Northbrook, IL -- (SBWIRE) -- 07/14/2021 -- According to MarketsandMarkets, the home automation system market is projected to grow from USD 40.8 billion in 2020 to USD 63.2 billion by 2025; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 9.1% from 2020 to 2025. Various types of home automation system are being deployed worldwide, from luxury home automation systems to DIY home automation systems. They not only provide convenience to homeowners, but also assist with home security and energy savings. The objective of the report is to define, describe, and forecast the home automation system market based on management, product, software and algorithm, and region.
Impact of COVID-19 on current home automation system market size and forecast
The emergence of the COVID-19 pandemic, a deadly respiratory disease that originated in China, is now become a worldwide issue and has also affected the home automation market. Most home automation system manufacturers have been affected by this crisis, which is expected to be a medium-term impact. For instance, Resideo (US), a leading provider of home automation solutions, announced a consolidated revenue for Q2 2020, which declined by 17% as compared to the revenue in 2019 during the same period.
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On-premises management system is estimated to hold the larger share of the home automation system market in 2020
On-premises management systems consist of a central hub that controls all the home automation systems in the home. It allows the user to control lights, thermostat, HVAC, audio and video streaming devices, and other home appliances from a single source. This management system is also widely used with home automation security systems. On-premises management was the only system available for home automation for many years. They are ideal for connecting to a large number of smart devices from a single source. New homes generally have preinstalled on-premises management systems.
Entertainment and other controls products are estimated to hold the largest share of the home automation system market in 2020
The major controls used to control and regulate the entertainment systems in home automation are audio, volume, and multimedia room controls. Other controls include smart meters, smart plugs, smart hubs, smart locks, smart window blinds, and smoke detectors. Automated home audio and volume controllers are used to control the audio and video played in the house or to customize what is playing in each room individually. There are numerous commercial systems that can be purchased in the market, or the user can also get a system custom-built or homemade. The emergence of voice-controlled speakers such as Google Home and Amazon Echo has greatly expanded the market for entertainment controls. Other controls include smart meters, smoke detectors, smart plugs, smart window blinds, smart locks, and smart hubs which are commonly found in many homes as they are standalone devices.
Proactive software and algorithm in the home automation system market is projected to grow at the highest CAGR from 2020 to 2025
Proactive type of software and algorithm not only transfers the energy consumption data to the end users but also gives a better sense of responsibility to the users as to what action should be taken on the information received. Proactive solutions are more beneficial as they not only send recommendation signals to end users but are also capable of making intelligent decisions and actions on behalf of the user. Proactive type of software and algorithm market segment is expected to grow at a faster rate as many of the home automation devices are being upgraded with the proactive type of software and algorithm.
The home automation system market in APAC is projected to grow at the highest CAGR from 2020 to 2025.
The high growth in APAC can be attributed to the high economic growth and surge in real estate and home construction witnessed by countries in this region. The region houses a large proportion of the population in the world, where a growing number of homeowners are having sufficient disposable incomes owing to the improvements in economic conditions in this region. Home automation systems are being deployed to achieve energy savings, which directly results in decreased electricity bills. Countries such as China and India have aggressively started developing smart cities, which is expected to increase the penetration of home automation systems.
Key Market Players
Major vendors in the home automation system market include Resideo (US), Legrand (France), Schneider Electric (France), Johnson Controls (Ireland), Siemens (Germany), Ingersoll Rand (US), ABB (Switzerland), Leviton Manufacturing Company (US), Control4 (US), Crestron Electronics (US). Apart from these, SmartThings (US) and Canary (US) are among a few emerging companies in the home autoation system market.