Australian smart home automation market to reach almost $1b by 2017
The Australian smart home automation market will generate $160 million in device revenues in 2014 and is expected to grow to $917 million by 2017, according to a new study published today by emerging technology analyst firm Telsyte.
The arrival of new, affordable DIY smart home automation products is expected to make ‘the Internet of things at home’ a reality for many Australian consumers over the next few years. Telsyte believes there is a groundswell of pent-up demand for home automation products that work easily with Wi-Fi in the household.
The study reveals that energy management, lower cost devices, and unobtrusive wireless DIY installations are key drivers for the adoption of smart home automation systems.
Telsyte believes the Australian smart home automation market will evolve through a number of stages over the next decade. Within two years, there will be a significant opportunity to unify the large installed base of disparately connected devices under a master control system. Telsyte defines the master control system as a “smart home hub”. This hub will give service providers an opportunity to generate annuity and subscription revenue, such as security monitoring.
Wireless hubs enabling the smart connected home
Telsyte has determined that smart home automation systems are appealing to mainstream buyers, regardless of house type (house or apartment), ownership type (renters or owners), and house age.
Home owners are also positive about home automation with the majority of survey respondents believing that home automation systems can increase the value of homes.
According to Telsyte’s research, the successful centrepiece of home automation enablement will be a multi-purpose, multi-connected hub that is standards-based and manufacturer agnostic.
Telsyte Senior Research Manager Sam Yip says these hubs will be controllable and programmable via the cloud and mobile computing devices such as tablets and smartphones.
Telsyte expected that by 2017, smart hubs – connectors for disparate networked devices – will be the largest segment of the smart home with nearly 40% of the total market value.
The findings are part of the Telsyte Australian Smart Home Automation Market Study 2014, the first comprehensive industry study of its kind for the local market. The independent study is based on interviews with key market participants and a survey of a representative sample of 1,018 consumers conducted in late 2013.
The Telsyte Australian smart home automation market provides market sizing and forecasts for the following ‘smart’ sub-segments:
- Smart Light Bulbs
- Home Wireless Sensors
- Smart Security (e.g. Sensors, locks, and doors)
- Smart Gardening (Monitoring and irrigation)
- Smart Connected Home Hubs
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About the Telsyte Australian Smart Home Automation Study 2014
Telsyte’s Australian Smart Home Automation Study 2014 is available to subscribing organisations and includes:
• Market sizing and forecasts.
• Home connectivity trends and positioning.
• Smart home applications and services.
• End-user trends including adoption, usage, attitudes and intentions by consumer segments.
• Preferred service providers and service models.
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Our market leading coverage includes mobility, enterprise IT, digital media and telecommunications. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au