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Global home automation systems market forecast to reach more than 4 million units by 2013

Industry Sector

Information Technology


9 November 2012


Mike King

Type of News


The global home automation systems market has been forecast to increase at a compound annual growth rate (CAGR) of 35.5% through to 2015, having already boomed from 237,000 systems shipped in 2007, reach more than 4 million by next year.

Key factors driving growth within the home automation systems market include; vendors using standards-based wireless and power line technologies; companies in related markets utilising home control and monitoring capabilities in their products; residential security providers offering home automation as part of their service package; telecommunications and cable broadband companies using home automation as another revenue opportunity; and, utilities using home automation to help consumers reduce power consumption.

Home automation systems will no longer be confined to two niche markets: luxury custom-designed and installed high-end systems and 'do it yourself' systems. Home automation systems are becoming more mainstream and managed services are growing.

The controllers of the home automation system are getting brighter and more flamboyant every day in order to keep users interested and entertained. This trend is largely seen in the US and the European countries in order to elude the competition. Thus, several major vendors are opting to develop flamboyant controllers with innovative and attractive features in order to stay ahead of the local players in the market.

Despite the positive outlook, there are still some challenges that face the home automation market. A major challenge is simply lack of awareness on the part of mainstream consumers. Other issues for consumers were the expense, and a perceived lack of need for home automation.

The US market for home automation systems and devices was worth approximately $3.2 billion in 2010. It is expected to grow to almost $3.4 billion in 2011. In the longer term (i.e., 2011 to 2016), the forecast is for strong renewed growth in the home automation market, which is expected to exceed $5.5 billion in 2016, a CAGR of 10.5% between 2011 and 2016.

Lighting, home entertainment, and security systems accounted for nearly 58% of the US home automation market in 2010. It is estimated to be around $2.1 billion in the year and further to reach $3.8 billion by 2016 at a CAGR of 12.2 %.

For more information on the global home automation systems market, see the latest research: Global Home Automation Systems Market

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