The Australian smart-home automation market is set to reach almost $1 billion by 2017 making the connected home a reality for many Australians.
A new study from the technology analyst firm Telsyte has revealed the home automation market will generate $160 million in device revenues in 2014.
This is expected to grow to $917 million by 2017.
Telsyte analysts believe the arrival of new, affordable DIY smart home automation products will make ‘the Internet-of-Things at home’ a reality for many Australian consumers over the next few years.
Analysts believe there is a groundswell of pent-up demand for home automation products that work easily with Wi-Fi in the household.
The study reveals that energy management, lower cost devices, and unobtrusive wireless DIY installations are key drivers for the adoption of smart home automation systems.
"The Australian smart home automation market will evolve through a number of stages over the next decade," the report said.
"Within two years, there will be a significant opportunity to unify the large installed base of disparately connected devices under a master control system.
"Telsyte defines the master control system as a “smart home hub”. This hub will give service providers an opportunity to generate annuity and subscription revenue, such as security monitoring."
The report has has determined that smart home automation systems are appealing to mainstream buyers, regardless of house type (house or apartment), ownership type (renters or owners), and house age.
“Home owners are also positive about home automation with the majority of survey respondents believing that home automation systems can increase the value of homes,” the report said.
“The successful centrepiece of home automation enablement will be a multi-purpose, multi-connected hub that is standards-based and manufacturer agnostic.”
Telsyte senior research manager Sam Yip said these hubs would be controllable and programmable via the Cloud and mobile computing devices such as tablets and smartphones.
“Telsyte expected that by 2017, smart hubs – connectors for disparate networked devices – will be the largest segment of the smart home with nearly 40 per cent of the total market value,” he said.
Smart light bulbs, home wireless sensors, smart security, smart gardening and connected home hubs will lead the way for the automated home, according to the report.
The independent study is based on interviews with key market participants and a survey of a representative sample of 1,018 consumers conducted in late 2013.