Telcos, Utilities, Cable Companies, and Security Providers Look to $12 Billion Home Automation Systems Market for Growth

31 May 2012

​New entrants into the home automation market are driving up awareness and adoption of home automation, transforming the availability of what has long been a niche product for those with either know-how or deep pockets.

Telcos, utilities, cable companies, and security players are all beginning to offer managed home automation services focused on security, energy management, or just improved home control. Players such as Verizon, ADT, Comcast, and many others will help drive the global market for home automation systems (HAS) to close to 20 million installed units in 2017, up from just over 1.5 million shipped in 2011.

“A revolution is taking place in the appeal, deliver, support, and pricing of home automation systems as the technology moves from being a high ticket investment to becoming another newly essential monthly service,” says principal analyst Jonathan Collins.

The result over the next five years will also change the shape of the HAS market. Mainstream suppliers such as Control4 have made headway popularizing home automation and taking an increasing market share from DIY and luxury HAS offerings. Managed services will represent 67% of HAS shipments by 2017, but mainstream suppliers will see their share of the market grow from 16% to 26% of the total market between 2011 and 2017. While the DIY and luxury segments will lose share of the market, the higher consumer profile for home automation systems will still help these markets grow their shipments by 36% and 9% CAGR, respectively, from 2011 to 2017.

ABI Research’s report, “Home Automation Systems Market Data, Global,” 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 Systems Research Service

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