users in case of security breaches or other events. Smart home automation systems offer advantages such as convenience, control, cost savings, and increased energy efficiency. Actuators are final controlling devices such as limit switches, relays, motors and other controlling mechanisms which control the home equipment.
The growing demand for remote monitoring of homes, and rising penetration of mobile and smart devices primarily drive the smart home automation market. The growing adoption of Internet of Things, and increasing concerns regarding safety and security has accelerated the adoption of smart home automation. The increasing costs associated with energy consumption coupled with rising awareness among consumers regarding efficient energy boosts the adoption of smart home automation. The introduction of government regulations regarding energy usage and emission of harmful gases, and wide scale adoption of IoT and remote connectivity are factors expected to provide growth opportunities during the forecast period. The growing technological advancements, and development of smart cities would drive the smart home automation market growth during the forecast period.
The global smart home automation market is segmented on the basis of component, technology, channel, application, and geography.
Based on the component, the smart home automation market is segmented into hardware, software, and services. In 2017, the hardware segment dominated the global market. The hardware segment accounted for the highest share owing to significant use of hardware equipment such as sensors, cameras, switches, relays, dimmers, storage devices, monitors, thermostats, valves, actuators, and pumps among others.
The technology segment is categorized into wired, and wireless. The wireless smart home automation accounted for the highest share in the global market owing to increasing demand for wireless networks, rising penetration of mobile devices, and growing adoption of Internet of Things.
The channel segment is categorized into luxury, mainstream, DIY, and managed. The applications in the global smart home automation market include lighting, entertainment, security and access control, HVAC, and others. The entertainment segment dominated the global smart home automation market in 2017.
Geographically, the smart home automation market is segmented across North America, Europe, Asia-Pacific, Latin America, and MEA. North America is further segmented into U.S., Canada, and Mexico. Europe is divided into Germany, UK, Italy, France, and Rest of Europe. Asia-Pacific is bifurcated into China, India, Japan, and Rest of Asia-Pacific. North America dominated the global market in 2017 owing to the established telecommunication industry and cloud infrastructure, and growing penetration of mobile devices. The rising need for automation, and growing concerns regarding security and energy savings support the market growth in this region.
The vendors in the market are launching new products to meet the growing customer needs. In addition, the leaders in the market are acquiring and collaborating with top companies in the market to enhance their offerings in the market and expand their customer base. The smart home automation market is highly competitive with the presence of many small and large vendors. The leading players in the smart home automation market include Johnson Controls, ABB Ltd., Ingersoll-Rand plc, Schneider Electric, Legrand SA, Crestron Electronics, Inc., Siemens AG, Honeywell International, Inc., Control4 Corporation, and Leviton Manufacturing Company, Inc. among others.