European home automation market to exceed $800mn by 2022
In its study, ‘European home automation systems, forecast to 2022’, Frost and Sullivan, a global market research analyst, has predicted that the total European home automation market will reach $806.1mn by 2022.
The industry is expected to see a compound annual growth rate (CAGR) of 15.8%, largely down to the growth of disruptive and innovative technologies such as product-as-a-service (PaaS) solutions and IoT.
"In the next three to five years, voice-over-technology, gesture, and facial recognition will become the key transformational technologies in the home automation market," said Frost & Sullivan home & building technology Research Analyst, Harini Shankar.
"Players should adopt deep and machine learning algorithms as these technologies will become critical to future home automation systems."
The innovation of everyday technologies such as wearables, smartphones, Wi-Fi and Bluetooth have all been influenced by a number of trends including partnerships among manufacturers, the rising number of mergers and acquisitions, the development of new business models and the expansion of brands, all aimed at facilitating market growth.
“Innovation scouting, partnering, collaboration, and appropriate acquisitions will be essential to mitigate high initial investment and replacement costs, and lack of skilled labour," noted Shankar.
"Players should seek to deploy easy-to-understand, customer-centric business models to increase HAS market penetration."
Recent examples include disruptive connectivity and hub models, such as the Vivint, Amazon Echo, and Nest.