Smart Homes and Home Automation – 8th Edition

Smart Homes and Home Automation – 8th Edition

Smart Homes and Home Automation is the eighth consecutivereport from Berg Insight analysing the latest developments on theconnected home markets in Europe and North America.

This report in the IoT Research Series provides you with 310pages of unique business intelligence including 5-year industryforecasts and expert commentary on which to base yourbusiness decisions.

Highlights from the eighth edition of the report:

Insights from 30 executive interviews with market leadingcompanies.
360-degree overview of the smart homes & home automationecosystem.
Summary of industry trends in key vertical market segments.
Statistical data on adoption of smart home systems in Europe andNorth America.
New market forecasts lasting until 2024.
Detailed reviews of the latest initiatives launched by industryplayers.
Updated profiles of the key vendors on this market.

This report answers the following questions:

Which are the main verticals within smart homes and homeautomation?
What are the main drivers behind growth in Europe and NorthAmerica?
What are the challenges and roadblocks towards widespreadadoption?
What are the business models and channels-to-market for smarthome solutions?
Which are the leading whole-home system vendors in Europeand North America?
How are product OEMs and whole home solution vendorspositioning themselves?
What home connectivity technologies are smart home systemvendors betting on?
What is the potential market size for cellular IoT in homeautomation?
How will the smart home market evolve in the next five years?




Executive summary

Smart home and home automation systems include a wide range of solutions for controlling,monitoring and automating functions in the home. Berg Insight’s definition of a smart homesystem is one that is accessible from remote and includes a smartphone app or a web portaluser interface. Devices that only can be controlled and automated locally, through switches,timers, sensors and remote controls, are thus not included in the scope of this study. Smarthome systems can be grouped into seven primary categories: security and access controlsystems; energy management and climate control systems; audio-visual and entertainmentsystems; lighting and window control systems; healthcare and independent living systems;home appliances and service robotics.

The North American smart home market recorded strong growth during 2019. The installedbase of smart home systems increased by 28.5 percent to reach 172.6 million at the yearend. An estimated 19.1 million of these were multifunction or whole-home systems whereas153.5 million were point solutions designed for one specific function. As some homes havemore than one smart system in use, the installed base totalled an estimated 43.1 millionsmart homes at the end of the year. This corresponds to 30.2 percent of all households,placing North America as the most advanced smart home market in the world. Between 2019and 2024, the number of households that adopt smart home systems is forecasted to grow ata compound annual growth rate (CAGR) of 12.5 percent, resulting in 77.9 million smarthomes. The market value reached US$ 27.0 billion (€_24.1 billion) in 2019, an increase of20.5 percent year-on-year. The market value is expected to grow at a CAGR of 14.1 percentbetween 2019 and 2024, reaching US$ 52.3 billion (€ 46.7 billion) in yearly revenues at theend of the forecast period.

The European market for smart home systems is still a few years behind North America, bothin terms of market penetration and maturity. At the end of 2019, there was a total of 111.9million smart home systems in use in the EU28+2 countries, up from 83.9 million in theprevious year. Around 10.8 million of these systems were multifunction or whole-home systems whereas 101.1 million were point solutions. This corresponds to around 40.3 millionsmart homes when overlaps are taken into account, meaning that 17.4 percent of allhouseholds in Europe were smart at the end of the year. The number of Europeanhouseholds to adopt smart home systems is forecasted to grow at a compound annualgrowth rate (CAGR) of 20.2 percent during the next five years, resulting in 101.1 million smarthomes by 2024. The market value grew by 28.7 percent to € 16.6 billion (US$ 18.5 billion) in2019. The market value is forecasted to grow at a CAGR of 24.3 percent between 2019 and2024 to reach € 49.0 billion (US$ 54.9 billion) at the end of the forecast period.

A point solution will in many cases constitute the consumer’s first smart home purchase.Compared to whole-home systems, point solutions generated 62 percent of the combinedmarket revenues in North America and Europe. The most popular point solutions to date, interms of sold units, include smart thermostats, smart light bulbs, smart plugs, connectedsecurity cameras and voice controlled smart speakers. These products are marketed byincumbent OEMs such as Signify, Resideo, Danfoss, Belkin, Chamberlain, Kwikset and AssaAbloy and newer entrants such as Ecobee, Sonos, Arlo, Netatmo, IKEA and Wyze Labs. Inthe whole-home system market, traditional home automation vendors such as CrestronElectronics, Control4, Savant Systems, eQ-3 and Loxone are facing new competition ascompanies from adjacent industries have entered the market. Communications and securityservice providers such as ADT, Vivint, Comcast and Brinks Home Security (Monitronics) haveestablished themselves among the largest whole-home solution vendors in North America.Major vendors in Europe include Centrica, Somfy, Deutsche Telekom and Verisure.

The Covid-19 pandemic has so far had a very limited negative effect on the smart homemarket in North America and Europe. While sales in brick-and-mortar stores declined, onlinesales instead surged. Many people spent more time at home during the pandemic and thusbecame interested in home improvement activities such as adding smart homes devices.Berg Insight expects that working from home will become increasingly common in the future,even as Covid-19 related lockdowns and restrictions are eased. Smart home products thatmake people feel safer at home as well as enable time-savings and convenience are likely tobe popular among the many people that spend an increasing share of their time at home.

Executive summary
1 Smart homes, connected homes and home automation
1.1 Introduction
1.2 Types of home automation
1.2.1 Security and access control systems
1.2.2 Energy management and climate control systems
1.2.3 Audio-visual and entertainment systems
1.2.4 Lighting and window control systems
1.2.5 Healthcare and independent living
1.2.6 Home appliances
1.2.7 Service robotics
1.2.8 Multifunction and whole-home automation systems
1.3 Home automation market segments
1.3.1 Mainstream houses and multi-family dwellings
1.3.2 The custom (luxury) segment
1.3.3 New homes versus existing homes
1.4 Channels to market
1.4.1 Professional installation
1.4.2 Retail
1.4.3 Service providers
2 Networks and communications technologies
2.1 Overview
2.1.1 Different approaches to establishing interoperability
2.1.2 Technology choices of product OEMs
2.1.3 Technology choices of whole-home solution vendors
2.2 Smart home networking technologies
2.2.1 ANT
2.2.2 Bluetooth
2.2.3 DECT ULE
2.2.4 EnOcean
2.2.5 HomePlug
2.2.6 HomeGrid
2.2.7 Insteon
2.2.8 io-homecontrol
2.2.9 KNX
2.2.10 LPWA
2.2.11 OpenTherm
2.2.12 Thread
2.2.13 Wi-Fi
2.2.14 Zigbee
2.2.15 Z-Wave
2.3 Smart home middleware and ecosystems
2.3.1 Amazon Alexa
2.3.2 Google Home and Google Assistant
2.3.3 Apple HomeKit and Siri
2.3.4 IFTTT
2.3.5 Open Connectivity Foundation
2.3.6 Yonomi
2.4 Smart home platforms
2.4.1 Amdocs
2.4.2 AWS (Amazon)
2.4.3 Ayla Networks
2.4.4 ThroughTek
2.4.5 Tuya
2.4.6 Waylay
3 Technology providers and OEMs
3.1 Market overview
3.1.1 Compatibility with whole-home systems
3.1.2 Point solutions are popular among entry-level smart home consumers
3.1.3 Smart home strategies for product OEMs
3.1.4 New entrants challenge incumbents with connected products
3.1.5 The popularity of smart speakers boosts smart home product sales
3.2 Security and access control system vendors
3.2.1 Ajax Systems
3.2.2 Arlo Technologies
3.2.3 Assa Abloy
3.2.4 August Home (Assa Abloy)
3.2.5 Canary
3.2.6 Chamberlain Group
3.2.7 Frontpoint
3.2.8 Hikvision
3.2.9 Kwikset
3.2.10 Minut
3.2.11 Reolink
3.2.12 Ring (Amazon
3.2.13 Schlage
3.2.14 Simplisafe
3.2.15 Wyze Labs
3.2.16 YI Technology
3.3 Energy management and climate control system vendors
3.3.1 Climote
3.3.2 Danfoss
3.3.3 Ecobee
3.3.4 Eve Systems
3.3.5 Geo
3.3.6 Lux Products (Johnson Controls)
3.3.7 Netatmo (Legrand)
3.3.8 Schneider Electric
3.3.9 Tado
3.3.10 Quby (Eneco)
3.4 Audio-visual and entertainment system vendors
3.4.1 Bose
3.4.2 Harman (Samsung Electronics)
3.4.3 Kaleidescape
3.4.4 Naim Audio
3.4.5 Sonos
3.4.6 Sony
3.4.7 Sound United
3.5 Lighting and window control system vendors
3.5.1 Acuity Brands
3.5.2 Belkin
3.5.3 iDevices (Hubbell)
3.5.4 IKEA
3.5.5 Leviton
3.5.6 LIFX (Buddy Technologies)
3.5.7 Lutron Electronics
3.5.8 Ledvance (MLS)
3.5.9 Plejd
3.5.10 Signify
3.5.11 Velux
3.5.12 View
3.6 Healthcare and independent living
3.6.1 Climax Technology
3.6.2 Doro
3.6.3 Enovatio
3.6.4 Hidea Solutions
3.6.5 Just Checking
3.6.6 Qorvo
3.6.7 Sensio
3.6.8 Tunstall Healthcare Group
3.7 Home appliance
3.7.1 BSH (Bosch)
3.7.2 Electrolux
3.7.3 GE Appliances (Haier)
3.7.4 Haier
3.7.5 LG Electronics
3.7.6 Whirlpool
3.8 Service Robotics
3.8.1 Double Robotics
3.8.2 Dyson
3.8.3 Husqvarna
3.8.4 iRobot
3.8.5 Neato Robotics
3.8.6 Robomow
3.8.7 Softbank Robotics
3.8.8 Zucchetti Centro Sistemi (Ambrogio Robot)
4 Service providers and whole-home system vendors
4.1 Market overview
4.1.1 The European market
4.1.2 The North American market
4.1.3 Attach rates per application area in whole-home systems
4.2 Market segments and go-to-market strategies
4.2.1 Traditional home automation
4.2.2 DIY systems
4.2.3 Professionally monitored security
4.3 Whole-home system OEMs
4.3.1 ABB
4.3.2 Alarm.com
4.3.3 Bosch
4.3.4 Carrier
4.3.5 Control4 (SnapAV)
4.3.6 Crestron Electronics
4.3.7 Delta Dore
4.3.8 D-Link
4.3.9 Essence Group
4.3.10 eQ-3
4.3.11 Fibar Group (Nice Group)
4.3.12 Gigaset
4.3.13 Grenton
4.3.14 Legrand
4.3.15 Logitech
4.3.16 Loxone Electronics
4.3.17 MiOS (Ezlo Innovation)
4.3.18 Google Nest
4.3.19 Livisi
4.3.20 Nice Group
4.3.21 OBLO Living
4.3.22 Telldus (Proove)
4.3.23 Resideo Technologies
4.3.24 Safe4 Security Group
4.3.25 Samsung Electronics
4.3.26 Savant Systems
4.3.27 Somfy
4.3.28 TP-Link
4.3.29 Trane Technologies
4.3.30 Viva Labs
4.3.31 Wink
4.3.32 Xiaomi
4.4 Smart home service provider
4.4.1 ADT
4.4.2 Altice France
4.4.3 AT&T
4.4.4 Brinks Home Security (Monitronics)
4.4.5 Centrica
4.4.6 Comcast
4.4.7 Cox Communications
4.4.8 Deutsche Telekom
4.4.9 Verisure
4.4.10 Vivint Smart Home
4.4.11 Vodafone
5 Market forecasts and conclusions
5.1 Market trends and analysis
5.1.1 Greater consumer awareness benefits all players
5.1.2 Lower price points open the doors to the mass market
5.1.3 Cloud-based systems and the integrated hub opportunity
5.1.4 Open versus closed smart home ecosystems
5.1.5 Lack of interoperability causes problems for users
5.1.6 Short product lifecycles damage consumer trust
5.1.7 Security and integrity issues when the home is connected
5.1.8 Smart home products enable home insurance discounts
5.1.9 Professional security leads the North American smart home market
5.1.10 Cellular IoT connectivity in the smart home market
5.1.11 Mergers and acquisitions in the smart home industry
5.2 Popular smart home product categories
5.2.1 Smart speakers
5.2.2 Smart thermostats
5.2.3 Smart lighting
5.2.4 Smart plugs
5.3 Europe
5.3.1 Revenues
5.3.2 Shipments
5.3.3 Installed base
5.4 North America
5.4.1 Revenues
5.4.2 Shipments
5.4.3 Installed base
Glossary
Index
List of Figures
Figure 1.1: Example of an alarm system
Figure 1.2: Examples of security and access control systems
Figure 1.3: Examples of energy management and climate control devices
Figure 1.4: Sonos multi-room audio system
Figure 1.5: Philips Hue lighting system
Figure 1.6: Care@Home activity monitoring solution
Figure 1.7: Samsung Family Hub Smart Fridge
Figure 1.8: Examples of service robots
Figure 1.9: Types of markets for home automation
Figure 1.10: Households, dwelling types and homeownership by country (NA 2019)
Figure 1.11: Households, dwelling types and homeownership by country (EU28+2 2019)
Figure 1.12: Definition of luxury versus ultra-luxury home
Figure 1.13: Existing homes and housing starts (North America 2016–2019)
Figure 1.14: Existing homes and housing starts (EU28+2 2016–2018)
Figure 1.15: Channels to market
Figure 2.1: Illustration of interoperability at different levels
Figure 2.2: Examples of technology choices by product OEMs
Figure 2.3: Examples of technology choices by whole-home solution vendors
Figure 2.4: Dotdot over Thread
Figure 2.5: Connected Home over IP application layer
Figure 2.6: Examples of IFTTT applets
Figure 2.7: AWS IoT services
Figure 2.8: The Kalay platform
Figure 2.9: Tuya Smart overview
Figure 3.1: Installed base per application area (EU28+2 and NA 2019)
Figure 3.2: Smart home strategies of product OEMs
Figure 3.3: Examples of incumbents and new entrants by application area
Figure 3.4: Ajax Systems security system and devices
Figure 3.5: Arlo Go and Arlo Video Doorbell
Figure 3.6: The Yale Assure Lever lock and August Home mobile app
Figure 3.7: Second generation of Point
Figure 3.8: Reolink Go
Figure 3.9: Danfoss Ally smart heating system
Figure 3.10: Ecobee thermostat and light switch
Figure 3.11: Eve Aqua Smart Water Controller
Figure 3.12: Lux Kono smart thermostat
Figure 3.13: Toon smart thermostat
Figure 3.14 Bose Home Speaker 500
Figure 3.15: Polk Command Bar with Amazon Alexa built-in
Figure 3.16: Juno AI light and speaker with Amazon Alexa built-in
Figure 3.17: IKEA Trådfri smart kit
Figure 3.18: Plejd dimmers, gateway and app.
Figure 3.19: Bosch Home Connect
Figure 3.20: GE Kitchen Hub
Figure 3.21: Double 2 and Double 3 telepresence robots
Figure 3.22: Dyson Heurist robot vacuum cleaner
Figure 3.23: The Gardena Smart System from Husqvarna
Figure 4.1: Penetration of whole-home automation systems (EU28+2 and NA 2019)
Figure 4.2: Competitive landscape – Service providers and whole-home system OEMs
Figure 4.3: Top whole-home system vendors (EU28+2 2019)
Figure 4.4: Top whole-home system vendors (NA 2019)
Figure 4.5: Attach rates in whole-home systems (EU28+2 and NA 2019)
Figure 4.6: Market segments
Figure 4.7: Installed base of whole-home systems (North America 2019)
Figure 4.8: Professionally monitored home security systems by country (EU28+2 2019)
Figure 4.9: eQ-3 Homematic IP system
Figure 4.10: Examples of Fibaro products
Figure 4.11: Gigaset Smart Home security system
Figure 4.12: Nest Thermostat and Nest Cam IQ Outdoor
Figure 4.13: TellStick ZNet Lite V2 Gateway
Figure 4.14: Honeywell Home ProSeries security and smart home platform
Figure 4.15: Savant Systems smart home system
Figure 4.16: TP-Link’s Deco M9 Plus Smart Home Mesh Wi-Fi System
Figure 4.17: ADT Smart Package
Figure 4.18: The Complete home security system
Figure 4.19: Verisure home alarm system
Figure 4.20: Verisure alarm connections per country (Q4-2019)
Figure 5.1: Smart home penetration and installed base (EU28+2 and NA 2018–2024)
Figure 5.2: Smart homes with professional security (North America 2018–2024)
Figure 5.3: Cellular connections in the smart home market (2018–2024
Figure 5.4: Mergers and acquisitions in the smart home industry (World 2014–2018)
Figure 5.5: Mergers and acquisitions in the smart home industry (World 2018–2020)
Figure 5.6: Installed base of voice-controlled smart speakers (EU and NA 2018–2024)
Figure 5.7: Homes with smart thermostats (EU28+2 and NA 2018–2024)
Figure 5.8: Installed base of smart light points (EU28+2 and NA 2018–2024)
Figure 5.9: Installed base of smart plugs (EU28+2 and NA 2018–2024)
Figure 5.10: Market overview (EU28+2 2018–2024)
Figure 5.11: Smart home revenues (EU28+2 2018–2024)
Figure 5.12: Market share by whole-home system segment (EU28+2 2019–2024)
Figure 5.13: Shipments per application area (EU28+2 2018–2024)
Figure 5.14: Installed base per application area (EU28+2 2018–2024)
Figure 5.15: Market overview (North America 2018–2024)
Figure 5.16: Smart home revenues (North America 2018–2024)
Figure 5.17: Market share by whole-home system segment (North America 2019–2024)
Figure 5.18: Shipments per application area (North America 2018–2024)
Figure 5.19: Installed base per application area (North America 2018–2024)

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