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Capturing Middle-Income Buyers: The New Sweet Spot for Smart Home Sales

November 04, 2014

Skeptical integrators believe the mid-level market for home automation is all going to go DIY, with homeowners opting for apps that that give them silos of home control but not real integrated home automation.

But according to data from Parks Associates, money spent on home automation services, that is installation, monitoring and maintenance, is expected to nearly triple from 2012 to 2017. In all the data reveals that an estimated $30.5 billion (that’s billion with a “b”) will be spent on home automation services in 2017 compared to $8.1 billion spent in 2012.

To be exact, that is a 276 percent growth rate. At the same time, the amount spent on hardware is expected to grow from $13.7 billion to $41.3 billion. Overall, the combined home automation hardware and services revenues are expected to have a compounded annual growth rate (CAGR) of 27 percent per year.

So much for just DIY only.

From the article "Capturing Middle-Income Buyers: The New Sweet Spot for Smart Home Sales" by Jason Knott.

Previously In The News

Uncovering Video Surveillance, Home Automation Trends

Homeowners want security systems installed to protect the family and safeguard the house. For an installer, that can be a springboard to more sales by incorporating home automation features into th...

Top 9 Smart Home Devices for Middle-Income Buyers

While the high-end of the market is driven by audio, video and control, the middle-income buyer appears to be driven more by security-related devices. According to data Parks Associates in a su...

JJ Changes Tune: Smart Bulbs Not So Stupid After All

Smart bulbs have always seemed like a dumb idea to me: Pay $60 to $100 for a screw-in LED and then control it with your phone. That’s a lot of money for a single light vs. a switch that can control...

Electric Utilities Lose Relevance in Smart Home Market

One final point: In the U.S., energy is cheap. Utilities’ efforts to save customers a few bucks per month just won’t fly. In a home automation panel discussion at the recent Parks Associates Co...

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