Smart Home to Experience Phenomenal Growth

April 21, 2016

By Ernest Worthman

The smart home market has been slow to catch on. Much of that is due to the complexity of the systems and the lack of standard plug and play devices across vendors. There are also issues with disparaging wireless technologies.

But 2016 may see many of these challenges tamed. In fact, Strategy Analysts are seeing the market finally gaining steam and wider acceptance. Much of this is due to the advancements in sensors and interoperability among devices and technologies, as well as integration among the various wireless platforms involved.

SA expects the consumer spending on smart home related hardware, services and installation fees to reach nearly $24B in 2016. With an annual CAGR of 15 percent SA expects that market to be more than $40B by 2020. And, by 2020 52 million US homes (more than 40 percent) will have at least one type of smart system installed.