San Diego, CA, U.S.A. --- (METERING.COM) --- February 7, 2008 - Driven by emerging standards, increasing energy costs and advances with wireless sensor networking (WSN), the “smart home” is becoming a reality for the mass market, according to recent research from ON World.
By 2012 there are expected to be around 14 million WSN households worldwide in a market worth US$2.8 billion – up from US$470 million in 2007. While North America has the lion's share of the smart home market today, major growth is expected in Europe and the Asia Pacific, with for example Europe's WSN smart home revenues projected to increase by 52 percent compound annual growth rate to 2012.
In 2007 there were almost 100 companies developing WSN smart home products and new entrants are increasing. The number of wireless smart home products, more than 200 currently, is increasing by 20-30 percent per quarter. In addition established service providers such as AT&T and SK Telecom are starting to offer WSN-based home monitoring services.
ON World projects that more than one-third of the professional installer market will be wireless in five years, up from 15 percent today. For professional installers, WSN provides an opportunity to broaden their customer base to include middle income households as well to sell them home monitoring services. Thus the professional installer segment will still make up the majority of wireless smart home revenues over the next five years and more than 39 percent of the units shipped.
Over that period the mass market segment will grow at a much higher rate, however, from 25 percent of units shipped in 2007 to almost 61 percent in 2012.
The growth of the smart home market is largely attributed to the success of wireless mesh networking protocols such as ZigBee and Z-Wave and the industry alliances that were formed to promote each of these. By 2012 more than 88 percent of WSN units sold are expected to be standards-based.
In that time lighting control and automation – as it is now – will be the largest solution, making up nearly half of the units shipped in 2012, while rapidly growing markets will be energy management/HVAC, entertainment control and home health.
ON World’s survey, “WSN for smart homes” was based on interviews with more than 100 home installers, vendors and suppliers.