North America to lead home automation market

According to a new report from ABI Research, smart home automation systems are set to grow by 21 percent annually for the next five years. The overall market in 2014 was estimated at $10.8 billion, and is expected to grow to about $34 billion by 2020. ABI predicts that this will be driven by the US market in particular, with North America accounting for about 46 percent of all revenues.

Interestingly, home automation means very different things based on the market. In North America and Europe, integrating security cameras with motion sensors for both indoor and outdoor applications appears to be the most common single use for home automation. Smart plugs that can be controlled by smartphones, and wireless, inexpensive home security devices like contact sensors for windows or doors have also been popular. In China, environmental sensors like air quality monitors are far more popular.

Overall, the report indicates that while systems like Apple's HomeKit or Phillips' Hue adjustable lighting systems may be the future, at present at least home security remains the most common home automation feature in North America and Europe markets. Nevertheless, as protocols like ZigBee and Z-Wave see more and more adoption from makers (ZigBee recently addressed many of its interoperability issues with its 3.0 update) the opportunity is great for many different applications.