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Home Automation Market Report – UK 2015-2019 Analysis

  • February 2015
  • -
  • AMA Research
  • -
  • 77 pages

AMA Research are pleased to announce the publication of the 2nd edition of the 'Home Automation Market Report - UK 2015-2019 Analysis', which provides an overall analysis of the market and forecasts for future opportunities within the sector. It includes comment on future prospects and implications for all companies involved in home automation technologies, including manufacturers and suppliers of related systems. Key issues analysed:

• Detailed analysis of key trends and demand for home automation systems.


• Key technological trends influencing market development.


• Detailed analysis if key product sectors - access and security control, climate control, lighting control, home entertainment systems and others (communication systems, home health monitoring etc.).


• Assessment of the supply side of the market and a detailed analysis of the leading home automation systems manufacturers, suppliers and distributors.

Although home automation systems have been available in the UK for many years, it is only recently that they have moved away from an upper market niche into a more mainstream market. Elements included in home automation can include access & security controls, climate control, lighting and shading controls, home entertainment systems and communication systems.

The home automation market has continued to experience good growth 2013-14. The market is currently considered to be in the initial growth stage, supported by 83% growth 2010-14 and which is currently forecast to continue into the medium-term, with market value forecast to double again by 2019.

Areas of particular interest include:

• Market performance in 2013-14 - review of growth prospects and key market drivers to 2019.


• UK home automation market is complex and highly fragmented, with a large number of suppliers including manufacturers, resellers, installers and distributors.


• Impact of wireless technology has been a key driver for the retrofit market.


• Home automation systems are increasingly been used in the new house build sector.


• Adoption of 'app' driven controls has meant that consumers are now using familiar systems to access and change elements of home automation systems.


• Concerns about home energy efficiency driving the market for smart heating controls.


• Advent of audio visual streaming services has transformed the home entertainment sector and also made the installation process much easier.


Key Companies included:

ABB, ACA-Apex , Adapt Controls, Aldous Systems (Europe), AMX, Armour Home Electronics, Ashway Smart Homes, Audio 7, Audiovision, AWE Europe, Azro, Barix AG, BitWise Controls, Came UK, Carlo Gavazzi, Cloud9 systems, Control4, Convergent Home Technologies (CHT), Cooper Controls, Crestron, Cytech Technology, Digital Future Solutions, Elan Home Systems, Embedded Automation, Futronix, Gira, Globe Cache, Home Automation Inc (HAI), Home Security Systems, HomeSeer Technologies, Honeywell, Inrom, Invision UK, IQYourHome.com, Ivory Egg UK, JSJS Designs (Europe), Laser Business Systems, Loxone Electronics, Lutron EA, Maplin Electronics, Marmiteck, MidwichHome, Niko, Noxel, NuVo Technologies, Opus Technologies, Philips Dynalite, Promoveo Technology, Q-bus, Rako Controls, Reverberate, RGB Communications, Riva Entertainment, Russound, Savant, Secant, Sensible Heat, Siemens, Square D, Teletask, The Complete Home Control Group, Think Simple, URC, USD, Vantage, Vivint Inc, Xantech, Z-wave Products UK.

Key areas covered in the report include:

HOME AUTOMATION MARKET OVERVIEW

• Market definition - size and value 2010-2014 and future prospects to 2019.


• Market structure.


• Technologies used – home networks, hardwired and wireless, system protocols – advantages and disadvantages, proprietary systems vs. standardised.


• Key influencing factors - social and demographic change, housebuilding, consumer confidence, technological innovations, environmental considerations etc.


• Future prospects to 2019 - key market drivers - technological influences etc.


MARKET SIZE, TRENDS AND INFLUENCES

• Home automation market – background, definition, components used, key advantages and disadvantages, market penetration, pricing trends, move towards mainstream systems, mix by type of installation etc.


• Key trends by application sector –access and security control, climate control (heating and ventilation), lighting control, home entertainment systems, communication systems, home health monitoring, other home systems.


• Environmental concerns – including building regulations and legislation, energy savings, impact of smart meters, development of smart grid, use with renewables etc.


• Technological influences - including internet access trends, super-fast broadband coverage, mobile internet usage, tablet computers, home automation apps, cloud-based systems, touch panel controls, home automation packages, third party products, future developments etc.


• Housing market – including housing completions – overall and by dwelling type, use in new homes, second residences, RMI activity, self build sector etc.


• Demographic factors – ageing population, growing number of people with special needs, independent living etc.


SUPPLIER TRENDS AND DISTRIBUTION

• Market positioning of leading UK home automation suppliers.


• Review and analysis of leading home automation suppliers, including company profile, turnover, key products etc.


• Distribution – including overall structure and market mix by channel.


• Specialist suppliers – home automation distributors and specialist dealers.


• Other suppliers – direct from manufacturer, internet sales, non-specialist retailers, electrical wholesalers, utilities.

The principle behind home automation systems is the linking of electrical/electronic devices to provide increased whole house controllability either through a single control panel or single control device for each element. Although home automation systems have been available in the UK for many years, it is only recently that they have moved away from an upper market niche into a more mainstream market.

Elements included in home automation can include access & security controls, climate control, lighting and shading controls, home entertainment systems and communication systems. The home automation market has continued to experience good growth 2013-14. The market is currently considered to be in the initial growth stage, supported by 83% growth 2010-14 and which is currently forecast to continue into the medium-term, with market value forecast to double again by 2019.

Technological advances driving the home automation market include the progress of wireless controls and LED lighting, but also include the widening market for connected audio and visual content via home networks. Also contributing to growth has been the adoption of “app” driven control interface, which has increased the perception of how user-friendly some home automation systems can be.

Remote control of the system has also been a key driver for growth as the householder is increasingly able to control all aspects of the connected home from within the home, at work or even abroad via smartphones, tablets, etc. The offering of modular systems which offer the opportunity of future expansion has also driven growth.

In addition, the development of systems aimed at the experienced DIYer has meant that the average price of an entry level system has become more affordable and placed home automation systems within the scope of a much wider, appreciative audience.

Increasing focus on domestic energy efficiency has also been beneficial, with development of smart heating and hot water controls that allow more flexibility than traditional heating controls. Take up of wireless routers/internet has also benefited the home automation market, with increasing numbers of suppliers offering wireless systems based around the home WiFi network.

Growth of wireless systems has also resulted in lower installation costs and less complexity of the installation. The home automation market has benefited from the rapid uptake of internet access and use of internet enabled devices in a number of ways. Greater awareness of the capabilities of home networks – e.g. internet on TV – has meant that homeowners now appear to be more accepting of other technologies that could also be run using the home network.

Rapid uptake of smartphones and tablet computers has meant that consumers are increasingly aware and able to use “app” driven software, internet access, etc. Many suppliers of home automation systems have embraced these developments and introduced control panels/interfaces with icons that resemble smartphone/tablet controls, which are deemed to be more user friendly than some of those previously used.

The UK home automation market is dominated by a number of global suppliers with significant experience of more developed home automation markets than in the UK – eg USA and Europe. However, the growth of home automation systems in the UK has seen a number of smaller suppliers and re-sellers enter the market. In addition, wireless connectivity has also encouraged larger global lighting, electronics and heating controls groups to release products that can easily be incorporated into a home automation systems.

Medium-term prospects for home automation remain positive with 98% growth currently forecast to 2019, with market value of around £210m.

Recovery in the housebuilding sector will encourage use of home automation systems, particularly under the Zero Carbon Homes Standard. Recent growth of intelligent heating controls is likely to continue into the medium-term, with rapid innovation likely to be the key driver. The roll out of the Smart Meters programme is likely to mean that householders will have more direct information regarding energy use in the home and could invest in connected controls in order to obtain optimum energy efficiency.

Micro-generation is also likely to provide a key driver for growth in future years, with power hungry appliances likely to be set to turn on only when power is being generated or when cheaper tariffs are available. Forecast growth of “the internet of everything” is likely to result in increased connectivity within home networks and include more intelligent appliances such as cooking, refrigeration and washing, etc.

Recent innovations in streaming of audio visual content is likely to lead to multi-room systems increasingly becoming the norm, adding further opportunities for home automation systems. The lighting controls sector has been transformed by the advent of LED technologies in recent years, which are likely to continue to develop into the medium-term resulting in increased applications.

As the market evolves, more manufacturers and suppliers will be tempted into the UK market resulting in downward pressure on average prices. Development of wireless technologies is likely to drive the retrofit market as installations become easier and less invasive.

Comparisons with other regions where the home automation market is more developed indicate that there is significant growth potential in future years. However, the rate of uptake will be influenced by a number of factors including rates of disposable income, the extent that home automation systems are adopted by mainstream housebuilding organisations and, perhaps most importantly, the perception by householders of how much value the system will adds to the property when set against more visible home improvements, such as conservatories.

Table Of Contents

Home Automation Market Report - UK 2015-2019 Analysis

1.
INTRODUCTION 6
1.1 BACKGROUND 6
1.2 SOURCES OF INFORMATION 6
2. SUMMARY and FUTURE PROSPECTS 8
2.1 SUMMARY 8
2.2 FUTURE PROSPECTS 10
3. ECONOMIC ENVIRONMENT 11
3.1 GDP 11
3.2 INFLATION and INTEREST RATES 12
3.3 UNEMPLOYMENT 13
3.4 HOUSEHOLD CONSUMPTION 14
3.5 HOUSING and CONSTRUCTION 14
3.6 STERLING 16
3.7 POPULATION PROFILE 17
3.8 CONCLUSIONS 17
4. UK MARKET FOR HOME AUTOMATION 19
4.1 DEFINITION 19
4.1.1 Systems 19
4.1.2 Advantages of Home Automation Systems 20
4.2 MARKET SIZE 23
4.2.1 Mix by Value 26
4.3 MIX BY INSTALLATION TYPE 27
4.4 MARKET DRIVERS AND INFLUENCES 28
4.4.1 Environmental Influences 28
4.4.2 Technological Influences 31
4.4.3 Housing Market 35
4.4.4 Demographic Factors 41
5. PRODUCTS 42
5.1 TECHNOLOGIES 42
5.2 APPLICATION AREAS 43
5.2.1 Access and Security Control 44
5.2.2 Climate Control 46
5.2.3 Lighting Controls 50
5.2.4 Home Entertainment Systems 52
5.2.5 Communication Systems 54
5.2.6 Home Health 54
5.2.7 Other Systems 55
6. SUPPLIERS 56
6.1 SUPPLY OVERVIEW 56
6.2 KEY COMPANY PROFILES 57
6.3 OTHER SUPPLIERS 61
7. DISTRIBUTION 65
7.1 DISTRIBUTION STRUCTURE 65
7.2 DISTRIBUTION CHANNELS 67
7.3 HOME AUTOMATION SPECIALISTS 67
7.3.1 Distributors 68
7.3.2 Installers 70
7.4 DIRECT SALES / INTERNET 72
7.5 NON-SPECIALISTS 72
7.5.1 Electrical Wholesalers 73
7.5.2 Plumbers Merchants 74
7.5.3 Electrical/Electronic Retailers 75
7.5.4 Multiple Retailers 76
7.5.5 Utilities Companies 77

CHART 1
UK HOME AUTOMATION MARKET FORECASTS 2010 - 2019 - BY VALUE (£M DSP) 8
TABLE 2 GDP DATA - 2012-2014 - KEY CONSTITUENT ELEMENTS 11
CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 2000-2019 13
CHART 4 PDI and SAVINGS RATIO AT CURRENT PRICES 2000-2019 14
TABLE 5 EXCHANGE RATE FLUCTUATIONS 2009-2015 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16
CHART 6 KEY ADVANTAGES OF HOME AUTOMATION 21
TABLE 7 UK HOME AUTOMATION MARKET SIZE AND FORECASTS 2010 - 2019 - BY VALUE (£M DSP) 24
CHART 8 HOME AUTOMATION MARKET - PRODUCT MIX (COMPONENTS, INSTALLATION/SETUP COSTS) - % VALUE MIX 2014 26
CHART 9 HOME AUTOMATION MARKET - RESIDENTIAL / NON-RESIDENTIAL -% MIX BY TYPE OF INSTALLATION 2014 27
CHART 10 INSTALLATIONS OF SMART METERS INTO DOMESTIC PROPERTIES BY LARGER ENERGY SUPPLIERS Q3 2012 - Q3 2014 - BY VOLUME (NUMBER OF METERS) 30
CHART 11 UK HOUSEHOLDS WITH INTERNET ACCESS 2008 - 2014 % OF HOUSEHOLDS 32
CHART 12 TAKE UP OF INTERNET ENABLED DEVICES 2012 - 2014 - % OF HOUSEHOLD OWNING DEVICES (LAPTOP, SMARTPHONE, TABLET, SMART TV ETC) 33
TABLE 13 UK HOUSEBUILDING COMPLETIONS (GB)2009 - 2018 BY VOLUME (‘000 DWELLINGS) 35
CHART 14 HOUSEBUILDING COMPLETIONS IN ENGLAND BY TYPE OF DWELLING (HOUSES AND FLATS) 2008 - 2014 - % BY TYPE 36
TABLE 15 UK RESIDENTIAL PROPERTY TRANSACTIONS VALUED AT £40K OR ABOVE 2008 TO H1 2014 - VOLUME (000'S) 38
CHART 16 SECOND HOMES OWNED/RENTED BY HOUSEHOLDS IN ENGLAND 2008 - 2013 - NUMBER OF SECOND HOMES (000'S) 39
TABLE 17 UK SELF BUILD MARKET 2008 - 2016 - BY VOLUME (000'S) 40
CHART 18 UK POPULATION 65+ MID-YEAR PROJECTIONS 2001, 2013 AND 2035 (MILLIONS) 41
TABLE 19 UK INTRUDER ALARM MARKET 2009 2014 (£M AT END-USER PRICES) 44
TABLE 20 UK DOMESTIC HEATING CONTROLS MARKET 2009 - 2015 - BY VALUE (£M MSP) 47
CHART 21 UK DOMESTIC HEATING CONTROLS - % VALUE SHARE BY TYPE 2013 (PROGRAMMERS, THERMOSTATS, THERMOSTATIC RADIATOR VALVES ETC) 48
TABLE 22 UK LIGHTING CONTROLS and COMPONENTS MARKET 2009 - 2015 - BY VALUE (£M MSP) 50
TABLE 23 UK HOME AUTOMATION MARKET - KEY SUPPLIERS - % MARKET SHARE 2014 56
CHART 24 DISTRIBUTION CHANNEL STRUCTURE FOR HOME AUTOMATION SYSTEMS 66
CHART 25 UK HOME AUTOMATION MARKET - DISTRIBUTION CHANNELS (SPECIALISTS, DIRECT, OTHERS) - % SHARE 2014 67
CHART 26 UK ELECTRICAL WHOLESALE MARKET 2014 - % BY VALUE (REXEL, EDMUNDSON, CEF ETC.) 73

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