Market research firm Transparency Market Research has published a forecast on global smart home market between 2017 and 2025. The North American market will keep leading the industry, while the Asia Pacific region will have higher growth than other markets, according to the report.
Market research firm Transparency Market Research has published a forecast on global smart home market between 2017 and 2025. The North American market will keep leading the industry, while the Asia Pacific region will have higher growth than other markets, according to the report.
Increasing Internet penetration rates, availability of high-speed Internet worldwide, and price drop in processors and sensors were pointed out as factors that will drive the growth of the global smart home market.
On the consumer side, the need for more efficient energy use will drive sales, in smart thermostats and smart energy solutions, among other product categories.
The report predicts that the global smart home market size will grow from US$30.02 billion in 2016 to US$97.61 billion in 2025, registering an annual growth rate of 14.6%.
“Despite these advantages, the continuing threat of security breaches on cloud is a key challenge for the market,” states the report. Manufacturers will enhance the security feature in the coming years, with the technology improvement and rich research and development in the industry, the report also predicts.
Regionally, North America will lead the market from its existing basis of 38.7% market share in 2016, the report say. Along with Europe, the second largest smart home market, the western world will create most opportunities for smart home manufacturers.
The main driver in the North American market is the rising demand for home health care, while the need for cutting energy consumption will increase sales, especially in countries like the UK, Germany, France and Italy.
The market of Asia Pacific is expected to grow at a higher rate than other regions between 2016 and 2025. Change in lifestyles, energy needs, mobility and comfort demand will be the main drivers, especially in countries like India, Japan and China.
As for smart product categories, the report predicts that HVAC will see more growth, driven by the demand to optimize energy efficiency. In 2016, smart HVAC systems had the highest 27.2% share among smart product sales.