Smart home popularity on the rise in Europe
Written by NTN staff
There were a total of 22.5 million smart homes in Europe at the end of 2017. The installed base in the region is forecasted to grow to 84 million homes. What will drive this growth?
European market still lags behind North America in terms of market penetration. By the end of 2022 it will reach a market penetration of 35 percent, with an installed base of 84 million homes, according to a new report from Berg Insight. At the same time, Berg estimates that more than 63m homes in North America – the most advanced smart home market - will be smart, a penetration rate of 44%.
Strong market growth is expected to continue in the next five years but what services will account for this growth?
The most popular products on the smart home market include smart thermostats, smart light bulbs, smart security cameras, smart air conditioners, smart door locks, smart plugs and smart speakers. Well-known vendors offering these products include Nest, Signify, Belkin, D-Link, Assa Abloy, Haier, Sonos, Amazon and Google.
In Europe, traditional home automation systems and Do-It-Yourself solutions are more common as whole-home systems. eQ-3, Deutsche Telekom and Verisure are estimated to be the largest vendors of whole-home systems in the region.
Smart speakers with built-in voice assistants have also had a major impact on the smart home industry in 2017–2018. Amazon and Google are the major vendors of such devices, having a combined market share of over 90 percent. Many of the well-known smart home device and system vendors have made their products compatible with Amazon Alexa and Google Assistant in the past year.
In America, by contrast, security systems are the most common reasons fro adopting smart home services.
“Consumers want convenience and a lot of people buy smart home products in order to facilitate their daily lives” says Martin Bäckman, IoT Analyst at Berg Insight. “A major reason why voice-controlled speakers have become so popular is that they simplify the control of smart home devices and enable for people to adjust lighting, temperature, multimedia and more from a unified interface” concluded Mr. Bäckman.