Industry Competition

Industry Competition Part 2: European Companies

While smart homes are becoming more commercialised in the US, there are a significant number of smart home companies from Europe. By 2020 the expected revenue of the European Smart Home industry is to be $13.81 billion (marketsandmarkets.com1). Some of the companies include Siemens (Germany), Schnieder Electric S.A. (France) and Ingersoll-Rand PLC. (Ireland). The main areas of smart home innovation in Europe include security, entertainment and the increasing level of government regulation. While smart home appliances are available in Europe, the cost of installation is still high and therefore adoption of these appliances to the market are slow.

Siemens are a German company founded in 1947 operating from Munich and Berlin. It is Europe’s largest engineering company. They are involved in developing the centralised management of building systems including light, heat and electricity. In compliance with an EU directive in 2002 to increase the efficiency of buildings Siemens were given certification by the EU to begin producing electric individual zone controllers ( These controllers are able to regulate building systems like heating radiators and cooling systems. These controllers are usually installed in new, large buildings such as shopping centres, stadiums, hotels or leisure centres. Siemens are looking to see how these systems can be implemented on a smaller scale to a wider group of customers.

Schnieder Electric S.A. are also involved in controlling heating and electricity in building through centralized controls. They aim their products towards customers who are environmentally conscious and do not wish to waste electricity. One product that Schnieder Electric make is their solar photovoltaic panels. These are marketed towards residential housing or small businesses. These panels can provide electricity to an entire house, reducing the customer’s electricity bill by 100%.

Ingersoll-Rand PLC is an Irish company established in 1871 who are one of the top providers of smart home systems in Europe (Wikipedia).  Its global headquarters are located in Sword, County Dublin. The company has grown from strength to strength over the years and in 2011 it employed over  52,000 people worldwide (Wikipedia). The company developed Nexia which is a control system that consumers can use to remotely control home appliances ( The product is sold in an app format that individuals can access from any smart phone or tablet. The system even includes the optional use of cameras to be able to view what is going on inside your home at any given time. This product really allows customers to streamline their daily tasks all at the touch of a button.

Eva O’Leary


Marketsandmarkets.com1  accessed on 16/03/2014 at 09:15am accessed on 16/03/2013 at 10:20am accessed on 16/03/2014 at 09:45am

Wikipedia accessed on 16/03/2014 at 10:30am


Introduction to Market competition

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 ( 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 ( 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.

Eva O’Leary



Bibliography: 1, accessed on 15/02/2014 2, accessed on 15/02/2014

Emerson 1, accessed on 16/02/2014

Emerson 2, accessed on 16/02/2014

Emerson 3, accessed on 16/02/2014

Creston 1, accessed on 16/02/2014