Home automation is gaining popularity within the tech world at the same pace as advancements in the internet of things (IoT), according to GlobalData’s Company Filing Analytics platform.
The platform found an increase in the mentions of home automation in the earnings transcripts and filing documents of tech companies from 2016-17 to 2017-18.
This was achieved using machine learning and natural language processing techniques to scan filing documents.
Rising interest in home automation
The findings revealed that the number of companies showing interest in home automation grew by 8.2% in 2017-18. GlobalData said that the total mentions of the term by these companies grew by 22.1% in 2017-18. The increase is consistent with the growth in mentions for IoT.
“Advancements in the field of IoT, which offer a new level of control over home appliances due to the element of interconnectedness spanning devices, continue to be a driving force behind the increase in the adoption of IoT devices in smart homes,” said Vaibhav Khera, director at GlobalData.
“The automated home is now an important sub-segment of the overall IoT market with several tech giants such as Google and Amazon already making headway and others planning to launch home automation products in the near future.”
There are a wide variety of factors fuelling interest in home automation. These include the growing use of smartphones; declining cost of home automation technologies; government policies, concerns over safety and security and increasing awareness in how home automation can reduce energy consumption.
The future of home automation: Companies vie for place in the market
Total spending on home automation devices is expected to increase significantly from US$23bn in 2018 to US$75bn in 2025, according to thematic research by GlobalData.
“With companies across domains vying for a share in the home automation market, the space is becoming increasingly crowded, forcing tech giants to compete with pure-play vendors, besides telecom operators and the manufacturers of electronic gadgets,” Khera added.
“Automated home has a long way to go before it becomes mainstream. Being a nascent market, there are relatively few accepted industry standards and lack of interoperability between products from different manufacturers, which act as the principal barriers to mass adoption. Privacy and data security threats also remain the primary areas of concern.”
GlobalData also found that home automation outperformed tech markets, such as autonomous vehicles, connected cars and wearable tech for growth in the number of total mentions during 2017-2018.