Frost & Sullivan: Tablet Computers Rejuvenate European Home Automation Markets

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)

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