Smart home automation system revenues to reach $34B in 2020, report finds – SecurityInfoWatch
According to a new report from ABI Research, global revenues from smart home automation systems are projected to grow at a compound annual growth rate (CAGR) of 21 percent over the next five years, with revenues reaching $34 billion in 2020. North America will account for the majority of revenues in 2020, contributing close to 46 percent, followed by Europe and Asia-Pacific.
“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,” ABI Research Senior Analyst Adarsh Krishnan said in a statement.
In addition, ABI said that regional differences are also reflected in device adoption. In 2014, North America and Western Europe witnessed increased adoption of security cameras, especially those with embedded motion sensors which were used not only for home security but also indoor activity tracking. In China, due to increasing concern about air quality, environmental sensors are gaining popularity.
With regard to wireless protocol adoption, ABI said that proprietary wireless technologies from United Technologies, Honeywell, and Bosch Security—operating in 433 Mhz and 900 Mhz spectrum bands—continue to dominate in low-cost battery-operated devices including contact sensors and motion sensors.
“Higher quality of service assurance and longer battery life are primary drivers for the continued adoption of proprietary technologies in smart home security,” added ABI Research Principal Analyst Jonathan Collins.
Low power mesh networking wireless technologies Z-Wave and ZigBee also continued increased adoption in the smart home market. Sigma Designs’ Z-Wave is embedded in over 1,000 interoperable devices while ZigBee’s latest 3.0 protocol will help drive its growth as it addresses many of the earlier interoperability issues, ABI said.
Click here for more information about the findings of ABI Research’s Smart Home Market Research.