ABI Research: 90 Million Homes Will Have Home Automation by 2017

  • Home Automation
LONDON - New subscription-based home automation offerings are rapidly transforming the way consumers will monitor, secure, and control their homes, according to new research from ABI Research. Long the preserve of expensive, custom-installed technology, home automation is moving into the mainstream, with companies such as ADT, Comcast, Verizon and Lowe’s all adding home automation to their customer services.

Connectivity is a key factor driving new entrants into the market. Home broadband penetration rates are high, as is the potential for embedded cellular connections to connect systems; in addition, smartphone applications allow consumers to control and check their homes from wherever they are.

As connectivity options make home automation systems more useful, these systems are also becoming more affordable. Traditional up-front fees for installation and equipment are increasingly being replaced by monthly subscription offerings – often bundled alongside already existing services.

“The North American market has long been the dominant region for home automation systems, and now it is leading the way with managed home automation subscription services,” says Jonathan Collins, principal analyst for wireless health care and M2M. "In the past two years, service providers, including telecoms, cable, security and energy, have all launched additional home automation services for managing energy use or security monitoring to their suites of monthly billed services."

Over the next five years, the managed home automation market will grow installments at a CAGR of 60 percent between 2012 and 2017, outstripping the 31 percent growth across the total market of luxury, mainstream and DIY home automation deployments.

The evolution of the home automation market into the mainstream requires a raft of new partnerships. No company is able to provide all the parts, so telecom, cable, security, and utility providers are all looking to smart devices vendors, managed software providers, local installation specialists and others to support the broad rollout of home automation services.

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