According to research conducted by analyst firm Berg Insight, North America is witnessing the strongest growth in the smart home market worldwide.Berg Insight notes that North America is the "world’s most advanced smart home market" and the region had an installed base of 21.8m smart homes at the end
of the year, a 47% year-on-year growth.
In a press statement, the firm noted that, "the strong market growth is expected to last for years to come, driving the number of smart homes in North America
to 73.0 million by 2021, which corresponds to 55% of all households."
[quote] The release adds that the European market is still a few years behind North America in terms of penetration and market maturity. At the end of 2016, there were 8.5 million smart homes in Europe and the market is forecasted to grow at a compound annual growth rate (CAGR) of 57% in the next five years to reach 80.6 million smart homes by 2021, which corresponds to 36% of all European households.
The most successful products on the smart home market include smart thermostats, security systems, smart light bulbs, network cameras and multi-room audio systems from vendors such as IKEA, Philips Lighting, Honeywell, Belkin, Nest, Ecobee, Somfy, Sonos, Canary, Netatmo and D-Link.
In a separate report, the firm states that the number of North American and European homes with a smart thermostat grew by 67% to 10.1 million in 2016.
“Smart thermostats is a particularly attractive opportunity in the smart home market, as these systems are of great interest for consumers, energy companies and HVAC service providers” says Anders Frick, Senior Analyst, Berg Insight. [Connected home: How do smart meters fit in?]
In reference to the firm's research on the smart home market, Frick said: “2017 is anticipated to be a good year for smart home technology as entry-level smart home systems have become affordable for the mass market, at the same time as the reliability and features have improved significantly."
New innovative user interfaces are also important as a catalyst for market growth. “Several ICT industry giants are now betting on voice driven user interfaces to
make it easier to control smart home solutions," Frick added.
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