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US Holds Largest Share in Home Automation Market

By 2020, the global home automation market is set to hit $12.6 billion, a hefty leap from 2013’s $5.77 billion. This surge in popularity speaks to how quickly technology and security are becoming allies in business. One of the biggest markets driving this upward profit trend is North America, projecting to nearly double 2013’s $2.21 billion to inflate to $4.29 billion.

The country that has poured the rocket fuel on this industry’s jetpack is the U.S. “The U.S. is the largest market and will continue to play a very influential role in the forecast period in North America,” team leader for MarketsandMarkets Robit Waghadhare reported.

There are two reasons that analysts are predicting such staggering leaps in home automation:

Energy Efficient Solutions

The United States government has made the use of energy efficient products attractive for security system manufacturers, distributors, retailers and commercial and residential real estate owners. With many initiatives to reward green products, the U.S. market is driving this demand and causing countries around the world to follow suit. From smart lighting to smart HVAC units, the energy efficiency demand is only going to become more popular.

Wireless Technologies

Having control of home security remotely is attractive for both residential and commercial property owners and managers. As such, smartphone and tablet based home automation apps is a major contributor to the growth of the home automation market globally. With increasing resources for checking on the status of a property, technologies with with to gather data and send to users is becoming more clever and more diverse.

Forecasting Roadblocks

The rapid growth in this industry brings with it both opportunity and problems. On the technology side, giants like Google, Qualcomm and Intel have all begun producing products for home automation. Having the attention of these tech leaders is certainly good in that there are a variety of product lines and ample evidence that there will be more to come. Diversity in products also means that these proprietary products will not be able to talk to each other, forcing security companies as well as consumers to choose between one company or another.

As green initiatives are the current norm, it is unclear how long these financial breaks will be available. If energy efficient and environmentally friendly solutions become the status quo, these pricier solutions could be a challenge to sell given the heavier price tag yet lacking cost break.


The home automation market is being driven by growing needs for quality, effective and efficient solutions in various domestic applications. These applications include lighting, safety and security, energy management, entertainment and HVAC (heating, ventilation, and air conditioning). For the security industry and in the U.S. in particular, rapid growth into 2020 is exciting news as more options will become available, allowing security companies to serve customers better.



  1. Security System News March Newsletter
  2. Transparency Market Research
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