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U.S. Home Automation Market To Reach $5.5 Billion In 2016

September 20, 2011

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Wellesley, Mass. – In a recent release,HOME AUTOMATION SECURITY TECHNOLOGIES, PRODUCTS, AND MARKETS (IAS031B) from BCC Research (, the U.S. market for home automation totaled nearly $3.4 billion in 2011. That value is projected to reach $5.5 billion in 2016 after increasing at a five-year compound annual growth rate (CAGR) of 10.5%.

The U.S. home automation market can be broken down into two segments – lighting, home entertainment and security; and HVAC (heating, ventilation, air conditioning) and energy management.

The segment made up of lighting, home entertainment, and security held a value of $2.1 billion in 2011, and is expected to grow at a CAGR of 12.2% to reach $3.8 billion in 2016.

The segment made up of HVAC and energy management was worth $1.2 billion in 2011 and should be worth $1.7 billion in 2016, a CAGR of 7.4%.

Home automation technology has been around for many years but only recently has it begun to enter the mainstream. The reasons for home automation’s growing popularity include developments on the demand side as well as the supply side. 

On the demand side, rising incomes and standards of living have combined with increased concerns regarding energy and security to increase the attractiveness of technologies that promise to enhance the owner’s quality of life, while also making the most efficient use of energy, namely electricity. In the longer term, many new homebuyers are younger, technologically savvy people with an affinity for the latest electronic devices, thus creating a favorable market environment for home automation systems.

On the supply side, the declining cost and complexity of new home automation products is helping to attract new buyers. Until a few years ago, the cost of quality home automation components was prohibitive for all but the enthusiasts market, but now prices are dropping.

The decrease in construction of new homes as a result of the financial crisis that started in 2008 has dampened the demand for home automation systems. In the longer run, the cost of installation labor and the expense of educating electricians in this field are becoming the most inhibiting market growth factors. Fortunately, other developments are helping to reduce the difficulty and cost of installation. These developments include the growing use of standards-based wireless technologies that allows home automation devices to integrate seamlessly and minimizes the need for special wiring to connect them.

The report is intended for providers of home automation technologies and products based on these technologies. The report’s main audience is executive management, marketing, and financial analysts. Government agencies as well as environmental and public policy interest groups should also find the report interesting, particularly the sections that include analyses of home automation technologies that conserve energy.

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Source: BCC Research

The U.S. Market for Home Automation and Security Technologies( IAS031B )
Publish Date: Aug 2011    

Data and analysis extracted from this press release must be accompanied by a statement identifying BCC Research LLC, 49 Walnut Park, Building 2, Wellesley, MA 02481, Telephone: 866-285-7215; Email: as the source and publisher. Thank you.