According to a new technical market research report, Home Automation and Security Technologies, Products, and Markets, the U.S. market for home automation and security technologies generated $2.3 billion in 2008 and an estimated $2.5 billion in 2009. This will increase to $8.1 billion in 2014, for a compound annual growth rate (CAGR) of 26.5%.
The market is broken down into segments of lighting, home entertainment and security, and heating, ventilation and air conditioning (HVAC) and energy management. The lighting, home entertainment and security segment has the largest share of the market, worth an estimated $1.3 billion in 2009. This is expected to reach $2.6 billion in 2014, for a CAGR of 14.1%.
The HVAC and energy management segment currently has the second largest share of the market currently, worth $998.3 million in 2008 and an estimated $1.1 billion in 2009. This should increase at a CAGR of 36.6% to reach $5.5 billion in 2014.
Home automation technology has been around for some time but has only recently begun to enter the mainstream. Reasons for home automationÕs growing popularity include developments on the demand side as well as the supply side.
On the demand side, rising incomes and standards of living have combined with increased concerns about energy and security to increase the attractiveness of technologies that promise to enhance the ownerÕs quality of life, while making the most efficient use of energy (especially electricity) and providing a sense of security.
On the supply side, the declining cost and complexity of new home automation products is helping to attract new buyers. Until a few years ago, the cost of quality home automation components was prohibitive for all but the enthusiast market, but prices are dropping.