After years of being relegated to niche publications, the security industry is suddenly making major headlines. First there was the news that home security systems are expected to reach revenues of $100 billion by 2020. Then it was announced that the connected home security segment is on track to $15.6 billion within the next four years. And then there's the relatively new cyber security segment, which is receiving more and more attention as American businesses conduct more work online than ever before.
Now the security industry can add another notch to its belt: The home automation market (a niche market within the broader security industry) is on track to reach revenues of $79 billion by 2022. Why the rapid rise of home automation? Market research suggests it comes down to the following five factors:
The Rise of the Internet of Things
Home automation systems are part of a much larger, cross-industry embrace of the Internet of Things (IoT). For those not familiar, the term refers to a trend in which an increasing number of everyday objects (from phones to refrigerators) can connect to the internet for a variety of purposes. So far, the rise of IoT has exemplified the idea that "a rising tide lifts all boats". As the IoT grows by leaps and bounds, it's bringing the home automation industry along with it.
Widespread Use of Smartphones
Part and parcel of the rise of the Internet of Things is the astronomic rise in the use of smartphones. A whopping 77 percent of Americans now own smartphones, and we're increasingly integrating these devices into the fabric of our lives. Many consumers now expect that the products they use on a regular basis will integrate with their smartphones via apps. Home automation taps into this demand and helps ensure the home security industry keeps pace with consumer preferences and expectations.
Consumer Preference for Remote Monitoring Options
The widespread use of smartphones is a major driver behind consumer preferences for remote monitoring options, which have been on the rise for several years. People can now access their email, bank accounts, and other personal information from anywhere via their smartphones--and consumers see no reason why they shouldn't be able to do the same when it comes to monitoring their home security systems. Convenience is the name of the game, and home automation systems deliver. Additionally, consumers are drawn to the greater peace of mind afforded by remote monitoring, which allows them to check in on and control their home automation systems from anywhere with internet access.
Major Brands Getting in on the Action
Home automation is no longer a fringe idea, and that's largely thanks to the fact that major brands such as Vivint and Honeywell saw the opportunities afforded by home automation and decided to dive into the market. These big brands have been able to apply their extensive resources to rapidly advancing home automation systems and marketing these systems to consumers in appealing ways. At the same time, market competition has driven down prices, making home automation more affordable and accessible to the average consumer.
The Allure of Energy Savings
Consumers are drawn to a variety of functionalities promised by home automation systems, one of the most notable of which is the control of entertainment systems. But perhaps the most alluring function of all is lighting control, which enables homeowners to reduce their electricity use. That's thanks to the fact that many home automation systems include sensors that automatically adjust artificial lighting to correspond with the presence of natural light. Not only does this allow homeowners to reduce their eco-footprint, but it allows them to enjoy significant cost savings in the process.
Taken together, these five factors are helping to drive the home automation industry to unprecedented success. While 2022 may mark a milestone for the industry, it's really just the beginning of a long-term trend toward home automation.