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Smart Homes and Home Automation - 7th Edition

  • ID: 4852443
  • Report
  • November 2019
  • Region: Global
  • 297 Pages
  • Berg Insight AB
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144 million Homes in Europe and North America will be Smart by 2023


  • ABB
  • Chamberlain Group
  • Fibar Group (Nice)
  • KNX
  • OpenTherm
  • Thread
  • MORE

How should the mobile industry address the vast business opportunity in connected smart homes? The analyst estimates that revenues from shipments of home automation systems in Europe and North America will grow at a compound annual growth rate of 19.8 percent from US$ 36.7 billion in 2018 to US$ 90.6 billion in 2023. Get a 360 degree perspective on the rapid evolution of the worldwide home automation market in this comprehensive 300-page strategy report.

Smart Homes and Home Automation is the seventh consecutive report analysing the latest developments on the connected home markets in Europe and  North America.

This report in the IoT Research Series provides you with 300 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

Highlights from the seventh edition of the report:

  • Insights from 30 executive interviews with market-leading companies.
  • 360-degree overview of the smart homes & home automation ecosystem.
  • Summary of industry trends in key vertical market segments.
  • Statistical data on the adoption of smart home systems in Europe and North America.
  • New market forecasts lasting until 2023.
  • Detailed reviews of the latest initiatives launched by industry players.
  • Updated profiles of the key vendors on this market.

This report answers the following questions:

  • Which are the main verticals within smart homes and home automation?
  • What are the main drivers behind the growth in Europe and North America?
  • What are the challenges and roadblocks towards widespread adoption?
  • What are the business models and channels-to-market for smart home solutions?
  • Which are the leading whole-home system vendors in Europe and North America?
  • How are product OEMs and whole-home solution vendors positioning themselves?
  • What home connectivity technologies are smart home system vendors betting on?
  • What is the potential market size for cellular IoT in home automation?
  • How will the smart home market evolve in the next five years?

According to this research report, the number of smart homes in Europe and North America reached 64 million in 2018. The most advanced smart home market is North America, having an installed base of 33.8 million smart homes at the end of the year. This represents a penetration of 24 percent. Between 2017 and 2018, the market grew by 38.6 percent year-on-year. The strong market growth is expected to continue in the next five years.

By 2023, the analyst estimates that more than 60.3 million homes in North America will be smart, meaning 41 percent of all homes in the region. The European market is still behind North American, in terms of market penetration. There were a total of 30.5 million smart homes in Europe at the end of 2018. The installed base in the region is forecasted to grow to 83.2 million homes at the end of 2023, representing a market penetration of 35 percent. The most popular products on the smart home market include smart thermostats, smart light bulbs, smart security cameras, smart air conditioners, smart door locks, smart plugs, and smart speakers. The market for smart thermostats is led by companies such as Ecobee, Nest and Resideo. The analyst estimates that the installed base of smart thermostats amounted to 18.9 million units in North America and 6.6 million units in Europe at the end of 2018. Signify is the clear market leader in the market for smart light bulbs and other connected lighting products. Additional vendors in the segment include Ledvance, LIFX, Sengled, Merkury Innovations, and IKEA. The installed base of connected light points at the end of 2018 amounted to 25.2 million units in North America and 22.4 million units in Europe. Smart speakers with integrated voice assistants have quickly become a popular smart home product. Amazon and Google hold a near-duopoly in the smart speaker market with an estimated combined market share of around 90 percent in North America and Europe.

At the end of 2018, the installed base of voice-controlled smart speakers amounted to around 100 million units in North America and over 21 million units in Europe. The market for whole-home systems is served by traditional home automation specialists, home security providers, telecom operators, and DIY solution providers. “On the North American market, interactive home security systems have emerged as the most common type of smart home systems”, said Martin Backman, IoT Analyst. This type of system represented 41 percent of the 13.3 million whole-home systems in the region at the end of 2018. The largest home security providers include ADT, Vivint, and Comcast. “In Europe, traditional home automation systems and DIY solutions are more common as whole-home systems”, continued Mr. Backman. eQ-3, Deutsche Telekom, Verisure, Centrica Hive, and Somfy are the largest vendors of whole-home systems in the region. The installed base of whole-home systems in Europe amounted to 6.8 million systems at the end of 2018.

Who should buy this report?

Smart Homes and Home Automation is the foremost source of information about the emerging market for connected home applications. Whether you are a product vendor, service provider, telecom operator, investor, consultant, application developer or government agency, you will gain valuable insights from this in-depth research.

Note: Product cover images may vary from those shown
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  • ABB
  • Chamberlain Group
  • Fibar Group (Nice)
  • KNX
  • OpenTherm
  • Thread
  • MORE

List of Figures
Executive summary

1  Smart homes, connected homes and home automation
1.1  Introduction
1.2  Types of home automation
1.2.1  Security and access control systems
1.2.2  Energy management and climate control systems
1.2.3  Audio-visual and entertainment systems
1.2.4  Lighting and window control systems
1.2.5  Healthcare and assisted living
1.2.6  Home appliances
1.2.7  Service robotics
1.2.8  Multifunction and whole-home automation systems
1.3  Home automation market segments
1.3.1  Mainstream houses and multi-family dwellings
1.3.2  The custom (luxury) segment
1.3.3  New homes versus existing homes
1.4  Channels to market
1.4.1  Professional installation
1.4.2  Retail
1.4.3  Service providers

2  Networks and communications technologies
2.1  Overview
2.1.1  Different approaches to establishing interoperability
2.1.2  Technology choices of product OEMs
2.1.3  Technology choices of whole-home solution vendors
2.2  Smart home networking technologies
2.2.1  ANT
2.2.2  Bluetooth
2.2.3  DECT ULE
2.2.4  EnOcean
2.2.5  HomePlug
2.2.6  HomeGrid
2.2.7  Insteon
2.2.8  io-homecontrol
2.2.9  KNX
2.2.10  LPWA
2.2.11  OpenTherm
2.2.12  Thread
2.2.13  Wi-Fi
2.2.14  X10
2.2.15  Zigbee
2.2.16  Z-Wave
2.3  Smart home middleware and ecosystems
2.3.1  Amazon Alexa
2.3.2  Google Home and Google Assistant
2.3.3  Android Things and Weave
2.3.4  Apple HomeKit and Siri
2.3.5  IFTTT
2.3.6  Open Connectivity Foundation
2.4  Smart home platforms
2.4.1  Amdocs
2.4.2  AWS
2.4.3  Ayla Networks
2.4.4  ThroughTek
2.4.5  Tuya
2.4.6  Waylay

3  Technology providers and OEMs
3.1  Market overview
3.1.1  Compatibility with whole-home systems
3.1.2  Point solutions are gaining traction among consumers
3.1.3  Smart home strategies for product OEMs
3.1.4  New entrants challenge incumbents with connected products
3.1.5  Popularity of smart speakers boost smart home product sales
3.2  Security and access control system vendors
3.2.1  Assa Abloy
3.2.2  August Home (Assa Abloy)
3.2.3  Canary
3.2.4  Chamberlain Group
3.2.5  Groupe HBF (Otio)
3.2.6  iSmartAlarm
3.2.7  Kwikset
3.2.8  Minut
3.2.9  Schlage
3.2.10  Simplisafe
3.2.11  Wyze Labs
3.3  Energy management and climate control system vendors
3.3.1  Climote
3.3.2  Danfoss
3.3.3  Diehl Connectivity Solutions
3.3.4  Ecobee
3.3.5  Eve Systems
3.3.6  Geo
3.3.7  Johnson Controls
3.3.8  Netatmo (Legrand)
3.3.9  Radio Thermostat Company of America
3.3.10  Schneider Electric
3.3.11  Tado
3.4  Audio-visual and entertainment system vendors
3.4.1  Harman (Samsung Electronics)
3.4.2  Kaleidescape
3.4.3  Logitech
3.4.4  Naim Audio
3.4.5  Sonos
3.4.6  Sony
3.4.7  Sound United
3.5  Lighting and window control system vendors
3.5.1  CentraLite (Ezlo Innovation)
3.5.2  iDevices (Hubbell)
3.5.3  IKEA
3.5.4  Leviton
3.5.5  LIFX (Buddy Technologies)
3.5.6  Lutron Electronics
3.5.7  Ledvance (MLS)
3.5.8  Signify
3.5.9  Velux
3.5.10  View
3.6  Healthcare and assisted living
3.6.1  Climax Technology
3.6.2  Doro
3.6.3  Hidea Solutions
3.6.4  Just Checking
3.6.5  Qorvo (GreenPeak Technologies)
3.6.6  Sensio
3.6.7  Sleep Number
3.6.8  Tunstall Healthcare Group
3.6.9  Verklizan
3.7  Home appliances
3.7.1  BSH (Bosch)
3.7.2  Electrolux
3.7.3  GE Appliances (Haier)
3.7.4  Haier
3.7.5  LG Electronics
3.7.6  Whirlpool
3.8  Service Robotics
3.8.1  Double Robotics
3.8.2  Dyson
3.8.3  Husqvarna
3.8.4  iRobot
3.8.5  Neato Robotics
3.8.6  Robomow
3.8.7  Softbank Robotics
3.8.8  Zucchetti Centro Sistemi (Ambrogio Robot)

4  Service providers and whole-home system vendors
4.1  Market overview
4.1.1  The European market
4.1.2  The North American market
4.1.3  Attach rates per application area in whole-home systems
4.2  Market segments and go-to-market strategies
4.2.1  Traditional home automation
4.2.2  DIY systems
4.2.3  Professionally monitored security
4.3  Whole-home system OEMs
4.3.1  ABB
4.3.2  Alarm.com
4.3.3  Belkin
4.3.4  Bosch
4.3.5  Control4 (SnapAV)
4.3.6  Crestron Electronics
4.3.7  D-Link
4.3.8  Essence Group
4.3.9  eQ-3
4.3.10  Fibar Group (Nice)
4.3.11  Gigaset
4.3.12  Grenton
4.3.13  Ingersoll Rand
4.3.14  Legrand
4.3.15  Loxone Electronics
4.3.16  MiOS (Ezlo Innovation)
4.3.17  Nest Labs
4.3.18  Nice Group
4.3.19  OBLO Living
4.3.20  Proove (Telldus)
4.3.21  Resideo Technologies
4.3.22  Safe4 Security Group
4.3.23  Samsung Electronics
4.3.24  Savant Systems
4.3.25  Somfy
4.3.26  TP-Link
4.3.27  United Technologies Corporation
4.3.28  Viva Labs
4.3.29  Wink
4.3.30  Xiaomi
4.4  Smart home service providers
4.4.1  ADT
4.4.2  Altice France
4.4.3  AT&T
4.4.4  Brinks Home Security (Monitronics)
4.4.5  Centrica Hive
4.4.6  Comcast
4.4.7  Cox Communications
4.4.8  Deutsche Telekom (QIVICON)
4.4.9  Innogy (E.ON)
4.4.10  Verisure
4.4.11  Vivint Smart Home
4.4.12  Vodafone

5  Market forecasts and conclusions
5.1  Market trends and analysis
5.1.1  Greater consumer awareness benefits all players
5.1.2  Lower price points opens the doors to the mass market
5.1.3  Cloud-based systems and the integrated hub opportunity
5.1.4  Open versus closed smart home ecosystems
5.1.5  Lack of interoperability causes problems for users
5.1.6  Security and integrity issues when the home is being connected
5.1.7  Smart home devices can give discounts on home insurance premiums
5.1.8  Professional security leads the North American smart home market
5.1.9  Cellular M2M in the smart home market
5.1.10  Mergers and acquisitions in the smart home industry
5.2  Popular smart home product categories
5.2.1  Smart speakers
5.2.2  Smart thermostats
5.2.3  Smart lighting
5.2.4  Smart plugs
5.3  Europe
5.3.1  Revenues
5.3.2  Shipments
5.3.3  Installed base
5.4  North America
5.4.1  Revenues
5.4.2  Shipments
5.4.3  Installed base



List of Figures
Figure 1.1: Example of an alarm system
Figure 1.2: Examples of security and access control systems
Figure 1.3: Examples of energy management and climate control devices
Figure 1.4: Sonos multi-room audio system
Figure 1.5: Philips Hue lighting system
Figure 1.6: Care@Home activity monitoring solution
Figure 1.7: Samsung Family Hub Smart Fridge
Figure 1.8: Examples of service robots
Figure 1.9: Types of markets for home automation
Figure 1.10: Households, dwelling types and homeownership by country (NA 2018)
Figure 1.11: Households, dwelling types and homeownership by country (EU28+2 2018)
Figure 1.12: Definition of luxury versus ultra-luxury home
Figure 1.13: Existing homes and housing starts (North America 2015–2018)
Figure 1.14: Existing homes and housing starts (EU28+2 2015–2017)
Figure 1.15: Channels to market
Figure 2.1: Illustration of interoperability at different levels
Figure 2.2: Examples of technology choices by product OEMs
Figure 2.3: Examples of technology choices by whole-home solution vendors
Figure 2.4: Dotdot over Thread
Figure 2.5: Examples of IFTTT applets
Figure 3.1: Installed base per application area (EU28+2 and NA 2018)
Figure 3.2: Smart home strategies for product OEMs
Figure 3.3: Examples of incumbents and new entrants by application area
Figure 3.4: The Yale Assure Lever lock and August Home mobile app
Figure 3.5: Second generation of Point
Figure 3.6: Ecobee thermostat and light switch
Figure 3.7: Eve Aqua Smart Water Controller
Figure 3.8: GLAS smart thermostat
Figure 3.9: Harman Citation series
Figure 3.10: Polk Command Bar with Amazon Alexa built-in
Figure 3.11: IKEA Trådfri smart kit
Figure 3.12: SmartCare by Doro
Figure 3.13: Bosch Home Connect
Figure 3.14: GE Kitchen Hub
Figure 3.15: Dyson 360 Eye Robot Vacuum Cleaner
Figure 4.1: Penetration of whole-home automation systems (EU28+2 and NA 2018)
Figure 4.2: Competitive landscape – Service providers and whole-home system OEMs
Figure 4.3: Top whole-home system vendors (EU28+2 2018)
Figure 4.4: Top whole-home system vendors (NA 2018)
Figure 4.5: Attach rates in whole-home systems (EU28+2 and NA 2018)
Figure 4.6: Market segments
Figure 4.7: Installed base of whole-home systems (North America 2018)
Figure 4.8: monitored small alarm systems by country (EU28+2 2018)
Figure 4.9: eQ-3 Homematic IP system
Figure 4.10: Examples of Fibaro products
Figure 4.11: Gigaset Smart Home system
Figure 4.12: Nest thermostat and alarm system
Figure 4.13: TellStick ZNet Lite V2 Gateway
Figure 4.14: Honeywell Home ProSeries security and smart home platform
Figure 4.15: TP-Link’s Deco M9 Plus Smart Home Mesh Wi-Fi System
Figure 4.16: ADT Control Package
Figure 4.17: AT&T Digital Life packages
Figure 5.1: Smart home penetration and installed base (EU28+2 and NA 2017–2023)
Figure 5.2: Smart homes with professional security (North America 2017–2023)
Figure 5.3: Cellular connections in the smart home market (2017–2023)
Figure 5.4: Mergers and acquisitions in the smart home industry (World 2014–2017)
Figure 5.5: Mergers and acquisitions in the smart home industry (World 2017–2019)
Figure 5.6: Installed base of voice-controlled smart speakers (EU and NA 2017–2023)
Figure 5.7: Smart speakers by Amazon, Google, Apple and Harman Kardon
Figure 5.8: Homes with smart thermostats (EU28+2 and NA 2017–2023)
Figure 5.9: Installed base of smart light points (EU28+2 and NA 2017–2023)
Figure 5.10: Installed base of smart plugs (EU28+2 and NA 2017–2023)
Figure 5.11: Market overview (EU28+2 2017–2023)
Figure 5.12: Smart home revenues (EU28+2 2017–2023)
Figure 5.13: Market share by whole-home system segment (EU28+2 2018–2023)
Figure 5.14: Shipments per application area (EU28+2 2017–2023)
Figure 5.15: Installed base per application area (EU28+2 2017–2023)
Figure 5.16: Market overview (North America 2017–2023)
Figure 5.17: Smart home revenues (North America 2017–2023)
Figure 5.18: Market share by whole-home system segment (North America 2018–2023)
Figure 5.19: Shipments per application area (North America 2017–2023)
Figure 5.20: Installed base per application area (North America 2017–2023)

Note: Product cover images may vary from those shown
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  • ABB
  • ADT
  • ANT
  • AT&T
  • AWS
  • Alarm.com
  • Altice France
  • Amazon
  • Amdocs
  • Apple
  • Assa Abloy
  • August Home (Assa Abloy)
  • Ayla Networks
  • BSH (Bosch)
  • Belkin
  • Bluetooth
  • Bosch
  • Brinks Home Security (Monitronics)
  • Canary
  • CentraLite (Ezlo Innovation)
  • Centrica Hive
  • Chamberlain Group
  • Climax Technology
  • Climote
  • Comcast
  • Control4 (SnapAV)
  • Cox Communications
  • Crestron Electronics
  • D-Link
  • Danfoss
  • Deutsche Telekom (QIVICON)
  • Diehl Connectivity Solutions
  • Doro
  • Double Robotics
  • Dyson
  • eQ-3
  • Ecobee
  • Electrolux
  • EnOcean
  • Essence Group
  • Eve Systems
  • Fibar Group (Nice)
  • GE Appliances (Haier)
  • Geo
  • Gigaset
  • Google
  • Grenton
  • Groupe HBF (Otio)
  • Haier
  • Harman (Samsung Electronics)
  • Hidea Solutions
  • HomeGrid
  • HomePlug
  • Husqvarna
  • iDevices (Hubbell)
  • io-homecontrolInnogy (E.ON)
  • Insteon
  • iSmartAlarmIngersoll Rand
  • iRobotIKEA
  • Johnson Controls
  • Just Checking
  • KNX
  • Kaleidescape
  • Kwikset
  • LG Electronics
  • LIFX (Buddy Technologies)
  • LPWA
  • Ledvance (MLS)
  • Legrand
  • Leviton
  • Logitech
  • Loxone Electronics
  • Lutron Electronics
  • MiOS (Ezlo Innovation)
  • Minut
  • Naim Audio
  • Neato Robotics
  • Nest Labs
  • Netatmo (Legrand)
  • Nice Group
  • OBLO Living
  • OpenTherm
  • Proove (Telldus)
  • Qorvo (GreenPeak Technologies)
  • Radio Thermostat Company of America
  • Resideo Technologies
  • Robomow
  • Safe4 Security Group
  • Samsung Electronics
  • Savant Systems
  • Schlage
  • Schneider Electric
  • Sensio
  • Signify
  • Simplisafe
  • Sleep Number
  • Softbank Robotics
  • Somfy
  • Sonos
  • Sony
  • Sound United
  • TP-Link
  • Tado
  • Thread
  • ThroughTek
  • Tunstall Healthcare Group
  • Tuya
  • United Technologies Corporation
  • Velux
  • Verisure
  • Verklizan
  • View
  • Viva Labs
  • Vivint Smart Home
  • Vodafone
  • Waylay
  • Whirlpool
  • Wi-Fi
  • Wink
  • Wyze Labs
  • X10
  • Xiaomi
  • Z-Wave
  • Zigbee
  • Zucchetti Centro Sistemi (Ambrogio Robot)
Note: Product cover images may vary from those shown
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The Internet of Things is very diverse. There are hundreds of different use cases, each with different dynamics. The starting point is to segment the market.

The analyst begins with a number of sectors: Automotive, Cities, Health, Industry, Home, Industrial, Energy, Retail and Consumer Electronics. Each of these sectors breaks down into a number of applications. In total across all sectors, the analyst examines around 150 separate applications. It is at this application level that they generate their IoT forecast. The analyst builds reliable data bottom-up. They take into consideration the current adoption rate, regulations, demographics, vertical-specific statistics, value chain structure, etc.

The rigorous data collection methods are based on first-hand and secondary sources. The analyst conducts many hundreds of executive interviews on a yearly basis with companies from all parts of the IoT value chain.  They talk to on a regular basis all major mobile operator groups and regulators as well as the chipset, module, and terminal vendors. They also interview many companies in each of the vertical markets.