According to Frost & Sullivan’s latest research into the home automation economy, the sector will grow by double digits over the next five years, reaching a CAGR of 15.8% by 2022.
The reason why the home automation systems (HAS) market is set to grow at such a rapid pace is because business models are clearer than they used to be, giving consumers a real reason to buy such devices and big data gives companies the platform on which to build their products and services, meaning they can tailor solutions better to customer demand.
Frost & Sullivan also explained adoption of new technologies is also a big factor in the rise in popularity of such devices. This is especially the case for high-end devices and the luxury goods market, where automation is an essential part of the customer experience.
“In the next three to five years, voice-over-technology, gesture, and facial recognition will become the key transformational technologies in the home automation market,” said Frost & Sullivan home & building technology Research Analyst Harini Shankar. “Players should adopt deep and machine learning algorithms as these technologies will become critical to future home automation systems.”
Overall, Frost & Sullivan has predicted the home automation market will reach a whopping $806.1 million (£606 million) by 2022. It expects some very clear trends to appear too, including disruptive end-to-end, connectivity, and hub models, partnerships between OEMs and and service/platform providers and new innovations from the biggest automation players such as Samsung, Net, Hive and Philips Hue.
“Innovation scouting, partnering, collaboration, and appropriate acquisitions will be essential to mitigate high initial investment and replacement costs, and lack of skilled labour,” added Shankar. “Players should seek to deploy easy-to-understand, customer-centric business models to increase HAS market penetration.”