Software as a Service (SaaS) Providers Dominate Home Automation Market with 1.3 Million Shipments in 2011

Following a spate of well-documented forays into the home automation market by several renowned service providers, open source technology from SaaS partners is expected to be present in the vast majority of home automation systems (HAS) brought to market in 2011. In fact, of the 1.8 million HAS shipped during the year, approximately 1.3 million will utilize this technology.

Leading the way is Alarm.com, which has signed partnerships with over 2,500 security dealers eager to deploy its platform in homes throughout North America. Its partnership with Vivint (formerly known as APX Alarm) in particular is reaping bountiful rewards. At current install rates, Vivint will have installed close to 150,000 home security systems during 2011 – all of which utilize Alarm.com technology.

Alarm.com is not the only SaaS provider to have positioned its home automation technology primarily as a home security solution. California-based iControl Networks has adopted a similar go-to-market strategy and boasts ADT, Comcast, Rogers Communications, Time Warner Cable, and Comporium Communications among an impressive list of deployment partners.

While many North American SaaS providers see home security as the preferred entry point into the home automation market, this is not the case in Europe. “European platform vendors such as There Corporation, AlertMe, and GreenWave Reality have tended to position their solutions more as home energy management systems first and foremost,” says senior analyst Craig Foster. “As such, the majority of initial roll-outs are occurring in conjunction with utilities, rather than telcos or cable operators, as is predominantly the case in North America.”

A second, related report reveals that in 2011, of an estimated 572,000 subscribers to telco and cable company-provided home automation services, 57% were based in the US and Canada. Foster says, “Due to a trend toward cellular-based home security systems, telcos are expected to account for the majority of subscribers through 2016 as they already have widespread wireless networks available.”

ABI Research’s reports, “Home Automation Software Platforms and SaaS Providers” and “Telco/Cableco Home Automation Services” address both the emergence of extensible software platforms and the entrance into the market of service providers.

Both are part of the firm’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.