Europe is poised for a growth spurt in home automation over the next four years, with smart home installations tipped to grow at a CAGR of 78% over that time.
Research firm Berg Insight predicts annual installations of new smart home kit in the region will hit 8.1 million in 2017, compared to 500,000 in 2012 and an estimated 700,000 in 2013. Penetration of smart home equipment is tipped to grow from 0.4% in 2012 to 5.9% in 2017 as a result of the rapid growth.
However, the research firm also notes Europe is around three years behind North America in terms of new installations and penetration of smart home equipment. Installations there are tipped to hit 2.3 million in 2013 – a rise of 66% on 2012 – and penetration 3.2%. Berg forecasts installations will hit 12.8 million in 2017, and penetration 16.6%.
Lars Kurkinen, senior analyst at the firm, says installations in both regions are dominated by whole-home services from “new entrants such as Vivint, Comcast, Vera Controls, eQ-3 and SFR.” The services use the smartphone as the primary interface, and are cheaper than previous niche home automation systems.