Need for Energy Efficiency Driving Global Smart Homes Market

Need for Energy Efficiency Driving Global Smart Homes Market

There is no foreseeable limitation to the need for energy as a result of escalating population across the world and rapid urbanization, although natural resources are limited. As a result, the demand for energy efficient processes are gaining popularity, which is reflecting positively on the market for smart homes. As per a recent commerce and business study by Transparency Market Research (TMR), the demand in the global smart homes market will increment at an impressive CAGR of 14.6% during the forecast period of 2017 to 2025. The report has estimated that the opportunities in the global smart homes market will reach a valuation of US$97.61 bn by 2025, substantially up from its evaluated valuation of merely US$30.02 bn in 2016.

Which factors are poised to define the demand in the smart homes market?

The global smart homes market is driven by a number of factors, such as emergence and vast possibilities with the Internet of Things (IoT), growing importance of home monitoring by the owners from an away location, rising need for every saving and low carbon emission-oriented solutions, rapid proliferation of smartphones and other smart gadgets, reduced cost of equipment that help build and maintain these smart homes, escalated concerns for safety and security as well as convenience, and influx of a large number of vendors in this market that had led to the enhancement of products. The implementation of Commercial Buildings Initiatives (CBI) by the U.S. government can be one example of government support to the market for smart homes, as the country is aspiring to make all commercial buildings completely energy independent by 2025. In addition to that, incorporation of lighting controllers with in-built data connectivity technology and advent of power-line communication technology are expected to open new opportunities for the companies connected to the value chain of the global smart homes market.

On the other hand, the reliance of the market on the convenience factor for the consumers rather than being a necessity, extremely high cost of the equipment that will ensure the shift from existing set-up, and issues related to the breach in security and privacy are some of the factors obstructing the global smart homes market.

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Which market segments are promising superior growth?
Application-wise, the TMR report segments the global smart homes market into security and access control, heating, ventilation, and air conditioning (HVAC) control, and entertainment control. In 2016, The HVAC control segment served 27.2% of the overall demand, and is expected to remain the most prominent segment throughout the forecast period. The growing need for devices that are energy efficient and persistent need optimize the use of energy are some of the factors fuelling the demand of HVAC control systems in the global smart home market.

What is the nature of competition among the leading companies of this market?
The global smart homes market is in development stage, but the sheer enormity of the possibilities is luring a number of players who want a share of the pie. Consequently, the existing moderate competitive landscape is expected to grow intense in the near future, with the key players concentrating on research and development activities to enhancing their product portfolio and differentiate themselves from their competitors. TMR report identifies Honeywell International, Inc., Schneider Electric SE, Siemens AG, ABB Ltd, and Johnson Controls, Inc. as some of the key companies currently operating in the global smart homes market, whereas some of the other prominent vendors are: United Technologies Corporation, Samsung Electronics Co., Ltd., Acuity Brands, Inc., General Electric Company, Ingersoll-Rand PLC, Legrand S.A., Lutron Electronics Co. Inc., and Leviton Manufacturing Company, Inc.