The exponential rise in the adoption of smart home products in the past few years has been aided by the vast set of services, products, and technologies already available in the market and a multitude of them in the pipeline. What has also fostered the uptake of smart home products across the globe is the increasing consumer understanding about the use of connected devices in more effectively managing the energy consumption of a household at the basic level and of larger geographical spaces on a broader level.
However, the high base cost of smart home products and the additional cost involved in installation and management of smart home systems limit their uptake to mostly developed economies across North America and Europe. Transparency Market Research (TMR) estimates that the global market for smart home as a service will exhibit an exponential 18.1% CAGR from 2017 through 2025. Emerging economies across Asia Pacific are also expected to ramp up their appetite for technologically advanced smart home products owing to rising disposable incomes and an increasing understanding of the need for energy conservation.
In this blog post, TMR analysts highlight some of the key aspects of the global market for smart-home-as-a-service as it embarks upon an excellent growth path:
What continues to drives the market?
The high returns possible to an economy in terms of energy savings and increased concerns regarding safety of households are the key factors that continue to drive the market for smart home as a service. The market is also significantly benefitting from the increasing number of companies entering the smart home space. Innovative solutions from new entrants will add significant value to the overall development of the market in the long run.
Presently, the market is exhibiting a high growth rate also due to consistent government funds and awareness initiatives. The possibility of vast energy savings have made smart home initiatives a high priority for government bodies, especially across emerging economies where energy demand is much higher than the supply.
Browse The Press Release : http://www.transparencymarketresearch.com/pressrelease/smart-home-as-a-service-market.htm
How has the competitive landscape of the market evolved over the years?
The market has witnessed the entry of a vast number of players in the past few years, rendering the vendor landscape highly competitive. The presence of highly innovative vendors in the market is leading to the increasing availability of new and enhanced product varieties. The high rate of technological developments means that technologies are becoming obsolete at a rapid pace and are being replaced with more effective and futuristic ones in no time.
In the next few years, however, the need for considerable investment in CAPEX and IT infrastructure to enjoy a sizeable share in the market will lead to increased barriers to the entry of new vendors. As a result, the competition in the market will become fiercer over the next few years.