North America to contribute 46% in home automation revenue by 2020, says ABI Research

Smart home automation systems may still be a nascent market segment, but according to ABI Research, it is going to grow at a compound annual growth rate of 21 percent between 2015 and 2020.

During this five-year period, North America will lead the market, contributing 46 percent globally, followed by Europe and Asia-Pacific. A number of traditional telcos and cable operators, including AT&T (NYSE: T) with Digital Life, Frontier Communications, Cincinnati Bell and Comcast (NASDAQ: CMCSA), have been rolling out various forms of home services in recent years.

These service providers have been offering these services as a way to increase average revenue per user (ARPU) and reduce subscriber churn.

Adarsh Krishnan, senior analyst with ABI Research, said in a release that the majority of the initial home automation service rollouts have been focused on security, but there's growing adoption of smart plugs and air quality monitors.

Between North America, Europe and Asia-Pacific, there are regional differences in device adoption, the research firm notes.

In North America and Western Europe, residential customers saw strong use of security cameras, particularly those that include embedded motion sensors that are used not only for home security but also indoor activity tracking. Meanwhile, in China the adoption of environment sensors has continued to ramp to address concerns about air quality. This has prompted Alibaba, Xiaomi, Tencent and Baidu to enter China's smart home market with their own lines of air quality monitors.

From a technology perspective, proprietary wireless technologies from United Technologies, Honeywell and Bosch Security--which operate in the 433 MHz and 900 MHz spectrum bands--continue to dominate in low-cost battery-operated devices, including contact sensors and motion sensors.

At the same time, low power wireless mesh technologies such as Z-Wave and ZigBee also continued to increase in adoption in the smart home market. Sigma Designs' Z-Wave is embedded in more than 1,000 interoperable devices while ZigBee's latest 3.0 protocol will help drive its growth as it addresses many of the earlier interoperability issues.

For more:
- see the release

Related articles:
Parks: One-fourth of U.S. broadband homes see value in home monitoring services
Smart light bulbs to reach quarter of a billion in shipments by 2020, says ABI Research
Verizon revamps home automation push, appears to be near release of Quantum gateway
C Spire adds next-gen home automation to its service lineup
Smart home control market to rise to $6B by 2019, says ABI Research

Suggested Articles

Segra, one of the largest fiber infrastructure companies in the Eastern U.S., has bought NorthState for an undisclosed sum.

IBM CEO Arvind Krishna is looking to right the ship and return Big Blue to profitability by reducing the workforce.

HPE is picking up the pieces from a rocky Q2 due to supply chain issues related to the coronavirus pandemic.