The report, put together by market research firm Technavio, states that smart home applications such as home automation, access control, home monitoring, lighting control, fire or water leak detection and temperature monitoring are stimulating demand in the smart home market. [2.5m European households to have smart home controller]
In a release, Rakesh Panda, one of Technavio’s lead analysts for machine to machine research, added: “Smart home security is the most demanding application from the consumer.
“Most of the residential users are rapidly adopting cloud-based residential security solutions that provide a self-monitoring and remote service solution. It provides a user-friendly interface to homeowners, helping them to arm, disarm, and check the security status of their house from a remote location.”
[quote] Technavio’s report focuses on the smart home M2M market in Western Europe, where it is found that almost 40% of the overall energy generated is consumed by buildings. In addition, energy management and climate control systems was valued at $1.33 billion in 2015. In relation to the electricity use in buildings, the power is predominantly used for heating, cooling, air conditioning, and ventilation.
Another driver accelerating growth for energy management in Western Europe is wireless Internet penetration and the growing awareness of cloud services among consumers. The market research company states that a wireless technology, such as ZigBee and Wi-Fi, is another significant driver.
The company notes that nearly 70% of the households in Western Europe use Wi-Fi technology to manage energy. However, consumers are adopting ZigBee at a faster rate, and this technology is expected to surpass Wi-Fi by the end of the forecast period. Energy management systems are widely adopted to manage electricity inside a building. [Demand for smart home sensing systems on the rise]
Smart home security
Security represents the second largest market segment for the smart home. In 2015, the smart home M2M market in Western Europe by security and access control systems was valued at $1.11 billion. The report explains that demand for security is driven by the increased adoption of indoor and outdoor security devices by residential users.
It adds: “The demand for security cameras, intruder alarms, and smoke detectors is high among residential users. Several companies such as BT are offering connected home M2M security hardware and services at reasonable prices. Declining prices of devices are also responsible for driving market growth.”
Lighting control systems also occupies a large portion of the market, valued at $950 million last year.
Technavio explains that the decrease in the cost of devices, replacement of upfront installation cost by monthly subscription plans, improved broadband ecosystem, favorable government initiatives, and rising disposable income are also positively contributing to the growth of the market.
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