North America Generates 60 Percent of Global Smart Home Revenue, Says Report

Key market drivers for the smart home industry include low-cost smart devices and mobile apps, said a report from Futuresource. With hundreds of companies competing for share, with varying value propositions, “nobody will own the smart home market,” it said. Do-it-yourself (DIY) home automation, spurred by online distribution, will experience high growth from a niche market, said the report. Wealthy households will continue to opt for customized, professionally installed systems and services, even as low-priced DIY options proliferate. The smart home market will see huge expansion over the next five years moving from industry and geographical niches and "quickly spreading to a much wider market," said Simon Bryant, Futuresource analyst. North America has 60 percent of worldwide demand for smart home technology, driven by consumers’ interest in security, convenience, remote monitoring and control, said Bryant. The market for home automation packages and individual smart devices -- including sensors, actuators and cameras -- is forecast to grow 30-35 percent each of the next five years, he said. Futuresource projects smart home revenue will reach $6 billion-$7 billion by 2020. While energy efficiency is a benefit of the smart home, most impact will be realized through adding smart home features to appliances and security, lighting and HVAC systems, he said. The deployment of “hundreds of millions of connected devices (standalone and embedded) will create a new high volume market for semiconductor suppliers, although prices must be very low to make the market viable,” he said.