In the last three years, numerous home automation (HA) related products have been introduced into the market. Existing market players have upgraded their product lines, while new entrants have introduced new offerings. Everyone is increasingly focusing on smart technologies.
In the last three years, numerous home automation (HA) related products have been introduced into the market. Existing market players have upgraded their product lines, while new entrants have introduced new offerings. Everyone is increasingly focusing on smart technologies. Manufacturers of individual HA functions, such as security, climate control, window treatment systems and access control, have launched new smart products. New analysis from Frost & Sullivan, "European Home Automation Market," finds that the market earned revenues of $301 million in 2012 and is expected to reach $470.4 million in 2017.
While the HA market is seeing a shift in technology and increased demand for novel products, the supply chain is also responding to such developments. "While HA installation has been of interest almost exclusively to professional HA specialists, an increasing number of manufacturers are trying to simplify technology, and spread installation and programming know-how to more participants in the supply chain," noted Hammam Ahmed, Senior Industry Analyst of Environment and Building Technologies, Frost & Sullivan. "They have intensified their focus on training traditional electrical contractors, and are exploring other routes to market in order to reach a wider customer base. This will have a positive impact on the supply chain in the future."
Since the introduction of tablet computers in 2010, the market has changed drastically. For example, user interface (UI) prices have fallen considerably. This means one of the key differentiating factors between the luxury and mass HA systems has almost disappeared. In the past, intuitive UIs were almost exclusive to luxury systems. "Currently, even the most simple HA system includes an intuitive UI through an application on a tablet computer, at a fraction of the price of a luxury propitiatory UI," remarked Ahmed. "This has helped HA in appealing to a wider customer base and providing the market with a compelling offering at a relatively low price."
As mass market participants drastically improve their systems, the gap between the luxury and mass market segments is gradually narrowing. This is also expected to create a midrange segment where both segments are likely to rally. Revenue growth will be fuelled by the increasing demand for such midrange systems. "Luxury segment participants are expected to continue to reduce prices to cater to a wider customer base, and mass market companies are likely to continue to provide more system functionalities at the existing price," Ahmed said.
"European Home Automation Market" is part of the Building Management Technologies Growth Partnership Service program; other related research services include World LED Lighting Markets, Energy Management Opportunities: HEMS and BEMS Markets, European Lighting Controls Markets, and North American Building Automation System Markets.