Skip to main content

Home Automation as a Managed Service

There are two new approaches to home automation -- mainstream systems based on standardized technologies and packaged components, and home automation as a managed service offered through a broadband or wireless service provider.

Both have the potential for such broad market appeal that new research from ABI Research forecasts shipments to grow more than 50-fold between 2007 and 2013.

For 20 years, home automation systems were confined to two niche markets: luxury custom-designed and installed high-end systems that cover the whole home at a typical cost of $30,000-60,000 and up, and do-it-yourself X10 systems that tech-savvy customers typically bought online and were self-installed.

Now, however, according to ABI Research senior analyst Sam Lucero, "Home automation systems are becoming more mainstream and managed services are growing. ABI Research believes that they will appeal to a much wider public. Our forecasts indicate that the overall market will grow from a modest 237,000 systems shipped in 2007, to more than 4 million systems in 2013."

By far the lion's share of that growth will occur in the two new segments, mainstream and managed services. Mainstream systems are based on standard technologies and packaged components, as well as software that is integrated into other devices in the home, such as set-top boxes.

They feature interoperable devices available from multiple vendors, as opposed to integrated single-vendor systems. Such products are typically sold via high-touch retail and big box outlets. Home builders are also using them as an option.

Managed home automation will show the strongest growth of all, with an anticipated 1.3 million shipments in 2013.

Partnering with automation vendors such as 4Home, Portus, iControl, and uControl, broadband and telecom service providers are starting to offer such services, which provide functionality and remote monitoring via a computer or smartphone, as part of quintuple-play bundles.

Popular posts from this blog

Global Rise of Domestic Payment Ecosystems

Alternative Payment Methods (APMs) – comprising digital wallets, instant payments, and QR payment systems – are experiencing explosive growth that's reshaping the global financial services marketplace. According to the latest worldwide market study by ABI Research , the combined global transaction value for APMs is projected to reach $142 trillion by 2030. What's particularly fascinating is the underlying driver behind this trend: a growing desire for financial sovereignty, with nations developing domestic payment ecosystems rather than remaining dependent on international financial networks. Payment Ecosystem Market Development In 2024, approximately 45 percent of the global population used digital wallets – a remarkable adoption rate for a technology that barely existed a decade ago. China leads this transition, with 95 percent of its population using WeChat's payment functionality. WeChat exemplifies the "super app" phenomenon, where payment capabilities are in...