The market for custom-designed and installed home automation systems has seen a fundamental shift, from the majority of systems being installed in new build homes to systems now being installed predominantly as retrofits and renovations. New builds now represent around 40% of all mid- to high-end home automation installations – down from approximately 90% before the recession.
Historically, retrofits and renovations were relatively uncommon, due in part to the unreliability of wireless protocols at the time, but more so because of the disruption and cost involved in fitting wiring in the architecture of an already existing home. Conveniently, the sudden and dramatic collapse of residential construction in several key markets coincided with the timely emergence of more reliable, no new wires technologies, such as ZigBee and Z-Wave.
“The development of mostly standards-based technologies and resultant increase in retrofit jobs has somewhat offset the decline in new build business,” says Craig Foster, senior analyst, home automation systems. That said, many vendors still eagerly await an upturn in the housing market and according to the latest set of statistics from the National Association of Home Builders (NAHB), this upturn could be just around the corner. The NAHB’s seasonally-adjusted forecast predicts construction of 658,000 new homes during 2011 – 12% more than in 2010 and the highest year-on-year rise (if realized) since 2005.
The entrance into the market of service providers like home security companies will also benefit vendors operating in the custom-install space. A lack of awareness amongst the general populace has always been an inhibitor to greater adoption of home automation systems, and service providers, with vast marketing budgets, are bringing about much greater exposure of this technology. According to a second, related report, total global subscribers of home automation services provided for by home security companies will increase from around 513,000 in 2010, to over 10 million by 2016.
ABI Research’s two new reports, “Luxury Home Automation Systems” and “Security Company Home Automation Systems” look at the custom-install and growing convergence of the home security and home automation markets, respectively.
They are part of ABI Research’s Home Automation Systems Research Service.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
ABI Research提供开创性的研究和战略指导，帮助客户了解日新月异的技术。 自1990年以来，我们已与全球数百个领先的技术品牌，尖端公司，具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
Asia: +65 6950.5670