May 17, 2012 by Rachel Cericola
Lately, we’ve seen a lot of well known companies pop up with home automation offerings. Comcast and Verizon are just two providers offering new home services to existing subscribers. What effect will mass-market options have on the industry? A very good one, says ABI Research.
According to the research firm’s “Home Automation, Security, and Monitoring” report, the managed home automation market will grow in installments over the next five years. ABI says to expect a compound annual growth rate of 60 percent between 2012 and 2017. That number will outstrip the 31 percent growth across the total market comprising luxury, mainstream, and DIY home automation deployments.
The end result should mean 90 million homes with home automation by 2017.
ABI says that a number of factors are contributing to the growth of the industry, with connectivity being a key factor. There are currently high home broadband penetration rates. Also, there are more control-related smartphone apps than ever before, allowing consumers an easy, affordable way to check in and manage the home when away from home. And finally, it’s just not as expensive as it used to be.
“As connectivity options make the home automation systems more useful, market changes are also making home automation more affordable,” ABI Research says in its report. “A traditional large up-front installation and equipment purchase is increasingly being replaced by monthly subscription offerings—often bundled alongside already existing services.”
ABI Research’s “Home Automation, Security, and Monitoring” report examines the home automation market and managed subscriptions, as well as its impact on existing luxury, DIY, and mainstream home automation markets.
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Over the past 15 years, Rachel Cericola has covered entertainment, web and technology trends. Check her out at www.rachelcericola.com.
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