A new Frost & Sullivan report sets the scene for double-digital growth in the European home automation market.
The European home automation market is set to reachÃ‚Â $806.1 millionÃ‚Â by 2022,Ã‚Â according to a new report by analyst company Frost and Sullivan.
The report, European Home Automation Systems Market, Forecast to 2022, states that the market will see double-digit growth, recording a compound annual growth rate (CAGR) of 15.8 per cent.
Among the trends and developmentsÃ‚Â driving growth and innovation are the emergence of disruptive end-to-end connectivity and hub models in the next three to five years. Frost & Sullivan analysts also anticipate a convergence of the home automation and connected homes markets, opening doors for recent entrants such as Vivint, Amazon Echo, and Nest.
The report claims that partnerships or agreements between original equipment manufacturers (OEMs) and service/platform providers, such as Lutron and Apple Homekit, will deliver efficient and manageable home automation Product-as-a-Service (PaaS) solutions.
They also anticipate a rise in merger and acquisition (M&A) activities, as key companies trying to strengthen their market positions. Examples include Samsungâ€™s acquisition of SmartThings, and AMX Harman and Boschâ€™s acquisition of ProSyst.
There will also be an expansion of brands from the connected home market, such as Samsung, Net, hive, Philips Hue, and Qivicon, as vendors start to offer more sophisticated home hubs and convergence.
â€œIn the next three to five years, voice-over-technology, gesture, and facial recognition will become the key transformational technologies in the home automation market,â€ said Frost & Sullivan home & building technology Research AnalystÃ‚Â Harini Shankar.
â€œPlayers should adoptÃ‚Â deep and machine learning algorithmsÃ‚Â as these technologies will become critical.â€
Shankar added that innovation scouting, partnering, collaboration, and appropriate acquisitionsÃ‚Â will be essential to mitigate high initial investment and replacement costs, plus a lack of skilled labour.
â€œPlayers should seek to deploy easy-to-understand, customer-centric business models to increase home automation systemsÃ‚Â (HAS) market penetration,Ã¢Â€Â he said.
Read more:Ã‚Â Survey: UK consumers wary of smart home products