Innovation scouting, partnering, collaboration, and
appropriate acquisitions are essential for growth, finds Frost
& Sullivan's Home & Building Team
LONDON, Oct. 16, 2017
/PRNewswire/ -- Unambiguous business models, frequent
innovations on Internet of Things, cloud services, Big Data
platforms, rise of connected devices, and dependency on technology
are some of the drivers propelling double-digit growth in
the European home automation market.
Products and services associated with home automation and smart
and connected homes have changed the consumer's perception of
technological innovation. They are being remodelled into a
connected and personalised ecosystem of services. Home
automation systems (HAS) and solutions have created a home
environment whereby seamless experiences and high comfort levels
can be achieved, especially in the 'luxury' end of the market.
Connectivity and response from establishing user-interactive
features are becoming high-impact trends, accelerating growth and
attracting new entrants with continuous innovation.
Frost & Sullivan's research, European Home Automation
Systems Market, Forecast to 2022, finds that the total European
home automation market is estimated to reach $806.1 million by 2022, recording a compound
annual growth rate (CAGR) of 15.8%. The study describes how the
Internet of Things (IoT) has influenced technologies such as
near-field communication, wearable technology, smartphones, and the
penetration of Wi-Fi and Bluetooth. Revenue forecasts by country
and region, technology trends, and a comprehensive competitive
analysis of key players are also provided.
To access more information on this analysis, please
visit: https://goo.gl/8tZLW9
"In the next three to five years, voice-over-technology,
gesture, and facial recognition will become the key
transformational technologies in the home automation market," said
Frost & Sullivan home & building technology Research
Analyst Harini Shankar. "Players
should adopt deep and machine learning algorithms as these
technologies will become critical to future home automation
systems."
Further trends and developments driving growth and
innovation in the European Home Automation Systems Market
include:
- Emergence of disruptive end-to-end, connectivity, and hub
models in the next three to five years;
- Partnerships or compatible agreements among original equipment
manufacturers (OEMs) and service/platform providers, such as Lutron
and Apple Homekit, to deliver an efficient and manageable HAS
Product-as-a-Service (PaaS) solution;
- Rise of merger and acquisition (M&A) activities due to key
companies trying to strengthen their market positions. Examples
include Samsung's acquisition of SmartThings, and AMX Harman and
Bosch's acquisition of ProSyst;
- Convergence of home automation market with connected homes
market, thereby opening doors for new entrants such as Vivint,
Amazon Echo, and Nest;
- Development of new business models due to technology innovation
and increased connectivity; and
- Expansion of brands from the connected home market, such as
Samsung, Net, hive, Philips Hue, and Qivicon, into more
sophisticated home hubs and converging with the HAS market.
"Innovation scouting, partnering, collaboration, and
appropriate acquisitions will be essential to mitigate high
initial investment and replacement costs, and lack of skilled
labour," noted Shankar. "Players should seek to deploy
easy-to-understand, customer-centric business models to increase
HAS market penetration."
European Home Automation Systems Market, Forecast to 2022
is part of Frost & Sullivan's Home & Building Growth
Partnership Service program. The study segments the home automation
market based on its scope as hardware and software. Hardware
includes home measuring and monitoring devices, home controller
units/master hubs and plug-and-play devices, whereas software
includes applications to control and automate home functions. The
regional scope of the study covers the United Kingdom, Germany, France, Italy, Spain,
Poland, Scandinavia (Denmark, Norway, Finland, and Sweden), Benelux, and Rest of Europe (Switzerland, Ireland, Norway, Portugal, and Austria).
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Contact:
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Corporate Communications – Europe
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