Home automation, once limited to high-end homes, is quickly gaining traction among buyers, with global revenues rising at a high rate. Consumers are looking at gaining greater control over the miscellaneous items in their home, thereby, providing a much-needed impetus to the global home automation market.
Developed Countries Take Charge in Home Automation
The pace of home automation is especially pronounced in developed regions of the US and Western Europe; however, high-income individuals in emerging nations of Asia Pacific are Latin America are also turning to home automation. In the next five years or so, home automation is expected to become a standard offering among real estate developers in the developed world, partly fuelled by the massive incorporation of internet of things (IoT).
Systems that are currently witnessing high adoption rates include access and security controls, lighting, air conditioning, and entertainment systems. Automation is enabling homeowners to monitor and change the systems in their home, while they are on-the-go.
A key factor supporting the robust adoption of home automation systems is the proliferation of apps on iOS and Android. Earlier, automation was seen through the prism of complexity, however, the ease of use offered by home automation systems has helped in bringing this technology to the mainstream.
Innovation in wireless technology and LED lighting has also provided an impetus to the adoption of automation systems. Making audio-visual technology compatible with other automation systems, has helped in driving demand, as entertainment systems are highly sought-after among consumers looking for home automation solutions.
Lowering of Prices Has Spurred Adoption Rates
Price is one of the key factors that determines the receptiveness of a new technology. As we mentioned earlier, home automation systems were usually associated with the super-rich and celebrities in the past, however, as manufacturing technology has evolved, the prices of components used in home automation systems has come down sharply. This has transformed the global market for home automation systems, bringing this technology within the reach of the middle class demographic.
Today, the general level of awareness on climate control and energy efficiency is relatively higher than say, five years ago. Many consumers are looking to contribute to energy efficiency and do their bit for the environment. As home automation results into energy saving, more homeowners are looking at the ROI and ethical benefits of getting equipped with home automation.
The global economy has shown steady recovery in the last couple of years or so. Although the housing market isn’t as strong as it was in the pre-recession era, it has shown signs of recovery lately. Buoyed by positive signals, the housing sector has picked up in the US, Canada, and UK. Although this still is a period of recovery, it has had a positive impact on the prospects of home automation. As more homes are expected to be sold in the next five years or so, automation will gain traction.
The key players in the home automation market include HomeSeer, AMX, SmartThings, ADT Pulse, Frontpoint, Vera, Control4 Corporation, Crestron, Savant, Siemens AG, Johnson Controls, and Honeywell.