Smart Home market will be worth US$34 billion in 2020

Latest ABI survey says low power mesh networking wireless technologies such as Z-Wave and ZigBee are boosting the market, while ULE (ultra low energy) is also set to contribute to smart home automation growth

Smart Home market will be worth US$34 billion in 2020

The smart home market is increasing rapidly - in particular in the US and in Europe, according to the latest findings of ABI Research, which predicts global revenues from smart home automation systems will be as high as US$34 million in 2020. Between 2015 and 2020, the CAGR is estimated to be 21%.

Whilst North America will contribute almost half of the global revenues, Europe and Asia-Pacific are expected to enjoy booming markets too. In North America and Western Europe, devices such as security cameras with embedded motion sensors are currently particularly popular - not only for home security purposes, but also for indoor activity tracking. In China, due to increasing concern about air quality, environmental sensors are gaining popularity.

For its latest survey, ABI Research had examined the market for home energy management, connected appliances, home security management, home healthcare, entertainment, and lighting control.

“Smart home automation system revenue was primarily driven by mass consumer adoption of smart home security systems but the market is also witnessing strong revenue growth from the adoption of smart plugs and smoke and air quality monitors,” said senior analyst Adarsh Krishnan.

In low-cost battery-operated devices including contact sensors and motion sensors, proprietary wireless technologies dominated. “Higher quality of service assurance and longer battery life are primary drivers for the continued adoption of proprietary technologies in smart home security,” said principal analyst Jonathan Collins.

Low power mesh networking wireless technologies also continued increased adoption in the smart home market, such as Z-Wave and ZigBee. Another wireless standard that has the potential to boost the smart home market even further, is ULE (Ultra Low Energy). In addition to data and control signals, ULE also allows video and voice transmission with a data throughput of up to 1 Mbit/s.

Thanks to the launch of a certification programme by the non-profit organisation ULE Alliance earlier this year, users can be assured that their ULE devices from different manufacturers such as smoke and motion detectors, smart plugs, security devices, and heating controls can be combined within one network. The standard is based on secure and stable DECT frequencies.

According to industry experts, increased security and higher comfort are the main drivers for the smart home market in Europe, whilst the lack of standardisation and high costs of the smart homes systems are the biggest restraints.

 

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