A smart home is a residential extension and form of building automation. It involves automating security, air conditioning, heating, ventilation, lighting, and also home appliances like refrigerators, ovens, as well as washer and dryers that make use of WiFi to perform remote monitoring. Currently, many houses are built with extra controls and wiring which are required for operating advance home automation systems.
Increased need for consumer energy consumption, security, safety, and convenience are the major factors driving the smart home market. It is expected that the real estate industry will be spurring the smart home market’s demand. However, in a few areas, home automation products are at a saturation level and is one of the major restraints facing the smart home market. Other factors that are hindering the growth of the smart home market is lack of standardization and its high installation cost. In addition, the growth of the smart home market is being hampered by low awareness of home automation. However, high-end devices combined with technologically advanced features are going to escalate demand for the smart home market during the forecast period. New opportunities are also provided by cloud-based solutions to increase smart home market demand during the forecast period.
The smart home market has regional, software and product segments. The smart home market, by product, is segmented into HVAC control, home healthcare, lighting control, security access control smart kitchen and others. Among these products, the smart home market is dominated by light control due to reduced consumption of electricity in homes. Software that is used in the smart home is behavior and proactive.
Currently, the smart home market is dominated by North America. Europe is experiencing significant growth from increasing demand for certain home appliances like wireless devices, fitness bands, and others. In Europe, the major smart home market players are Legrand S.A., Tyco International Ltd., Ingersoll-Rand Plc, Schneider Electric S.A., ABB Ltd., and Siemens AG. It is expected that the Asia-Pacific region will be showing the highest growth during the forecast period based on reduced constraints of expensive installation costs for smart home appliances through continuously investing in R&D activities. Significant growth is being experienced in the Asia-Pacific region due to numerous residential efforts and projects to significantly strengthen building infrastructure. Latin America is expected to experience significant growth as well due to the economic development in these countries.
The smart home market can be classified based on software and product. The products that are part of the smart home market are access and security control, HVAC control, lighting control, home healthcare and smart kitchen. From those segment, the highest growth is expected to come from lighting control since it decreases electricity consumption. In terms of software, there are proactive and behavior software segments for the smart home market.
Some of the most well-known companies participating in the smart home market include Nest Labs Inc., Crestron Electronics Inc., Honeywell International Inc., United Technologies Corporation Ltd., Samsung Electronics, Acuity Brands Inc., ABB Ltd., Schneider Electronics SE, Johnson Controls Inc., Siemens AG, Ingersoll-Rand Plc, and Legrand.