Home Security Systems at the Forefront of Smart Home Growth

  • Posted on: 19 July 2017
  • By: chw staff

The global smart home M2M market is expected to expand at a rate of 13.3% CAGR between 2017 and 2025 to reach a value of US$16.316 million by 2025 from US$5.421 million in 2016, according to a report by Transparency Market Research.  The report pointed out that the global smart home M2M market remains fragmented.   The market is comprised of many large vendors operating in various industry verticals such as: platform providers, telecommunications operators, chip providers, device manufacturers, and original equipment manufacturers (OEM). Stiff competition characterizes the market.

The swift uptake of smart home security systems is at the forefront of driving growth in the global smart home M2M market. "The traditional systems are mainly operated manually and have several disadvantages. Smart home security systems, with enhanced features such as text message based motion detection notifications, remote monitoring of residential property, and automatic opening of doors and windows when smoke alarm is sounded, helps to overcome those disadvantages. This has helped boost the global smart home M2M market."

Further, the growing applications of smart appliances such as vacuum cleaners washing machines, HVAC systems, kitchen equipment, televisions, lighting systems, and other connected consumer electronics have also served to bolster the smart home M2M market globally. "Such devices are mostly connected to the Wi-Fi system of a home and can be controlled through a smart phone application or via a remote control among other systems. Owing to such advantages, the demand for smart appliances is gaining popularity across different geographic locations," said the lead analyst of the report.

However, concerns over security breaches remains a major hurdle to the global smart home M2M market, another is concern about compatibility issues with legacy systems. However, the continuous advancement in technology, falling prices of semiconductor devices and growing adoption of home automation is expected to create new avenues for growth in the market, states the report.

Depending upon applications, the global smart home M2M market can be divided into energy and climate management, access and security control, home entertainment, and lighting, among others, including M2M technology for connected wellness and smart appliances. At present, the energy and climate management segment dominates with a leading share. In 2016, the segment held over a fourth of the share in the market.

Geographically, North America, South America, Europe, Asia Pacific, and the Middle East and Africa are the key segments of the global smart home M2M market. North America held a share of 35% in 2016. The region's expansion has been driven primarily by the country’s knowledge about the benefits of home automation, widespread availability of different home automation products, concentration of numerous vendors, and easy availability of skilled personnel required for home automation have helped catalyse growth in the North America market.