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New entrants into the home automation market are driving up awareness and adoption of home automation, says ABI Research. The move is transforming the availability of what has long been a niche product for those with either know-how or deep pockets. 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.

 

Players such as Verizon, ADT, Comcast will help drive the global market for home automation systems (HAS) to approximately 20 million installed units in 2017, up from 1.5 million shipped in 2011. The demand for hi-tech homes are on the increase as home owners become increasingly technology savvy with more financial resources. 

 

“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,” says ABI principal analyst Jonathan Collins. The result over the next five years will also change the shape of the home automation market. Mainstream suppliers such as Control4 have made headway popularising home automation and taking an increasing market share from DIY and luxury HAS offerings.


Managed services will 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.

-----ABI Research

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