Skip to main content

Consumers are Unaware of Home Automation Needs

Revenue from shipments of home automation systems will exceed $11.8 billion in 2015, according to the latest market study by ABI Research. That number includes all four categories of home automation -- Luxury, Mainstream, DIY and Managed.

However, the luxury segment is forecast to deliver the greatest revenue.

In addition to quantitative market measurement, ABI Research also sampled U.S. consumer attitudes with a September 2009 survey. Nearly half of the 1001 respondents did not know what the term "home automation" actually means. A further 43 percent understood the concept but had no system installed.

According to ABI practice director Sam Lucero, "Our survey results show that a major challenge is simply lack of awareness on the part of mainstream consumers. Other issues for consumers were the expense, and a perceived lack of need for home automation."

Regardless, Lucero believes that the home automation market is approaching an inflection point beyond which its growth rate will increase significantly, for the following reasons.

- Vendors are taking advantage of standards-based wireless and powerline technologies to drive down costs and expand the addressable market.

- Companies in related home systems markets are increasingly targeting home control and monitoring functionality in their devices.

- Home security service providers view home monitoring and managed home automation services as a means of accelerating growth.

- Telco and cable broadband service providers see managed home automation services as a way to increase revenue.

- Utilities can use home automation technologies to help homeowners reduce power usage.

How do these drivers map with buyer intentions? An average of three quarters of the 39 percent of survey respondents who intend buy a home automation system within three years rated three functions as the ones they would expect to use most -- energy management, home control, and security.

Popular posts from this blog

How Data and Analytics Drive Business Growth

Senior executives in the world’s largest and most complex organizations will develop the insights required to achieve lasting Digital Transformation. Gartner has identified a model for digital business growth that binds together data, analytics, technology, and forward-looking transformation capabilities. The Gartner Research Board said that data and analytics (D&A) leaders are uniquely positioned to drive this strategic organizational change that will make their companies behave like 'digital native' leaders.  "The most advanced and successful D&A leaders are driving new opportunities to use digital capabilities – often data and analytics products – to capture value. Those opportunities should directly connect to the business priorities," said Mario Faria, vice president at Gartner . Digital Business Market Development At the same time, some leaders are using digital and D&A to create whole new business models. These leaders – which Gartner named the CxO

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc