Global home automation market to reach 20mn installed units by 2017

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, according to a new report from ABI Research.

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, the research firm adds.

Players such as Verizon, ADT, Comcast, and many others are predicted to help drive the global market for home automation systems (HAS) to close to 20mn installed units in 2017, up from just over 1.5mn 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,” said Jonathan Collins, principal analyst at ABI Research.

The HAS market is also expected to change shape over the next five years, due to suppliers such as Control4 popularising home automation and taking an increasing market share from DIY and luxury HAS offerings.

Managed services are expected to 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.

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