WELLESLEY, Mass, April 17, 2018 (GLOBE NEWSWIRE) -- An increase in internet connectivity and the economic growth of emerging Asia-Pacific countries are among key drivers of the global market for smart home technologies. In a new report Smart Home Technologies: Global Markets to 2022, BCC Research estimates this market to reach $38.0 billion and $55.0 billion by 2017 and 2022, respectively, indicating a compound annual growth rate (CAGR) of 7.7%.
The global smart home market is growing substantially as industry participants strive to meet the fundamental demand for a universal solution—one that integrates complex platforms into a single home technology system. Price is another key challenge that must be resolved to enter the mainstream market with the mass adoption of products. The market would then be driven by increased penetration and product adoption compared to the current scenario, which is currently characterized by high margins with custom or luxury solutions being key revenue contributors.
Research Highlights
- Safety and security among application segments held the largest revenue share at $8.1 billion in 2016.
- Emerging nations in the Asia-Pacific region are experiencing substantial economic growth, which should drive growth.
- The entertainment application is expected to have the highest CAGR (9.2%) through 2022.
“The global smart home market—until now considered an elite market—has been growing in popularity across widespread social segments, facilitated by the development of wireless, open and standard technologies,” said Sinha G. Gaurav, BCC Research analyst and author of the report. “These technologies have helped reduce the cost of wiring and labor, thus lowering overall prices. Also, many players have induced price competitiveness, forcing them to develop mainstream solutions.”
Smartphone Applications Drive Market
Smartphone apps have the potential to meet the challenges posed by a lack of a universal solution. They also help reduce cost by avoiding the need for a separate remote control or user interface. A deep market penetration of smartphones and the services of cellular network providers is expected to aid in the adoption of smartphone-enabled smart home services. The ability to control activities at home from a remote location through one’s phone is used as a key selling point by smart home solution vendors to attract consumers.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.