HOME > COMPANY > Exclusive Interview with CABA: The Canadian smart home market is driven by Energy Management. In the US, it's driven by growth in the DIY sector
Exclusive Interview with CABA: The Canadian smart home market is driven by Energy Management. In the US, it's driven by growth in the DIY sector
By CABA 2014-11-03
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Continental Automated Buildings Association (CABA) is an international non-profit industry association dedicated to the advancement of intelligent home and building technologies. CABA shares with SMAhome the following figures in regards to the prospective development of the home automation market:

• There will be 700 million connected home devices by 2016, and 2.3 billion by 2020.
• 90 million homes worldwide will employ home automation systems as of 2017.
• The combined household energy management, smart metering, home security, and home entertainment market reach $44 billion in revenues by 2016.

Over 40% of Canadian consumers felt that smart home technologies could provide substantial benefits in terms of household safety and security, energy savings, and remote management of home functionality. CABA expects the demand for energy management in the Canadian market to act as a primary driver for home device installation – or, convergently, for energy management systems and smart metering solutions to come to be viewed as a viable extension to existing home monitoring packages. This may consequently provide opportunities for utility companies to provide energy management as "add-on" to existing home automation services.

In the United States, by contrast, CABA finds that the DIY / a la carte market constituted roughly 60% of the combined home automation market – primarily due to the lower cost and the proliferation of broadband and 3G / 4G wireless cellular networks, which permit end-users to easily adopt device-based home automation functionality on an ad-hoc basis. Connected alternatives to a wide variety of household staples are available from retailers at prices between $100 and $300 USD. CABA projects that the DIY market will grow considerably in the coming years. Presently, the other 40% of the American market is dominated by whole-house installations, which generally cost over $5000 USD, and must be deployed by professional systems installers.

On the subject of the Internet of Things (IoT), CABA notes that figures provided by Gartner, a prominent IT research and consulting company, give that as of 2020, there will be nearly 26 billion connected devices, excluding computers, tablets, and smartphones, which will, as a category, alone reach roughly 7.3 billion units. CABA observes that the IoT can only function as intended if interoperability exists, and thus encourages organizations such as Apple, Google, the Open Interconnect Consortium, and AllJoyn/AllSeen to continue to work toward reliable, intelligible communications.

For the 2015 business year, CABA advises that firms should focus on extending adoption of their products and services beyond the boundaries of their present client demographics. Exploration of new value propositions or pricing options that appeal to unserved markets (the middle class, DIY adopters, and Millennial households). Proactive management of customer lifecycles via segmentation of target markets can provide a better grasp of the needs and value propositions that may drive consumers to explore more extensive adoption of smart home products.

CABA observes that in the past 5 years, Chinese manufacturers have demonstrated the capacity to provide excellent technologies for the home automation market. However, the organization continues to urge Chinese manufacturers to provide greater degrees of product customization for clients – for example, creating multiple variants of the same product to serve different market sectors.


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