According to an Allied Market Research report, the global home automation market was $43.09 billion in 2017 and is projected to reach $81.65 billion by 2023, a CAGR of 11.2%.
Market drivers include a surge in smartphone-controlled applications that can monitor home appliances remotely, a rise in concerns regarding safety and security of homes, an increase in government initiatives to ensure efficient use of electricity, and rapid technological advancements in connective technologies. However, lack of awareness regarding home automation and high installation costs are tending to hamper market growth.
The wireless technology segment held the largest share in 2017, at nearly three-fifths of the total market, owing to increases in Internet of things (IoT) devices and increasing adoption of wireless broadband in household electronic devices such as video surveillance and monitoring, HVAC systems, and entertainment devices. The wireless segment is expected to register the fastest CAGR of 11.6% during the forecast period.
Europe had the largest share in 2017, more than one-third of the total market, owing to a surge in demand for smart household appliances, availability of adequate connectivity infrastructure, rapid developments in technology, and adoption of several measures to improve energy efficiency. However, the Asia-Pacific region is expected to register the fastest CAGR of 17.4% during the forecast period, owing to increases in consumer awareness and financial stability, production innovation and integration, consumer demand for product differentiation, and preference for energy efficient automation systems.