90 Million Homes Worldwide Will Employ Home Automation Systems by 2017

Oyster Bay, New York - 16 May 2012

​New subscription-based home automation offerings are rapidly transforming the way consumers will monitor, secure, and control their homes. Long the preserve of more expensive, custom-installed technology, home automation is moving into the mainstream, with companies such as ADT, Comcast, Verizon, Lowe’s, and many others all adding home automation to their customer services. 

A number of factors are driving the new entrants into the market.  Connectivity is one key factor. Not only are there currently high home broadband penetration rates, as well as the potential for embedded cellular connections to connect systems, but also smartphone applications allow consumers to control and check their homes from wherever they are. As connectivity options make the home automation systems more useful, market changes are also making home automation more affordable. A traditional large up-front installation and equipment purchase is increasingly being replaced by monthly subscription offerings – often bundled alongside already existing services.

“The North American market has long been the dominant region for home automation systems and now it is leading the way with managed home automation subscription services. In the past two years, service providers, including telecoms, cable, security, and energy, have all launched additional home automation services for managing energy use or security monitoring to their suites of monthly billed services,” says Jonathan Collins, principal analyst, wireless healthcare and M2M.

Over the next five years the managed home automation market will grow installments at a CAGR of 60% between 2012 and 2017, outstripping the 31% growth across the total market comprising luxury, mainstream, and DIY home automation deployments. The evolution of the home automation market into the mainstream requires a raft of new partnerships. No company is able to provide all the parts, so telecom, cable, security, and utility providers are all looking to smart devices vendors, managed software providers, local installation specialists, and others to support the broad rollout of home automation services.

ABI Research’s “Home Automation, Security, and Monitoring” report examines the evolving marketplace for home automation systems and how the rise of managed subscriptions will impact existing luxury, DIY, and mainstream home automation markets.

It is part of ABI Research’s Home Automation Research Service.

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