Smart Home Installation Services: A Growing Need, Not Just an Amenity
The world is undergoing a digital change as the Internet of Things (IoT) technology grows in popularity, and linked home concepts shift from luxury to mainstream. While the home automation sector continues to grow at a breakneck pace, a growing number of businesses are jumping on board to capitalise on the full potential of smart home businesses. Smart home technology adoption is on the rise around the world, and smart home installation services are projected to become an inextricable part of the home automation ecosystem’s business model soon.
Market Research Store offers analysis on how broader evolutions in home automation are likely to influence the dynamics in the smart home installation services market in its latest offering, which takes into account the astounding upswing in the adoption of cognitive systems and connectivity technologies. This research offers unique and actionable insights into the growth potential for smart home installation service providers in the fast changing world of intelligent and connected houses.
Market Participants Staying Ahead of the Curve in the Smart Home Industry
In 2017, global revenues from smart homes topped US$ 31 billion. Smart home technologies continue to develop, aided by increased acceptance of IoT and Artificial Intelligence (AI), as users seek better access and control. Smart and connected gadgets have seen widespread adoption over the last few years, providing a profitable platform for installation service providers. The sector has reacted quickly, with global revenues more than doubling between 2013 and 2017, surpassing US$ 3 billion in 2018.
As retaining market shares becomes more difficult, the focus has switched to profiting on next-generation connection technologies inherent in today’s smart home gadgets. As manufacturers release new products, such as voice assistants, doorbells, and thermostats, installation service providers must continually upskilling.
Home security concerns are still a major driver of the smart home market, so it’s no surprise that home monitoring and security systems have gained the most traction among the different parts of the smart home ecosystem—entertainment, appliances, metering, and so on. As a result, demand for installing these services accounts for a sizable portion of installation service providers’ bottom lines. Home security and monitoring systems accounted for nearly half of the revenue share of the smart home installation services market in 2018, and this trend is projected to continue.
In addition to these industry-specific advances, the larger push toward smart infrastructure investment is likely to present installation providers with long-term prospects. Governments all throughout the world have pledged to construct future cities that are energy-efficient, secure, and connected. The Indian government, for example, has allocated US$ 14 billion to create 100 smart cities across the country as part of the ‘Smart Cities Mission.’ Government investments have been matched by corporate sector interest; for example, Planet Smart City has invested £27 million in Brazil in conjunction with Habitax.
“During the forecast period, entertainment and other controls will hold the highest share of the smart home market.”
During the projection period, the entertainment and other controls sector is likely to hold the greatest share of the smart home market. The ease afforded by these controllers for managing and controlling entertainment systems within a house is driving the expansion of the audio, volume, and multimedia room control industry. Advancements in wireless communication technologies are a major factor driving the smart home market for entertainment control by enhancing the growth of the home theatre system control industry. The rising demand for smart metres and smoke detectors, as well as the growing popularity of smart plugs, smart hubs, and smart locks, are driving the market expansion of the other controls sector.
“During the projected period, the behavioural type software and services sector will hold a bigger market share.”
The behavioural and proactive types of solutions and services have been sub-segmented in the smart home industry for software and services. Behavioral software and services aid in the analysis of energy-related data and its transmission to end users. However, unlike the proactive type, this group is limited to transmitting and receiving data and does not take intelligent actions. End users receive direct feedback from behavioural type solutions, which include basic information on real-time energy consumption statistics as well as previous data on energy usage. Behavioral type software and services are rapidly being used in smart homes because they help improve energy efficiency and lower energy bills by analysing behavioural type data. Behavioral software and services have the ability to learn user behaviour and, as a result, provide smarter appliance control, resulting in a rise in demand. Because this form of software and algorithm is the most widely used because of its ease of use and low cost, it is predicted to account for a higher part of the smart home market over the forecast period.
Google revealed in August 2020 that it had purchased a share in the alarm business ADT and had negotiated a contract to connect ADT’s installer network to the Google ecosystem of smart home goods. The agreement is likely to benefit Google by getting professional installers into consumers’ homes to resell and install Google products, as well as ADT by providing a more affordable security service.
In 2020, the behavioural category generated the most revenue. Behavioral software and services are increasingly being used in smart homes because they help to improve energy efficiency and reduce energy expenditures by analysing behavioural data.
During the projected period, revenue in the entertainment control category is expected to grow at a high CAGR. Consumer demand for volume and multimedia controls, as well as home theatre system controls, is increasing in emerging countries.
The analysts took into account all of the elements impacting the worldwide and regional growth of the Smart Home market. One of the primary impacting elements of the Smart Home market, according to the report, is the COVID-19 pandemic. The pandemic has hampered market growth by disrupting supply chains and disrupting the market’s economic condition. The total impact of the COVID-19 epidemic on the Smart Home market and its core categories is detailed in this research. The paper also examines the existing and prospective market effects of the COVID-19 pandemic.