The Home Automation Market Set for exponential growth The Home Automation market which encompasses essentially automated control of domestic appliances has grown up over the last couple of years. Initially, this was driven by the launch of niche products from Nest (part of Google), Hive (from British Gas) and Hue (from Philips). This created interest in the so-called Internet of Things sector refers to the ability of appliances to interact with each other. However, the initial wave of products were single products the Nest products were – a smoke alarm and a thermostat, Hive was a heating controller and Hue are light bulbs. More recently, the market has evolved and there is now a range of products and Apps available which create an integrated Smart Home system, including Apple’s HomeKit, Google’s Nest and Samsung SmartThings. Growth in the Home Appliance market is expected to be substantial. As shown in Figure 8, Transparency Market Research predicts that the overall global market for home automation systems will grow at 26% p.a. between 2014-2020 to reach USD21.67 billion in 2020, up from approximately USD5.3 billion in 2014. Figure 8. Growth in Global Home Appliance Market 2013-2020e Source: Transparency Market Research According to BI Intelligence research, unit sales of connected home devices will grow at 67% p.a. between 2014-2019 and reach 1.8 billion units, as shown in Figure 9. This would be much faster than the expected rate of growth in smartphones or tablets. Figure 9. Growth in Global Connected Home Device Shipments 2012-2019e Source: BI Intelligence This growth could be kickstarted by Apple's recent launch of its HomeKit app which is compatible with a range of other manufacturers’ Smart Home products i.e. it is partially open-source.
The Home Automation Market Set for exponential growth The Home Automation market which encompasses essentially automated control of domestic appliances has grown up over the last couple of years. Initially, this was driven by the launch of niche products from Nest (part of Google), Hive (from British Gas) and Hue (from Philips). This created interest in the so-called Internet of Things sector refers to the ability of appliances to interact with each other. However, the initial wave of products were single products – the Nest products were a smoke alarm and a thermostat, Hive was a heating controller and Hue are light bulbs. More recently, the market has evolved and there is now a range of products and Apps available which create an integrated Smart Home system, including Apple’s HomeKit, Google’s Nest and Samsung SmartThings. Growth in the Home Appliance market is expected to be substantial. As shown in Figure 8, Transparency Market Research predicts that the overall global market for home automation systems will grow at 26% p.a. between 2014-2020 to reach USD21.67 billion in 2020, up from approximately USD5.3 billion in 2014. Figure 8. Growth in Global Home Appliance Market 2013-2020e Source: Transparency Market Research According to BI Intelligence research, unit sales of connected home devices will grow at 67% p.a. between 2014-2019 and reach 1.8 billion units, as shown in Figure 9. This would be much faster than the expected rate of growth in smartphones or tablets. Figure 9. Growth in Global Connected Home Device Shipments 2012-2019e Source: BI Intelligence This growth could be kickstarted by Apple's recent launch of its HomeKit app which is compatible with a range of other manufacturers’ Smart Home products i.e. it is partially open-source.
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