by Brianna Crandall — February 10, 2014—Allied Market Research recently released an analysis that concludes that the global market for smart homes and buildings is expected to grow at a compound annual growth rate (CAGR) of 29.5% between 2012 and 2020, and the market revenue of $4.8 billion in 2012 is expected to grow to $35.3 billion by 2020.
Titled Global Smart Homes, Buildings (Energy Efficient, Automated) Market (Applications, Technologies, Products and End-User), Size, Share, Trends, Analysis, Research, Future Demand, Scope and Forecast, 2013-2020, the study determined that the main drivers for the growth of the market are government regulations, rising energy costs, and the rising concern for the environment.
The report offers an in-depth analysis of the global smart, automated and energy-efficient homes and buildings market, including the drivers, restraints and opportunities for growth.
The report notes that the construction industry is using building automation systems (BAS) in response to the growing demands for greater energy efficiency and lower greenhouse gas emissions.
The revenue for safety and security within the market is expected to reach $6,132.4 million by 2020, with an expected CAGR of 34.6% from 2013 to 2020; this particularly reflects safety concerns for aging parents and young children in the home, notes the report.
However, there are some factors such as high upfront cost and lack of standards and interoperability that are expected to act as restraints for market growth, cautions the report.
North America is expected to generate revenue of $12.4 billion by 2020 growing at a CAGR of 25.9% from 2013 to 2020. Asia-Pacific is expected to grow at an even higher rate of 37.7% from 2013 to 2020.
The report profiles some of the key market players, such as Cisco Systems, Control4 Corporation, Emerson Electric Co., Leviton, Honeywell International, LG Electronics, Schneider Electric, Siemens Buildings Technologies, and United Technologies Corporation (UTC). The report also discusses key strategies used by these companies for sustainable growth in the market.
