The global smart home market is predicted to grow at a CAGR of 15.01% for the forecast period of 2017-2025. The market revenue is expected to grow from $52590 million in 2016 to $185150 million by 2025. The growing elderly populations is a major driver for the growth of the smart homes markets globally. Factors like various initiatives undertaken by the government and the intensifying adoption tariffs are also propelling the market growth. Also, the rising awareness of home and personal electronic gadgets, novel innovative technologies and growing disposable income amongst the masses are providing the market with excellent growth opportunities.
The global smart home market can be segmented on the basis of the products and on the basis of the services offered. By product, the Security Market held the highest market share in 2016. The market for Home Energy Management is currently in its nascent stage. However, it is expected to grow at the fastest CAGR of 21.50% during the forecast period. The other products include HVAC, lighting controllers, entertainment, home health etc. HVAC (heating, ventilation and air conditioning) control system is predicted to grow at a CAGR of 14.41% and is fast growing. The lighting controller market also shows promise since it generated a revenue of $7055 million in 2016. On the basis of the services offered, the market can be sub-divided into installation & repair and customization. The Installation & Repair market held the largest market share in 2016 and is anticipated to grow at a faster CAGR of 17.88% owing to the advent of new technologies. The Customization Market which generated a revenue of $1951 million in 2016 is also fast expanding.
The Europe Smart home market is expected to grow at a CAGR of 14.96% during the forecast period. U.K. and Germany are the major countries in this region that contributed to the European market for generating a revenue of $16040 million in 2016. An increasing disposable income amongst the middle-class population is expected to drive the Asia-Pacific market, which is anticipated to grow at a CAGR of 19.27% during the forecast period. However, it is the North America smart home market that is expected to hold the highest share by 2025, with a CAGR growth of 10.90%. This phenomenal growth for the region can be attributed to the presence of major market players like Honeywell and Control 4 in the North American countries like the U.S and Canada.
The Vodafone Company has an established presence in the connected devices sector and offers M2M smart services and solutions that include managed connectivity and professional services. Another company, Honeywell International Inc, provides various residential building automation solutions through its Automation and Control Solutions segment, which includes HAVC control systems, lighting and utilities monitoring and controls, security and access control systems, and integrated security systems. Additionally, the company also provides with various automation products including DCS and MES. The other prominent players in the market are Blue Line Innovations Inc, ABB, Ltd., Centrica Connected Home Limited, Control4 Corporation, Century Technologies Corp, Crestron Electronics Inc, Johnson Controls, Inc., EE Limited, Emerson Electric Co., LG Electronics, Inc., Ltd., Schneider Electric Se, Siemens Ag, Samsung Electronics Co., Solatube International Inc, and United Technologies Corporation.