REPORT SCOPE
INTRODUCTION
STUDY BACKGROUND
Home automation technology has been around for many years, but it has only recently 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 (especially electricity) and providing a sense of security. The drop in construction of new homes as a result of the financial crisis that started in 2008 has dampened the demand for home automation systems, but in the longer term, many would-be 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 enthusiast market, but now prices are dropping.
In fact, the cost of installation labor and the expense of educating electricians in this field are becoming the most inhibiting 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 allow home automation devices to integrate seamlessly and minimize the need for special wiring to connect them.
GOALS AND OBJECTIVES
This report is an updated version of a BCC report that was originally published in 2009. The report’s overall goal is to provide readers with an updated understanding of the business opportunities for providers of home automation technologies over the next 5 years, taking into account recent economic and technical developments. In support of this goal, specific objectives of the report include:
- Identifying the home automation technologies with the greatest commercial potential over the next 5 years (2011 to 2016)
- Estimating the market for these technologies in 2010
- Analyzing the technical, economic, and other demand drivers for these products, as well as other prerequisites of success in these markets
- Projecting the potential U.S. markets for these technologies through 2016
INTENDED AUDIENCE
The report is intended for providers of home automation technologies and products based on these technologies. Although it is structured around specific technologies, it is largely non-technical in nature, meaning it is concerned less with theory and jargon than with technologies that work, the amount the market is likely to purchase, and the prices consumers are willing to pay.
As such, the report’s main audience is executive management, marketing, and financial analysts. It is not written specifically for scientists and technologists, although its findings concern the markets for their work, including the availability of government and corporate research funding for different technologies. Applications should interest them as well.
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.
SCOPE AND FORMAT
The study covers the major segments of the home automation market, including:
- Lighting controls
- Heating, ventilation, and air conditioning (HVAC) controls
- Energy management controls
- Entertainment controls
- Security controls
- Integrated (i.e., multi-function) controls
The study addresses the major enabling technologies for the various types of home automation products, such as:
- Controllers
- User interface devices
- Sensors
- Actuators and output devices (e.g., dimmers, automated window coverings, dampers)
- Wiring and networking devices
The study format includes the following major elements:
- Executive summary
- Definitions
- Home automation functions
- Enabling technologies
- Market environment (e.g., economic conditions, consumer attitudes)
- Current (2010) and projected markets for home automation technologies and products through 2016
- Developers and suppliers of home automation products
- Key patents
The report’s main focus is placed on the U.S. market.
METHODOLOGY
This report is based on the results of targeted interviews with producers and users of home automation technologies and products. It is complemented by a thorough literature review as well as BCC’s internal databases. The base year for analysis and projection is 2010.
With 2010 as a baseline, market projections were developed through 2016. These projections are based on a combination of a consensus among the primary contacts combined with BCC’s understanding of the key market drivers and their impact from a historical and analytical perspective.
The methodologies and assumptions used to develop the market estimates and projections are described in detail in the chapters on home automation markets. This allows readers to see how the market estimates were developed, and if they so desire, to test the impact on the final numbers of changing assumptions (e.g., price).
AUTHOR’S CREDENTIALS
Andrew McWilliams is a partner in 43rd Parallel, LLC, a Boston-based international technology and marketing consulting firm. In addition to the previous edition of this report, Mr. McWilliams is the author of numerous other BCC Research business opportunity analyses, including EGY065B Enabling Technologies for the Smart Grid, which analyzed the market for smart home appliances; EGY052B Energy Management Information Systems: Global Markets, which reported on the market for residential energy management devices; and HLC047C Disabled and Elderly Assistive Technologies, which covered the market electronic systems that enable a person with limited mobility to control various appliances, lights, telephones, and security systems in their rooms, homes, or other surroundings. His other recent reports have included ENV011A The U.S. Market for Clean Technologies, ENV003C U.S. Indoor Air Quality Market, and ENV007B The U.S. Market for Green Building Materials.
BCC ONLINE SERVICES
BCC offers an online information retrieval service. BCC’s home page, located at www.bccresearch.com, enables readers to:
- Examine BCC’s complete catalog of Market Research Reports and place direct orders
- Subscribe to any of BCC’s many industry newsletters
- Read announcements of recently published reports and newly launched newsletters
- Register for BCC’s well-known conferences
- Request additional information on any BCC product
- Take advantage of special offers.
DISCLAIMER
The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature. This information does not constitute managerial, legal, or accounting advice; nor should it serve as a corporate policy guide, laboratory manual, or an endorsement of any product, as much of the information is speculative in nature. The author assumes no responsibility for any loss or damage that might result from reliance on the reported information or its use.
