Home Automation: Business Is Booming
Home Automation: Business Is Booming Across the Globe
Quick – name an industry whose market value is not only growing but actually expected to double in the next five years. The answer is home automation, described in a recent market research report as experiencing profound worldwide growth.
Or as “Mad Money” host Jim Cramer might say, the home automation business has boo-yah written all over it.
The research and consulting firm MarketsandMarkets issued the report in mid-November. The findings include the prediction that the global market for home automation controls, with an estimated value of $19.5 billion in 2012, will grow to more than $48 billion by the year 2018.
So what’s driving this projected $28 billion surge in the smart-home industry?
A climate for growth
Since many types of home automation systems include home security functions, you might think the culprit is burglary. However, statistical research shows break-ins and other crimes generally declining in most of the world’s larger, developed countries.
According to the MarketsandMarkets report, one of the main factors in the growth of home automation is energy – costs, consumption and conservation.
On the long list of smart-home benefits, you’ll find energy efficiency near the top. Automated control systems let homeowners program their thermostats to operate more effectively. Some smart-home users say this feature helps them save 20 percent or more on energy bills.
Home automation’s future
Companies that supply home automation equipment and services are sure to benefit from the expanding market, but they won’t be the only ones.
Technological advances, particularly in wireless access systems, have continued to improve the performance and availability of smart-home systems. Generally speaking, a product that becomes more accessible and user-friendly means good news for consumers.
It’s not only billions of dollars up for grabs in the rapidly expanding home automation market. It’s also more opportunities for consumers to reap the benefits of energy savings, improved home security and greater household convenience.