Rise in energy management systems drives growth
The global smart home as a service market consists of a few global and local players. The market is considerably fragmented, says Transparency Market Research (TMR) in a report. The global smart home as a service market share is evenly categorized among a few major companies. There are some noteworthy players heading the global smart home as a service market to deliver quality products to end-users. The most important enterprises operating in the global smart home as a service market are Ingersoll-Rand plc. (Nexia), Johnson Controls, Inc., Protection One Alarm Monitoring, Inc., The ADT Corporation, and Vivint, Inc.
As said in the report of TMR, the global smart home as a service market was valued at US$2.46 bn in 2016. It is projected to achieve US$10.9 bn by 2025 by stretching out at a CAGR of 18.1% for the duration of 2017 to 2025. Based on service, the global smart home as a service market is categorized into managed service and integrated service. The managed service can be defined as the active management of the smart home as a service solution by a third party, on behalf of the consumers. On the other hand, the integrated service can be defined as a specific constituent of the smart home as a service solution to guarantee quality of service on networks.
Geographically, North America is expected to lead the global smart home as a service market owing to slow growth of industries in the forthcoming years. Moreover, rise in consumer expenses particularly in US will be driving the demand of the global smart home as a service market. This is attributed to the high demand for numerous control gadgets, comprising lighting control solutions. The existence of a large base of end users in advanced economies like the US is factoring the market. Along with, the rise in demand for energy management systems is the key aspect fuelling the demand for smart home as a service market in this economy.
Growth in Infrastructure is driving the Global Smart Home as a Service Market
As the population around the world increases, the per-head consumption and energy demand also increases. There are costs associated with upgradation and maintenance of aging infrastructure, due to high demand. This is driving resilience in smart home as a service market.
Smart energy management technologies help utilities and distributors anticipate and manage loads better, reduce the requirement for costly infrastructure development, and improve service quality and customer satisfaction. Energy management in smart homes mainly comprises of smart meters, smart appliances, energy management system for appliances, and home power generation, all functioning on smart grids. Moreover, changing trends in smart home designs are likely to boost the demand for smart home as a service market further.
Security Risk for Smart Homes, the Biggest Challenge for the Market
The biggest challenge faced by the smart home as a service market is security risks. Since nearly everything in a smart home is connected to the internet, there is an increased threat of cyber-crime. Every device in a smart home can easily convey the whereabouts, and usage time of the owner. Data of this magnitude makes the user completely vulnerable to cyber-attacks, putting their lives at risk. Implementing foolproof smart home cyber security features in their products is a primary goal for players while designing smart home technology, is the way to overcome this challenge. This fight against cyber-crimes will boost the global smart home as a service market.