The adoption of wireless technologies for connectivity has boosted the home automation market unleashing a number of trends:
Proliferation of technologies
There are many wireless technologies used in home automation including Bluetooth, Wi-Fi, ZigBee and Z-Wave. Companies weigh trade-offs against application requirements which define parameters such as range, power consumption, reliability, data rate, security, and addressing. Home automation companies are forming alliances and forums to ensure improvement in user experience and expand market power and also proper operation of system. This has led to clustering of large industry players jockeying for supremacy in different camps.
Building intelligence
Data science and machine learning techniques could be applied to user data to derive information, such as predicative behavior, leading to differentiated services and new revenues. This multifaceted issue remains in the form of cloud at this stage as it has implications on consumer privacy that many regulators are grappling with.
Heightened competition
Competition in the home automation segments is continuously increasing due to Do-It-Yourself kits and luxury installations. Along with this, Cloud-based services and general purpose controllers are driving the market.
Reliance on the ‘Cloud’
Cloud can be used for storage, compute and networking which serves to reduce the cost of user devices and ease the introduction of new services. Leveraging the Cloud requires a framework for management, storage and backup, development in model, and interface with private and public service providers. Integration of Cloud services will bring drastic change in home automation sector.
The home automation market is in the phase of a rapid change which began a few years ago at the advancement of smartphones and wireless data service. It has since accelerated to breakdown the boundaries of established players as new entrants challenge traditional approaches with new business models, technologies and applications. The ecosystem continues to expand with record high investments and M&A activities. The race to own the home automation market is pursued from different angles by companies in adjacent sectors. The result is an ecosystem at an early stage of formation is beginning to meet the needs of ever more knowledgeable and demanding users. The home automation market will always remain a focal point within the greater Internet of Things market space in the future.
