the global smart homes market is forecast to grow at compound annual growth rate (CAGR) of 20.3 percent to reach $47.61 billion by 2020, according to a new study by Grand View Research.
According to www.ACHRNews.com, emphasis on energy conservation and reduced carbon emissions are expected to be the key driving forces for the market over the forecast period.
Favorable regulatory initiatives for implementing smart homes owing to their energy efficiency characteristics are also expected to positively impact the global market over the next six years.
Smart home applications encompass HVAC, energy management, security, lighting, entertainment, and others.
The introduction of smart grids, increased personal income in developing economies, assistance of power line communication, and growth of the consumer electronics industry are factors expected to favorably impact market growth.
The need for standardization, skilled labor, and high initial cost due to the incorporation of advanced technologies such as IP and Bluetooth may pose a challenge to industry growth.
Additional key findings of the report are:
• The energy management segment is expected to witness the fastest growth due to growing awareness regarding energy efficiency coupled with the support of regulatory bodies for development of a smart grid and installation of smart electricity, water, and gas meters.
• North America is expected to remain the market leader over the forecast period, and accounted for 41.3 percent of the global market revenue in 2013. The market in Europe is expected to grow at a CAGR of 21.3 percent from 2014 to 2020, owing to growing adoption of smart home systems.
• Key industry participants include ABB Ltd., Siemens AG, Crestron Electronics Inc., Honeywell, Emerson Electric Co., Schneider Electric S.A., Legrand S.A., Lutron Electronics Inc., Ingersoll-Rand PLC, Tyco International Ltd., AMX, and Control4 Corp.