According to Futuresource Consulting the smart home market is set for "huge expansion," as global home automation package and smart devices should grow by 30-35% over the next 5 years to reach $6-7 billion by 2020.
Driving such growth are low-cost smart devices and mobile device apps, as well competition between hundreds of companies offering different value propositions. Further helping the industry are open smart home standards allowing both open and proprietary platforms and technologies to interact with each other.
The analyst also notes the DIY home automation (controllers and devices) will rise from small niche market to high growth opportunity, thanks to online distribution. Meanwhile wealthy households will continue demanding for customised, professionally installed systems and design services, despite a plethora of low-cost alternatives.
Another factor is energy efficiency-- customers demand value added features from appliances and residential systems, such as security, heating and lighting control. However customers from many customers will resist subscription-based services, and would prefer to have free home automation apps.
"The smart home market will see huge expansion over the next 5 years going from industry and geographical niches and quickly spreading to a much wider market," Futuresource says. "The key drivers are security and convenience lifestyle, remote monitoring and control."
Go Seizing the Smart Home Opportunity (Futuresource Consulting)