Driving the market, the report says, is growing demand for the convenience of remote and real-time operation of smart home systems fueled by easier access to Internet connectivity. According to the report, the growing adoption of automation in security, lighting, entertainment, HVAC, energy management, and smart kitchen applications is expected to "revolutionize the market by 2025."
Both Internet accessibility and the growing penetration of Internet of Things (IoT) are encouraging users to adopt smart home automation technology. Wireless technologies - such as ZigBee, Z-Wave, EnOcean, C-Bus, Wi-Fi, Bluetooth, KNX, and Thread - have helped simplify and lower the cost of installing automated systems. Meanwhile, cost and user awareness of devices are expected to remain potential challenges over the forecast period.
The report segments the market among hardware, software, and services components, with hardware expected to dominate by 2025. However the services segment is expected to see significant growth as a result of the increasing adoption of smart home automation technology, with information technology (IT) becoming "an essential part of the product itself."
Among application segments, entertainment is anticipated to dominate the market by 2025, while smart kitchens are expected to see significant growth from high demand for smart appliances. The energy management segment too is expected to see significant growth as a result of "the need for push button control, energy-preservation, shifting demographic preferences and need to safeguard the global environment from polluting effluents."
Looking at the market by region, North America currently dominates as a result of its large consumer base, and is expected to grow at a compound annual growth rate (CAGR) of more than 8% from 2017 to 2025. However, North America, Europe, and Asia Pacific are all anticipated to remain the key revenue generating regions over the forecast period.
Key industry participants listed in the report include ABB Ltd. (Switzerland), Control4 Corporation (U.S.), Crestron Electronics, Inc. (U.S.), Honeywell International Inc. (U.S.), Ingersoll-Rand plc (Ireland), Johnson Controls