The global home automation market size is expected to grow from USD 42.46 billion in 2021 to USD 69.41 billion by 2027 at a CAGR of 8.5%.
Key factors contributing to the growth of this market include the growth of home ownership over thousands of years around the world, the low cost of homeowners investing in home security systems and the increase in services provided by telecommunications companies, increased use of flexible home systems among older people, rapid urbanization. countries, and the growing importance of IoT technology in domestic automation.
The emergence of the global COVID-19 epidemic has affected the domestic automation system market. Many types of changing home products have been affected by this problem. Therefore, the market by 2020 is expected to have a slight decline compared to 2019. Market players have seen a decline in the inclusion of home automation. Since the installation and configuration of changing home systems require on-site staff, buyers are reluctant to install these systems to minimize external contact during this time. Thus, some players have recorded a decline in sales, while the home-grown DIY shift companies have been slightly affected. For example, Resideo (US), a leading provider of flexible home solutions, has announced aggregated revenue for Q2 2020, which has dropped by 17% compared to 2019 revenue at the same time. Acuity Brands (US), a manufacturer of building management systems, lighting, lighting controls, and surveillance applications, noted in their Q2 2020 conference call that the COVID-19 epidemic did not have a significant impact on revenue and residual sales through the private marketing network increased by 4% compared to the same period in 2019.
The availability of improved health care products and services enables people to live longer in an advanced way, especially in developed countries like the US and Japan. Longevity, coupled with declining birth rates, has resulted in a rapid increase in the number of older people. According to the United Nations, there were 703 million people aged 65 or older worldwide by 2019; this figure is expected to reach 1,549 million by 2050. The integration of home health care equipment with flexible home systems such as monitoring and diagnostic tools simplifies the process of caring for the elderly and sick. For example, emergency buttons can give alerts remotely to phones, and seating sensors can monitor the movement of degenerative patients.
AI voice technology, in particular, has been well-suited to baby boomers and the elderly. Voice AI assistants like Alexa from Amazon (US) and Google Home from Google (US) provide the elderly with ease. A major advantage of those AI voice assistants is that they provide hands-on control, thereby reducing the use of small, screened mobile screens for the elderly. Therefore, home automation devices that can be controlled using AI voice help are becoming more popular among the elderly.
Customers are increasingly recognizing the benefits of changing home systems; however, they are reluctant to invest as the ROI could take a year or more, even with simple devices such as lighting or temperature control. Expensive computer hardware and ownership costs have hampered the adoption of dynamic home systems, especially in the case of moderate home flexibility. A mid-range hub that can control most smart home devices tends to cost less for most home appliances changers. For example, a single-room EA-1 controller from Control4 (US) for a home theater costs about USD 1,500; an audio controller in 6-8 rooms can cost about USD 20,000 or more.
Many companies also offer their independent software through a dedicated interface that has a monthly subscription fee. This also increases the cost of ownership of changing home systems. Expensive software and consultation on the use and distribution of these systems increase the cost of installation. For example, in complex home automation systems, the editor may be required to set up the entire home automation system on behalf of the user. Therefore, the cost of ownership of home replacement systems can be high as they include repair costs, monitoring registration fees, replacement parts, and installation costs in addition to the cost of the default home appliance itself.
The major players operating in the global home automation market are Resideo (US), Legrand (France), Schneider Electric (France), Siemens (Germany), Ingersoll Rand (US), Johnson Controls (Ireland), Leviton Manufacturing Company (US), Home Engine Automation L.L.C (UAE), Smart Home Technology SZR (UAE), ALAYOUBI TECHNOLOGIES - Smart Home (UAE), UAE Smart Homes (UAE), ABB (Switzerland), Jadid Sanaiya (Saudi Arabia), HDL Saudi Arabia (Saudi Arabia), Control4 (US), Crestron Electronics (US), Acuity Brands (US), InorganicMind Automation Pvt. Ltd. (India), Zemote Home Automation (India), Skaleup Automation Solutions LLP (India), Remote Technologies Incorporated (US), Lutron (US), Elan (US), ADT (US), Develco Products (Denmark), AMX (US), Vantage Controls (US), Savant Systems (US), and SmartThings (US).