Smart home is a modern approach towards construction industry, which deals with integration of advanced information and communication technology inside the residential areas. Homes enabled with this technology are able to carry out most of the communication works through a secured network. Adoption of this technology brings comfort, security, convenience, and entertainment of the residents. Increasing rate of adoption from emerging markets and growth in technology within the developed regions are strong drivers for the European smart homes market. The industry is poised to make healthy growth during the next few years to come. As a result, more and more investors are interested in large scale investments across different market segments.
Segmentation in Smart Homes Industry
Basic segmentation in the European smart homes market is based on the types of products and services available in the market. Demand for these products from different countries within the European Union is also taken into consideration for detailed understanding of the current market scenario. Analysis of all these aspects of the industry helps researchers to conclude about the latest trends, competition, innovation, challenges and opportunities for the existing as well as potential companies venturing into the industry. Following are the details of the sub-segments of the industry:
- Products: Access control, security control, entertainment and energy management systems, HVAC controls, home health systems, and others
- Services: Renovation and customization, installation and maintenance, involving setting up smart home systems and remodeling the automated smart systems
- Countries: Significant countries include United Kingdom, France, Italy, Spain, Germany and rest of the Europe
Drivers and Forecasting Reports
The systems integrated with smart home technologies have strong hold of information and communication technologies. With help of various monitors, screens, and alarm systems, they warn, protect and carry out numerous household functions. Combined efforts from these systems help the consumers living in the home feel comfortable, secure, and entertained. As a result, there is a great upsurge in demand for the technologies across the European market. Replacement of original home technologies with the smart security, entertainment, and lighting systems also a prevailing trend in the industry. Technological advancements on global scale are also creating strong growth prospects for the industry within the European limits.
As a result of all these factors, the European smart homes market is poised to make healthy growth during the next five years. According to the market research reports, the industry will continue growing at a CAGR of over 16% from 2013 to 2020. At the estimated compound annual growth rate, the experts claim the industry to reach past $13.81 billion by 2020. Exponential rate of adoption, replacement and home remodeling are some vital elements responsible for this stunning growth of the industry.