INSIGHTS
This study provides a full analysis of the European market for home automation systems, looking at market forecasts, distribution channel analysis, competitive dynamics and technology development. Drivers, restraints, challenges and a full analysis of the anticipated future opportunities are also presented. This market is very much in growth mode, but is also at an interesting junction with technology convergence and new participants making an exciting and uncertain landscape. Home automation is still a small market compared to the non-residential market for building management control systems. However the market for home automation has a great potential to realize a higher penetration level going forward.
Frost & Sullivan: Tablet Computers Rejuvenate European Home Automation Markets
Date: 2011/02/14
Source: Frost & Sullivan
R&D Focus Should be on Developing Software Applications Rather than Hardware User Interfaces
Currently, home automation systems are lifestyle products that are considered nonessential by many end users. Moreover, property developers are often cautious of investing in home automation systems, refraining from adding further cost, which might not be perceived by end users as an added value to the property. “Besides, other lifestyle products from ICT and home entertainment can be considerably cheaper, particularly since home automation lacks the economies of scale that is achieved in the ICT market,” said the analyst. “This puts pressure on home automation players to further drive down prices”
Home automation systems are not particularly inexpensive products. However, prices of home automation have been declining due to various factors including increasing competition among market participants and the pressure on manufacturers to reduce profit margins during the economic recession. Nevertheless, the most important factor that has impacted home automation system prices is the introduction of the tablet computer which offers the promise of substantially reducing the cost of the overall system, particularly in the luxury segment of the market. This makes home automation more affordable, boosting sales of the mid-range product segment.
“Apple's iPad is already having a huge impact on the luxury segment of the home automation market,” said the analyst. “Using a touch screen tablet computer as a user interface can save up to 50 percent of the home automation system price; home automation manufacturers should therefore shift their R&D focus from hardware user interfaces to software applications and embrace the new technology.”
Expert analysts thoroughly examine the following market sectors in this research：
● Luxury home automation
● Mass home automation
By Geographic Region
● Germany
● United Kingdom
● France
● Italy
● Spain
● Benelux (Belgium, Netherlands and the Luxemburg)
● Scandinavia (Denmark, Finland, Norway and Sweden)