Smart homes have only recently become accessible to the public for private consumption. Even with factors such as high installation cost, many people are choosing to adopt certain smart home equipment and functionalities. Competition between leading companies in the smart homes industry is fierce with companies trying to gain market share. As to be expected, 4 of the top 10 global companies are of US origin. However, that does not discount the contribution of the various European players, which include one Irish company; Ingersoll-Rand, PLC. (marketsandmarkets.com1).
The opportunities in the industry are widespread meaning there are many different areas where companies can compete. These include energy saving, assisted living for the elderly, home health systems, entertainment facilities, automated household appliances and government regulation. In this blog post I will discuss some of the largest US companies in the industry.
The combined growth of the market is expected to be huge with predicted revenues reaching 51.77 billion dollars by 2020 (marketsandmarkets.com 1). As previously mentioned, North America holds the largest portion of the market with the greatest adoption of smart homes. Revenues in this segment of the market are expected to reach 22.4 billion by 2020; just over 43% of the total global revenues for this industry (marketsandmarkets.com 2). The leading areas of investment in this sector are energy efficient equipment, the unification and automation of electronic devices, technology to help increase the life of the aging population and government incentive programmes.
Emerson Electric is a technology and engineering company that, among other things, produces smart home technologies ranging from climate control systems, to smart refrigerators. It is one of the largest companies in the smart homes industry. According to their financial reports from last year, Emerson Electric had reported earnings of 404 million dollars in their ‘Commercial and Residential Solutions’ sector (Emerson 1) with a further 716 million dollars in their ‘Climate Technologies’ sector (Emerson 2).
Emerson are at the forefront of smart home innovation, recently just announcing their new ‘Sensi Thermostat’ in January of this year. The ‘Sensi Thermostat’ will allow users to control their thermostat features remotely from their smart phone, tablet or PC (Emerson 3). One of the main selling points of this product for homeowners, apart from its easy installation and convenient Wi-Fi control, is that it retails at a price that is comparable to most of the standard thermostats currently on the market. This is just an example of one of the companies leading technologies.
Creston Electric is another US company that develops smart home technologies and specialises in home and workplace automation. The Crestron 3-Series is an integrated building management platform, capable of unifying the various technologies in the home and allowing them to be operated from a single system; everything from your lighting, music, blinds, security and heating (Creston 1).
These are just two examples of leading technology companies who are dominating in their areas of the industry.
In my next blog post on this topic I will be examining some of the leading European companies in this industry and discuss further the potential growth of the Smart Homes Industry worldwide.
Marketsandmarkets.com 1, accessed on 15/02/2014 http://www.marketsandmarkets.com/Market-Reports/smart-homes-and-assisted-living-advanced-technologie-and-global-market-121.html
Marketsandmarkets.com 2, accessed on 15/02/2014 http://www.marketsandmarkets.com/Market-Reports/americas-smart-homes-market-1292.html
Emerson 1, accessed on 16/02/2014 http://www.emerson.com/en-US/about/investor-relations/emerson-businesses/Pages/Commercial-Residential-Solutions.aspx
Emerson 2, accessed on 16/02/2014 http://www.emerson.com/en-US/about/investor-relations/emerson-businesses/Pages/Climate-Technologies.aspx
Emerson 3, accessed on 16/02/2014 http://www.emersonclimate.com/en-us/About_Us/News/News_Releases/Pages/emerson-announces-new-wi-fi-enabled-thermostat.aspx
Creston 1, accessed on 16/02/2014 http://www.crestron.com/markets/home_theater_and_whole_house_home_automation/