19/10/2017 – News / Smart Homes / Internet of Things / Frost & Sullivan / Europe

Home automation systems see double-digit growth in Europe

Unambiguous business models, Internet of Things (IoT) innovations, cloud services, Big Data platforms, the rise of connected devices, and a growing dependency on technology are just some of the drivers propelling double-digit growth in the European home automation market, reveals new research from Frost & Sullivan.


The new study – entitled European Home Automation Systems Market, Forecast to 2022 – finds that the total European home automation market is estimated to reach over US$806 million by 2022, recording a compound annual growth rate (CAGR) of 15.8 per cent. The study describes how IoT has influenced technologies such as near-field communication, wearable technology, smartphones, and the penetration of Wi-Fi and Bluetooth. Revenue forecasts by country and region, technology trends, and a comprehensive competitive analysis of key players are also provided.


A connected, personalised eco-system


Indeed, products and services associated with home automation and smart and connected homes have changed the consumer’s perception of technological innovation. They are being remodelled into a connected and personalised ecosystem of services. Home automation systems (HAS) and solutions have created a home environment whereby seamless experiences and high comfort levels can be achieved, especially in the ‘luxury’ end of the market. Connectivity and response from establishing user-interactive features are becoming high-impact trends, accelerating growth and attracting new entrants with continuous innovation.


“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,” says 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.”


Disruptive end-to-end connectivity


Further trends and developments driving growth and innovation in the European Home Automation Systems Market include the emergence of disruptive end-to-end connectivity, and hub models in the next three to five years. The report says we should also expect to see more partnerships or compatible agreements among original equipment manufacturers (OEMs) and service/platform providers, such as Lutron and Apple Homekit, to deliver an efficient and manageable HAS Product-as-a-Service (PaaS) solution.


Growing convergence 


The researchers predict there will be a rise in merger and acquisition (M&A) activity due to key companies trying to strengthen their market positions. Examples include Samsung’s acquisition of SmartThings, and AMX Harman and Bosch’s acquisition of ProSyst. They also forecast a growing convergence of the home automation market with the connected homes market – a trend that has already opened doors for new entrants such as Vivint, Amazon Echo, and Nest. 


The Frost & Sullivan research suggests we should expect to see the development of new business models due to technology innovation and increased connectivity; and finally, the expansion of brands from the connected home market – such as Samsung, Net, hive, Philips Hue, and Qivicon – into more sophisticated home hubs and converging with the HAS market.


“Innovation scouting, partnering, collaboration, and appropriate acquisitions will be essential to mitigate high initial investment and replacement costs, and lack of skilled labour,” noted Mr Shankar. “Players should seek to deploy easy-to-understand, customer-centric business models to increase HAS market penetration.”


To access more information on this analysis, visit: https://goo.gl/8tZLW9

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