Sample_report_FYSGLOBAL

European Renovation
Wave Strategy Drives

Demand for Home
Automation Systems
(HAS) Market, 2027
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F u t u re G ro w t h Po te n t i a l
E n e rg i ze d b y I n n o vat i ve
ISI Markets
Business Models and
S u s t a i n a b i l i t y - d r i ve n
Va l u e - a d d e d O f fe r i n g s
Global Energy & Environment

Research Team at Frost & Sullivan
The Growth Pipeline™ Company MFD8-19

Powering clients towards a future shaped by growth March 2021
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Contents
Section Slide Number

Strategic Imperatives 7
 Why Is It Increasingly Difficult to Grow? 8
 The Strategic Imperative 8™ 9
 The Impact of the Top Three Strategic Imperatives on the Home Automation Systems Market 10

 Growth Opportunities Fuel the Growth Pipeline Engine™ 11
Growth Opportunity Analysis, Home Automation Systems Market 12
ISI Markets
 Home Automation Systems Market, Scope of Analysis 13
 Product Segmentation 14
 Key Growth Metrics for Home Automation Systems Market 15
 Distribution Channels for Home Automation Systems Market 16
 Growth Drivers for Home Automation Systems Market 17
 Growth Restraints for Home Automation Systems Market 18
 Forecast Assumptions, Home Automation Systems Market 19
 Revenue Forecast, Home Automation Systems Market 20
 Revenue Forecast by Countries, Home Automation Systems Market 21
 Revenue Forecast Analysis, Home Automation Systems Market Market 22

MFD8-19 2
Contents (continued)

 Revenue Forecast by Product, Home Automation Systems Market 23
 Revenue Forecast by End-user Vertical, Home Automation Systems Market 24
 Revenue Forecast Analysis by End-user Vertical, Home Automation Systems Market 25
 Pricing Trends, Home Automation Systems Market 26
Competitive Environment, Home Automation Systems Market 27


 Revenue Share, Home Automation Systems Market 28

 Revenue Share Analysis, Home Automation Systems Market 29
ISI Markets
Growth Opportunity Analysis, Home Automation Systems Market, UK 30
 Key Growth Metrics for Home Automation Systems Market, UK 31
 Revenue Forecast for Home Automation Systems Market, UK 32
 Revenue Forecast by Product for Home Automation Systems Market, UK 33
 Revenue Forecast Analysis for Home Automation Systems Market, UK 34
Growth Opportunity Analysis, Home Automation Systems Market, Germany 35
 Key Growth Metrics for Home Automation Systems Market, Germany 36
 Revenue Forecast for Home Automation Systems Market, Germany 37
 Revenue Forecast by Product for Home Automation Systems Market, Germany 38
 Revenue Forecast Analysis by Product for Home Automation Systems Market, Germany 39

MFD8-19 3

Growth Opportunity Analysis, Home Automation Systems Market, France 40
 Key Growth Metrics for Home Automation Systems Market, France 41
 Revenue Forecast for Home Automation Systems Market, France 42
 Revenue Forecast by Product for Home Automation Systems Market, France 43

 Revenue Forecast Analysis by Product for Home Automation Systems Market, France 44
Growth Opportunity Analysis, Home Automation Systems Market, Spain 45
ISI Markets
 Key Growth Metrics for Home Automation Systems Market, Spain 46
 Revenue Forecast for Home Automation Systems Market, Spain 47
 Revenue Forecast by Product for Home Automation Systems Market, Spain 48
 Revenue Forecast Analysis by Product for Home Automation Systems Market, Spain 49
Growth Opportunity Analysis, Home Automation Systems Market, Italy 50
 Key Growth Metrics for Home Automation Systems Market, Italy 51
 Revenue Forecast for Home Automation Systems Market, Italy 52
 Revenue Forecast by Product for Home Automation Systems Market, Italy 53
 Revenue Forecast Analysis by Product for Home Automation Systems Market, Italy 54

MFD8-19 4

Growth Opportunity Analysis, Home Automation Systems Market, Poland 55
 Key Growth Metrics for Home Automation Systems Market, Poland 56
 Revenue Forecast for Home Automation Systems Market, Poland 57
 Revenue Forecast by Product for Home Automation Systems Market, Poland 58

 Revenue Forecast Analysis by Product for Home Automation Systems Market, Poland 59
Growth Opportunity Analysis, Home Automation Systems Market, Benelux 60
ISI Markets
 Key Growth Metrics for Home Automation Systems Market, Benelux 61
 Revenue Forecast for Home Automation Systems Market, Benelux 62
 Revenue Forecast by Product for Home Automation Systems Market, Benelux 63
 Revenue Forecast Analysis by Product for Home Automation Systems Market, Benelux 64
Growth Opportunity Analysis, Home Automation Systems Market, Nordics 65
 Key Growth Metrics for Home Automation Systems Market, Nordics 66
 Revenue Forecast for Home Automation Systems Market, Nordics 67
 Revenue Forecast by Product for Home Automation Systems Market, Nordics 68
 Revenue Forecast Analysis by Product for Home Automation Systems Market, Nordics 69

MFD8-19 5

Growth Opportunity Analysis, Home Automation Systems Market, Rest of Europe 70
 Key Growth Metrics for Home Automation Systems Market, Rest of Europe 71
 Revenue Forecast for Home Automation Systems Market, Rest of Europe 72
 Revenue Forecast by Product for Home Automation Systems Market, Rest of Europe 73
 Revenue Forecast Analysis by Product for Home Automation Systems Market, Rest of Europe 74

Growth Opportunity Universe, Home Automation Systems Market 75
 Growth Opportunity 1—Leverage European Renovation Wave Strategy to Drive Demand for
76
ISI Markets
Home Automation Systems Markets, 2021–2027
 Growth Opportunity 2—Combine Indoor Air Quality (IAQ) Products with Home Automation
78
Systems Market to Create Product Attractiveness, 2021–2027
 Growth Opportunity 3—Offer Flexible Payment Model to Ease the Financial Pressure of Home
80
Owners, 2021–2027
 Growth Opportunity 4—Partner with Suitable DIY Mid-Segment Smart Home Players to Add
82
Value to Existing Offerings, 2021–2027
Next Steps 84
 Your Next Steps 85
 Why Frost, Why Now? 86
 List of Exhibits 87
 Legal Disclaimer 90
Author: Anirudh Bhaskaran
MFD8-19 6
ISI Markets
Strategic Imperatives

MFD8-19 7
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™: Factors Creating Pressure on Growth

ISI Markets
Source: Frost & Sullivan

MFD8-19 8
The Strategic Imperative 8™
Innovative Business Customer Value Chain Transformative Mega

Internal Challenges
Models Compression Trends
A new revenue model that Customer value chain Global forces that define the The internal organizational
defines how a company compression as a result of future world with their far- behaviors that prevent a
creates and capitalizes advanced technologies, reaching impact on business, company from making
economic value, typically internet platforms, and other societies, economies, cultures, required changes

impacting its value direct-to-consumer models and personal lives
proposition, product offering, that enables reduction in
operational strategies, and friction and the number of
ISI Markets
brand positioning steps in customer journeys
Competitive Intensity Geopolitical Chaos Disruptive Technologies Industry Convergence
A new wave of competition Chaos and disorder arising New, disruptive technologies Collaboration between
from start-ups and digital from political discord, natural that are displacing the old, and previously disparate industries
business models that calamities, pandemics, and significantly altering the way to deliver on whitespace
challenge the standing social unrest that impact consumers, industries, or cross-industry growth
conventions of the past, global trade, collaboration, businesses operate opportunities
compelling established and business security
industries to re-think their
competitive stance

MFD8-19 9
The Impact of the Top Three Strategic Imperatives on the Home
Automation Systems Market
SI8
Innovative Business Models Competitive Intensity Industry Convergence

• DIY smart home products witnessed accelerated • Major professional home automation
growth in the last 5 years because of low price or companies are also electrical product
• Professional home automation providers need
affordability. DIY is now a huge threat to custom companies that carry out electrical installation
to move away from the fixed cost offerings and
or professional home automation products of newly built house. Custom home
adopt subscription-based business model that
ISI Markets
which are generally expensive and complex to automation products require trained installers
allows customers to make monthly or annual
Why
install or use. with electrical knowledge. This creates

payments for Home Automation Systems (HAS).
greater opportunities to partner with real
This model would ease the financial pressure on • Acquisitions or partnerships with DIY mid-market estate and property developers and serve as a
customers. participants could help top-end participants offer separate distribution channel for newly built
value-addition and competitive pricing. house.
• The post-pandemic environment is the perfect • Legrand’s acquisition of Netatmo and Nice’s • Over the last 2 years, real estate and green
time to execute the business model as acquisition of Fibaro took place two years ago building developers have been positioning
consumers would appreciate it; this will and helped gain customer base and offer smart home products as value-added
certainly improve customer churn rate for value-added offerings. offerings to new home buyers. However, the
When
home automation installers and value-added pandemic has deeply affected the
resellers. • Frost & Sullivan expects more partnerships or construction market which is expected to
acquisitions between DIY mid-market smart rebound by the second half of 2022 and
• The major shift toward subscription model will home players and professional home automation ensure positive market growth conditions for
happen over the next 2 to 3 years. players in the next 3 to 5 years. home automation systems.

MFD8-19 10
Growth Opportunities Fuel the Growth Pipeline Engine™
The Innovation GeneratorTM The Growth Pipeline EngineTM

ISI Markets
Perspectives
Analytical

MFD8-19 11
Growth Opportunity Analysis, Home
ISI Markets

MFD8-19 12
Home Automation Systems Market, Scope of Analysis
Scope
Geographic Coverage Europe
Study Period 2017–2027
Base Year 2020

Forecast Period 2021–2027
ISI Markets
Monetary Unit US Dollars
• A Home Automation Systems (HAS) is a centralized system that controls and automates two or more home functions, thereby
providing an assisted and connected living environment to end users.
• The scope of the study includes only the monitoring and controller units, user interface devices and associated software that are
integrated to the indoor lighting equipment, entertainment systems, windows, blinds, shutters, and indoor climate control systems.
However, the market size and forecast of this study does not include the products and appliances that are controlled by a Home
Automation Systems.
• The Home Automation Systems considered for this study includes only the products that requires professional installation and does not
include do-it-yourself (DIY) sensors, smart thermostats, smart speakers, and so on. However, Frost & Sullivan has included those
products in a separate smart home research where we see home automation under a complete ecosystem of smart homes.
• The HAS market is categorized into two end-user segments: Mainstream and luxury. These segments are discussed only for Europe and
not other countries mentioned in this report.

MFD8-19 13
Product Segmentation
Home Automation
Products

Entertainment Window/Shutter/Blind
Lighting Indoor Climate Control
Control Control
ISI Markets
Lighting includes indoor Indoor climate control Entertainment includes Window/shutter/blind control
lighting control products includes HVAC automation multiroom audio controller, includes blind actuators,
including sensors, lighting components such as fan coil audio/video control drapery control system, roof
controller units, user actuators, room climate presentation systems, window automation, shutter
interfaces, and software that controller units, room switching solution, control units that are part of the
are part of the professional temperature controllers that source-to-display solution professional installation.
installation. are part of the professional that are part of the
installation. professional installation.

MFD8-19 14
Key Growth Metrics for Home Automation Systems Market
Home Automation Systems Market: Key Growth Metrics, Europe, 2020
Revenue for Last Year Base Year Growth

Life Cycle Stage Revenue of Study Period Rate
(0.5%)

High $495.3 M $1,504.7 M
Growth
(2020) (2027)
ISI Markets
Compound Annual Number of Degree of
Concentration
Growth Rate Competitors Technical Change
17.2% 100+ 7 43.7%

(active competitors in 2020
with revenue greater than (Revenue share held by top 6
(2020–2027) (scale:1 [low] to 10 [high])
$4.0 million) companies)
Note: All figures are rounded. The base year is 2020. Source: Frost & Sullivan

MFD8-19 15
Distribution Channels for Home Automation Systems Market
Home Automation Systems Market: Distribution Channel Analysis, Europe, 2020
Home Automation
Systems Market
Manufacturers
70.0% 13.0% 17.0%

Dealers/Distributors Direct Sales Retailers
ISI Markets
Installers/Value-added
Resellers
End User

MFD8-19 16
Growth Drivers for Home Automation Systems Market
Home Automation Systems Market: Growth Drivers, Europe, 2021–2027
Driver 1–2 Years 3–4 Years 5–7 Years
Increasing demand for indoor air quality products High High High

Growing awareness on energy efficient retrofitting as part of climate
High High High
action plans
ISI Markets
Introduction of government grants for green and energy retrofit homes High High Medium
Innovative and flexible business models that appeal to customers

Medium Medium Medium
because they offer minimal initial cost
Occupant’s comfort and convenience Medium Medium Medium

MFD8-19 17
Growth Restraints for Home Automation Systems Market
Home Automation Systems Market: Growth Restraints, Europe, 2021–2027
Restraint 1–2 Years 3–4 Years 5–7 Years
High initial cost High High Medium

Threat from do-it-yourself (DIY) home automation products High Medium Medium
ISI Markets
Subsequent COVID-19 waves or effects of the pandemic Medium No impact No impact

MFD8-19 18
Forecast Assumptions, Home Automation Systems Market
• Frost & Sullivan employs a robust pandemic assessment model to determine the effects of COVID-19
on the European home automation systems market in 2020.
• The factors considered for the pandemic assessment model are:

o Energy-efficiency-related retrofits in residential and small commercial buildings
o Government grants for green and energy retrofit homes
ISI Markets
o Innovative business models and expansion of product portfolio
o Occupant’s comfort and convenience
• Frost & Sullivan employs its in-house forecasting model based on market drivers and restraints to
predict the market revenues from 2021 to 2027. Historical revenues from 2017 to 2019 and base year
2020 revenue from the pandemic assessment model were used as inputs for the forecasting model.
• This approach was carried out for each country covered in this research.

MFD8-19 19
Revenue Forecast, Home Automation Systems Market
Home Automation Systems Market: Revenue Forecast, Europe, 2017–2027

Revenue CAGR (2020–2027) = 17.2%
1,600.0 25.0
1,400.0
20.0

1,200.0
Revenue ($ Million)
Growth Rate (%)

1,000.0
15.0
ISI Markets
800.0
10.0
600.0
400.0
5.0
200.0
0.0 0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 375.7 427.7 493.0 495.3 529.5 596.8 714.6 872.6 1,050.2 1,262.5 1,504.7
Growth Rate - 13.8 15.3 0.5 6.9 12.7 19.7 22.1 20.4 20.2 19.2
Year

MFD8-19 20
Revenue Forecast by Countries, Home Automation Systems Market
Home Automation Systems Market: Revenue Forecast by Countries, Europe, 2017–2027
1,600.0
1,400.0
1,200.0
Revenue ($ Million)
1,000.0
800.0

600.0
400.0
ISI Markets
200.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20-27)
Rest of Europe 23.7 26.6 30.2 32.6 35.0 39.6 46.8 55.9 65.7 76.2 89.0 15.4%
Nordics 28.1 31.2 35.1 35.7 37.9 41.7 49.0 58.0 67.7 78.3 91.5 14.4%
Benelux 55.2 62.9 73.3 74.0 81.6 92.2 110.9 134.4 160.3 188.0 222.1 17.0%
Poland 18.3 21.1 24.7 27.1 30.2 34.7 42.4 52.1 63.1 76.5 91.3 18.9%
Italy 32.5 34.8 37.7 34.2 34.6 36.6 41.2 46.8 52.5 60.3 68.3 10.4%
Spain 25.7 28.6 32.3 30.8 31.3 34.0 39.3 46.7 54.7 64.9 75.9 13.8%
France 54.9 61.5 69.8 68.5 71.4 79.4 93.7 113.9 136.2 164.2 194.9 16.1%
Germany 79.1 92.4 108.4 107.6 115.2 131.5 159.4 198.3 243.0 297.8 359.3 18.8%
UK 58.2 68.6 81.5 84.8 92.3 107.1 131.9 166.5 207.0 256.3 312.4 20.5%

MFD8-19 21
Revenue Forecast Analysis, Home Automation Systems Market
Market
• Home automation products that require professional installation are usually expensive because of the complexity of
design, installation, and configuration involved.
• The home automation ecosystem has shifted away from comfort and convenience to energy efficiency and health
and wellbeing since the pandemic.
o The requirement for energy efficiency and entertainment drive the demand for lighting and indoor climate
control products, while comfort and convenience drive the demand for blind control products.

• The European Commission’s Climate Target Plan to cut net greenhouse gas emission by at least 55% by 2030
(compared to 1990) requires about €250 billion additional investment per year.
ISI Markets
• European Commission’s renovation wave strategy is expected to boost HAS demand because the focus is on
modernizing buildings with energy efficiency and adopting digital measures to sustain economic recovery. The
renovation wave is likely to be supported by the 2021–2027 Multiannual Financial Framework and
NextGenerationEU, a recovery instrument.
o 11% of building stock in Europe undergoes some form of renovation each year. Only 1% undergoes energy
renovation, each year, and deep renovations that reduces energy consumption by 60% are carried only in 0.2%
of building stock, every year.
o This renovation wave is likely to help the European Commission meet its objective of accelerating the annual
renovation rate of residential and non-residential buildings through deep energy renovations; about 35 million
building units are likely to be renovated by 2030.
• Consumer awareness of the requirement for energy efficiency and the European Commission’s renovation wave
strategy will work together to boost the demand for home automation products over the next 5 to 7 years.

MFD8-19 22
Revenue Forecast by Product, Home Automation Systems Market
Home Automation Systems Market: Revenue Forecast by Product, Europe, 2017–2027
1,600.0
1,400.0
1,200.0
Revenue ($ Million)

1,000.0
ISI Markets
800.0
600.0
400.0
200.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Window/Shutter/Blind Control 76.2 86.9 103.2 106.0 113.8 128.8 153.2 190.5 228.3 272.5 321.8 17.2%
Entertainment 28.9 33.1 39.4 38.3 41.1 48.2 61.0 75.7 88.7 108.9 127.0 18.7%
Indoor Climate Control 117.7 137.1 159.9 163.1 174.0 196.8 235.4 287.7 356.4 431.9 532.4 18.4%
Lighting 152.9 170.6 190.5 187.9 200.6 223.0 265.0 318.7 376.8 449.2 523.5 15.8%

MFD8-19 23
Revenue Forecast by End-user Vertical, Home Automation Systems
Market
Home Automation Systems Market: Revenue Forecast by End-user Vertical, Europe, 2017–2027
1,600.0
1,400.0

1,200.0
Revenue ($ Million)
1,000.0
ISI Markets
800.0
600.0
400.0
200.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Luxury HAS 180.0 201.2 233.5 232.0 247.8 275.7 332.7 400.0 484.5 571.4 679.3 16.6%
Mainstream HAS 195.7 226.5 259.4 263.2 281.7 321.1 381.9 472.6 565.7 691.1 825.3 17.7%
Year

MFD8-19 24
Revenue Forecast Analysis by End-user Vertical, Home Automation
Systems Market
Mainstream HAS Luxury HAS
• Mainstream HAS primarily focuses on the single • Luxury HAS focuses on luxury homes with a minimum
home segments with a minimum area of 100 square area of 200 square meter, high-rise residential
meters. buildings, and small commercial buildings.

• The professional home automation installers of • Professional home automation installers propose
mainstream HAS end-user vertical propose basic premium and luxury packages which includes
ISI Markets
lighting control package or the professional package professional package, shade control, and
including lighting control, indoor climate control, and entertainment options.
blind control products.
• The luxury segment contracted by 0.6% in 2020
• The mainstream HAS segment is estimated to have because of the pandemic. This segments is forecast to
grown only by 1.5 % in 2020 due to the pandemic. grow at a CAGR of 16.6% until 2027 and reach
This is a sharp decline from the 2019 growth rate. pre-pandemic growth levels by H2, 2022.
• Some of the mainstream HAS segment competitors • Some of the luxury HAS competitors are Crestron,
are Legrand, ABB, Schneider Electric, Fibaro, Harman, Siemens, Schneider Electric, Control4,
Control4, Delta Dore, Vimar, and Niko. Vantage Control (Legrand Integrated Solutions), and
Nice S.p.A.

MFD8-19 25
Pricing Trends, Home Automation Systems Market
The price displayed here covers design, cabling, electric switch cabinets, and home automation devices. The prices
below indicate the cost of a whole system for a house with an area of 200 square meters. It covers the control of 40
light circuits, 16 window blinds, 8 heating zones, including design and installation charges.
Home Automation Systems Market: Pricing Trends, Europe, 2020
Cost Per

Package Type Products Included Sq. Meter Total Cost Range Pricing Trend
Basic • Lighting control $60–$90 $12,000–$18,000
ISI Markets
• Lighting
Professional • Indoor climate control $90–$120 $18,000–$24,000
or blind control
• Lighting
• Indoor climate control
Premium $120–$180 24,000–$36,000
• Blind control or
entertainment
• Lighting
• Indoor climate control More than
Luxury More than $36,000
• Blind control $180
• Entertainment

MFD8-19 26
Competitive Environment, Home Automation Systems Market
Home Automation Systems Market: Competitive Environment, Europe, 2020
Number of Competitors More than 100 companies, with revenue greater than $4.0 million
Energy savings, cost, payment model, business model, brand,

Competitive Factors
performance
ISI Markets
Key End-user Industry Verticals Mainstream and luxury segments
Leading Competitors Crestron, Harman, Legrand, ABB, Siemens, Schneider Electric
Revenue Share of Top 6 Competitors 43.7%
Other Notable Competitors Control 4, Savant Systems, Fibaro, Vimar, Delta Dore, Niko, Jung
Distribution Structure Value-added resellers, direct sales, and retailers

MFD8-19 27
Revenue Share, Home Automation Systems Market
Home Automation Systems Market: Revenue Share of Top Participants, Europe, 2020
Crestron
13.3%
Harman

10.2%
ISI Markets
Legrand
5.4%
Others*
56.3% ABB
5.0%
Siemens
4.9%
Schneider Electric
4.9%
*Others include Control4, Savant Systems, Fibaro, Gira, Jung, Vimar, Delta Dore, Domintell,
Niko, Zipato, Bticino, Teletask, Luxom, Domestia, Loxone, HDL Automation, Leviton, Lutron,
iRidium Mobile, and so on.

MFD8-19 28
Revenue Share Analysis, Home Automation Systems Market
• Crestron, a global automation and control provider for homes and buildings, offers a gamut of products in lighting
controls, security, indoor environment, entertainment, shade and blind controls segments. The company releases
yearly upgrade of its smart home solution called Crestron Home which now operates on OS 3 platform with
improved UI interface, intuitive display features, and secured communications. The platform underwent a huge
beta testing programme tested by 250 integrators.
• Harman, a Samsung company, is another luxury segment home automation provider to residential customers. The
company offers integrated whole home automation solution, including safety and security, entertainment, indoor

climate control and a higher level of customization.
• Legrand’s MyHOME home automation solution targets both mainstream and luxury HAS with safety, comfort, and
ISI Markets
energy savings proposed as value addition to its offering. The home automation solution allows functional third-
party integration with existing Legrand products through Legrand Integrated Solutions (LIS). This allows MyHOME to
integrate with Vantage InFusion control platform. This allows Legrand customers the option to easily upgrade to
new products and open new automation experience for its customers.
• ABB’s professional home automation solution is offered under the brand ABB-free@home. The company targets its
automation solution at both mainstream and luxury end-user segments. The solution covers lighting control, indoor
climate control, shading control, and safety and security products. Some of the key features that attracts its
customers are remote control with the MyBuildings portal, voice control over mobile devices, and integration with
third-party products and services.
• Siemens offers LOGO! Home automation solution, including lighting control, pump control, gate and access control
and other security products. Schneider Electric targets both mainstream and luxury end users through its Wiser
gateway device that can be installed inside switch panel to control basic home functions. The Wiser Home Touch
solution offers lighting control, heating control, and shutter control with advanced features, and control options.

MFD8-19 29
ISI Markets
Automation Systems Market, UK

MFD8-19 30
Key Growth Metrics for Home Automation Systems Market, UK
Home Automation Systems Market: Key Growth Metrics, UK, 2020
Revenue
Units/
for Last Base Year Growth
Life Cycle Stage Revenue Year ofVolume
Study Period Rate
High $84.8 M $312.4 M 4.0%

Growth
(2020) (2027) (2020)
ISI Markets
20.5% 30+ 8
(2020–2027) (active competitors in 2020) (scale:1 [low] to 10 [high])

MFD8-19 31
Revenue Forecast for Home Automation Systems Market, UK
Home Automation Systems Market: Revenue Forecast, UK, 2017–2027

Revenue CAGR (2020–2027) = 20.5%
350.0 30.0
300.0
25.0

250.0
Revenue ($ Million)
20.0
Growth Rate (%)

ISI Markets
200.0
15.0
150.0
10.0
100.0
5.0
50.0
0.0 0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 58.2 68.6 81.5 84.8 92.3 107.1 131.9 166.5 207.0 256.3 312.4
Growth Rate - 17.8 18.8 4.0 8.9 16.0 23.1 26.3 24.3 23.9 21.9
Year

MFD8-19 32
Revenue Forecast by Product for Home Automation Systems Market,
UK
Home Automation Systems Market: Revenue Forecast by Product, UK, 2017–2027
350.0
300.0
250.0
Revenue ($ Million)

200.0
ISI Markets
150.0
100.0
50.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 4.1 4.8 5.7 6.8 7.4 9.6 11.9 15.0 20.7 25.6 31.2 24.3%
Lighting 29.0 32.3 37.5 37.3 39.7 45.0 55.4 68.3 80.7 102.5 121.8 18.4%
Year

MFD8-19 33
Revenue Forecast Analysis for Home Automation Systems Market, UK
• The focus on energy-efficient homes and the UK government’s £3 billion green homes grant for 600,000 homes have
generated excitement among home automation participants. The green homes package includes £2 billion grant for
green homes and £1 billion for improving energy efficiency in public buildings.
• The scheme allows the UK government to fund up to two-thirds of the cost of energy efficient home improvements,
with a maximum funding limit up to £5,000 per household. The streamlining of the incentive scheme would help ease
the financial burden on customers investing in HAS.

• There is less clarity on the inclusion of HAS covered by the energy-efficient retrofit solution for homes as prescribed
by the government. However, industry participants are confident that home automation products, including lighting
ISI Markets
control and indoor climate control, would be on the list of prescribed energy-efficient solution applicable for the
grant scheme.
• The UK has the highest smart speaker penetration in Europe, at more than 20% of UK households. Though the rapid
penetration of voice-controlled, AI-enabled smart speakers is seen as a threat to professional entertainment control
systems, high demand is expected in the luxury segment.
• The United Kingdom accounts for 17.1% of the European HAS market and continues to be one of the top high-growth
markets for home automation participants. The revenue is estimated to have grown by 4.0% in 2020, primarily
affected by the COVID-19 pandemic.
• The UK HAS market is estimated to reach pre-pandemic growth rates by H2, 2022 and generate $312.4 million by
2027 at a CAGR of 20.5%.

MFD8-19 34
ISI Markets
Automation Systems Market, Germany

MFD8-19 35
Key Growth Metrics for Home Automation Systems Market, Germany
Home Automation Systems Market: Key Growth Metrics, Germany, 2020
Revenue
Units/
Study Period Rate
High $107.6 M $359.3 M (0.7%)

Growth
(2020) (2027) (2020)
ISI Markets
18.8% 30+ 8

MFD8-19 36
Revenue Forecast for Home Automation Systems Market, Germany
Home Automation Systems Market: Revenue Forecast, Germany, 2017–2027

Revenue CAGR (2020–2027) = 18.8%
400.0 30.0
350.0 25.0

300.0
20.0
Revenue ($ Million)
Growth Rate (%)

250.0
ISI Markets
15.0
200.0
10.0
150.0
5.0
100.0
50.0 0.0
0.0 (5.0)
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 79.1 92.4 108.4 107.6 115.2 131.5 159.4 198.3 243.0 297.8 359.3
Growth Rate - 16.8 17.3 (0.7) 7.1 14.1 21.2 24.4 22.5 22.6 20.6
Year

MFD8-19 37
Germany
Home Automation Systems Market: Revenue Forecast by Product, Germany, 2017–2027
400.0
350.0
300.0
Revenue ($ Million)

250.0
200.0
ISI Markets
150.0
100.0
50.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 6.3 7.4 8.7 7.5 8.0 9.2 12.7 15.9 17.0 20.9 25.2 18.9%
Lighting 36.4 41.6 46.6 45.2 48.4 55.2 65.4 79.3 97.2 116.1 132.9 16.7%
Year

MFD8-19 38
Revenue Forecast Analysis by Product for Home Automation Systems
Market, Germany
• HAS adoption in Germany is primarily based on two key aspects—energy and cost savings, because people are more
cautious and try to keep utility costs to a minimum. Electricity price in Germany is the highest in Europe.
• On an average, an 80-squar-meter home would consume nearly 1250 kWh of electricity per month and costs about
€375 per month, keeping energy cost at €0.3/kWh for Germany (based on 2020 half-yearly electricity prices from
Eurostat). This is nearly 15% of the average monthly net income received in Germany. Therefore, households are
always keen to try new energy saving opportunities to reduce their utility bills.

• In addition, the German government has announced tax incentives for owner-occupied homes for energy-efficient
renovations, including insulation measures, replacement of old heating and ventilation systems and the installation of
ISI Markets
digital energy management and automation systems. This scheme allows home owners to reduce up to €40,000 from
their taxable income for energy renovations.
• The high electricity price and tax incentives will together boost the demand for both basic and professional HAS,
particularly lighting control and indoor climate control products.
• KNX-based Home Automation Systems Market has high penetration in Germany; therefore, ABB, Siemens, Schneider
Electric, Gira, Jung have a strong presence in this country.
• Germany accounts for 21.7% of the European HAS market and continues to be the largest market for home
automation participants.
• Though revenue contracted by 0.7% in 2020, the German HAS market is set to grow at a CAGR of 18.8% and reach
pre-pandemic growth rates by the second half of 2022 and generate $359.3 million by 2027.
Source: Eurostat; Frost & Sullivan

MFD8-19 39
ISI Markets
Automation Systems Market, France

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Key Growth Metrics for Home Automation Systems Market, France
Home Automation Systems Market: Key Growth Metrics, France, 2020
Revenue
Units/
Study Period Rate
High $68.5 M $194.9 M (1.9%)

Growth
(2020) (2027) (2020)
ISI Markets
16.1% 30+ 8

MFD8-19 41
Revenue Forecast for Home Automation Systems Market, France
Home Automation Systems Market: Revenue Forecast, France, 2017–2027

Revenue CAGR (2020–2027) = 16.1%
250.0 30.0
25.0
200.0

20.0
Revenue ($ Million)
Growth Rate (%)

150.0
ISI Markets
15.0
10.0
100.0
5.0
50.0
0.0
0.0 (5.0)
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 54.9 61.5 69.8 68.5 71.4 79.4 93.7 113.9 136.2 164.2 194.9
Growth Rate - 12.0 13.5 (1.9) 4.2 11.2 18.1 21.5 19.6 20.5 18.7
Year

MFD8-19 42
France
Home Automation Systems Market: Revenue Forecast by Product, France, 2017–2027
250.0
200.0
Revenue ($ Million)

150.0
ISI Markets
100.0
50.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 6.6 7.4 9.1 8.2 8.6 10.3 13.1 15.9 17.7 21.3 23.4 16.2%
Lighting 18.1 19.7 20.9 19.9 20.7 22.2 25.3 29.6 34.1 41.1 48.7 13.6%
Year

MFD8-19 43
Market, France
• In the post-lockdown scenario, home automation participants in France would rely on government incentive schemes
for energy efficiency that would indirectly boost HAS demand. The revenue contracted by 1.9% in 2020 because of
the pandemic.
• The French government has plans to reduce energy-intensive homes in a phased manner over the next 7 years.
Nearly 7 million homes with an energy performance classification of F and G will be targeted over a 7-year period
beginning from 2021.

o The first measure, starting from 2021, will ban landlords from raising rental rates if they do not carry out works to
improve energy efficiency of their property.
ISI Markets
o The second measure, starting from 2022, will require owners of energy-intensive homes to carry out energy
audits if they wish to rent or sell their property.
o The third measure, starting from 2023, will be classed ‘indecent,’ and tenants will have rights to demand for
energy efficiency improvements.
o Finally, property owners will be obligated to carry out energy efficiency improvements before the end of 2028 if
they have not yet taken any measures to do so.
• MaPrimeRénov, financial assistance scheme in the form of grants, will be available to all homeowners with a
maximum total grant of €20,000 over a 5-year period; the combined grants should not exceed the 90% of the costs of
the work. The grants will also be provided based on the level of household income and the energy savings achieved.
• Mandatory energy efficiency measures and financial assistance from the French government will help boost the
growth of basic and professional home automation products at a CAGR of 16.1% until 2027.

MFD8-19 44
ISI Markets
Automation Systems Market, Spain

MFD8-19 45
Key Growth Metrics for Home Automation Systems Market, Spain
Home Automation Systems Market: Key Growth Metrics, Spain, 2020
Revenue
Units/
Study Period Rate
High $30.8 M $75.9 M (4.6%)

Growth
(2020) (2027) (2020)
ISI Markets
13.8% 20+ 7

MFD8-19 46
Revenue Forecast for Home Automation Systems Market, Spain
Home Automation Systems Market: Revenue Forecast, Spain, 2017–2027

Revenue CAGR (2020–2027) = 13.8%
80.0 30.0
70.0 25.0

60.0 20.0
Revenue ($ Million)
Growth Rate (%)

50.0 15.0
ISI Markets
40.0 10.0
30.0 5.0
20.0 0.0
10.0 (5.0)
0.0 (10.0)
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 25.7 28.6 32.3 30.8 31.3 34.0 39.3 46.7 54.7 64.9 75.9
Growth Rate - 11.3 12.9 (4.6) 1.7 8.6 15.4 18.9 17.1 18.7 17.0
Year

MFD8-19 47
Spain
Home Automation Systems Market: Revenue Forecast by Product, Spain, 2017–2027
80.0
70.0
60.0
Revenue ($ Million)

50.0
40.0
ISI Markets
30.0
20.0
10.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 1.8 2.3 2.6 2.2 2.2 2.4 2.4 2.8 3.3 3.9 4.2 9.7%
Lighting 6.0 6.4 7.1 7.1 7.5 8.2 9.4 11.7 13.7 15.6 17.5 13.8%
Year

MFD8-19 48
Market, Spain
• Spain is a relatively low-income country, compared to other western European countries; therefore, homeowners
have very little wallet space for professional HAS installation.
• The cost of basic home automation systems with lighting control option is nearly 50% of the average annual net
salary in Spain. Therefore, home automation market participants will have to offer innovative, flexible payment
models, not to mention the value addition that would increase the market attractiveness of their products.

• In addition, home owners expect financial support from the government when adopting energy efficient automation
systems, as it will help reduce utility bill cost.
ISI Markets
• From 2021 to 2023, the Spanish government has plans to invest €72 billion of European funds on recovery,
transformation, and resilience, addressing four key areas: ecological transition, digitalization, gender equality, and
social cohesion. Although a major part of the fund is earmarked for digital transformation, it is unclear if this includes
digital energy management and automation systems.
• The impact of COVID-19 on the home automation systems market in Spain was harder than in other European
countries; therefore, the HAS market is Spain will reach pre-pandemic growth levels by the first half of 2023. Overall
revenue is expected to grow at a CAGR of 13.8% until 2027.

MFD8-19 49
ISI Markets
Automation Systems Market, Italy

MFD8-19 50
Key Growth Metrics for Home Automation Systems Market, Italy
Home Automation Systems Market: Key Growth Metrics, Italy, 2020
Revenue
Units/
Study Period Rate
High $34.2 M $68.3 M (9.3%)

Growth
(2020) (2027) (2020)
ISI Markets
10.4% 20+ 7

MFD8-19 51
Revenue Forecast for Home Automation Systems Market, Italy
Home Automation Systems Market: Revenue Forecast, Italy, 2017–2027

Revenue CAGR (2020–2027) = 10.4%
80.0 30.0
70.0 25.0
20.0

60.0
Revenue ($ Million)
15.0
50.0
Growth Rate (%)

ISI Markets
10.0
40.0
5.0
30.0
0.0
20.0
(5.0)
10.0 (10.0)
0.0 (15.0)
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 32.5 34.8 37.7 34.2 34.6 36.6 41.2 46.8 52.5 60.3 68.3
Growth Rate - 7.1 8.3 (9.3) 1.3 5.6 12.6 13.7 12.1 14.9 13.3
Year

MFD8-19 52
Italy
Home Automation Systems Market: Revenue Forecast by Product, Italy, 2017–2027
80.0
70.0
60.0
Revenue ($ Million)

50.0
40.0
ISI Markets
30.0
20.0
10.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 2.0 2.1 2.6 2.1 1.7 2.2 2.5 2.8 2.4 3.0 3.4 7.1%
Lighting 12.0 13.1 13.2 12.3 13.0 13.5 15.2 16.8 18.9 21.1 23.9 10.0%
Year

MFD8-19 53
Market, Italy
• Similar to Spain, Italy is also a low-income country compared to other Western countries; as a result, home owners
are quite keen to adopt basic, less-expensive home automation devices that would automate their heating control,
appliances, and security systems. In addition, the impact of COVID-19 on the country has been quite hard on the
economy as well as the home automation market that contracted by 9.3% in 2020.
• Italy charges the sixth highest electricity prices in Europe—15% more than the average European electricity price.
Rising electricity prices and the lull in economic activity are sources of concern for Italian home owners.

• For households drawing average net monthly salary, an investment in professional HAS will be quite expensive. It is
ISI Markets
imperative for home automation providers to come up with attractive and innovative business models that would
lessen the financial burden of home owners.
• The European Renovation Wave and the Next Generation EU proposal for Europe’s economic recovery have
encouraged the Italian government to announce a Superbonus 110 tax rebate scheme for renovation work that
increases energy efficiency at homes. The rebate covers renovation work related to thermal insulation of building
surfaces, replacement of heating and cooling systems, installation of solar thermal collectors, solar PV, and electric
vehicle charging infrastructure, and other measures that would improve the energy efficiency rating of a building by
two energy classes.
• HAS could very well augment energy savings, in addition to the above-mentioned energy efficiency measures;
therefore, higher awareness of such measures and tax rebates could boost the demand for home automation
products during the forecast period.

MFD8-19 54
ISI Markets
Automation Systems Market, Poland

MFD8-19 55
Key Growth Metrics for Home Automation Systems Market, Poland
Home Automation Systems Market: Key Growth Metrics, Poland, 2020
Revenue
Units/
Study Period Rate
High $27.1 M $91.3 M 9.7%

Growth
(2020) (2027) (2020)
ISI Markets
18.9% 15+ 7

MFD8-19 56
Revenue Forecast for Home Automation Systems Market, Poland
Home Automation Systems Market: Revenue Forecast, Poland, 2017–2027

Revenue CAGR (2020–2027) = 18.9%
100.0 30.0
90.0
25.0
80.0

70.0
20.0
Revenue ($ Million)
Growth Rate (%)

60.0
ISI Markets
50.0 15.0
40.0
10.0
30.0
20.0
5.0
10.0
0.0 0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 18.3 21.1 24.7 27.1 30.2 34.7 42.4 52.1 63.1 76.5 91.3
Growth Rate - 15.3 17.1 9.7 11.4 14.9 22.2 23.0 21.1 21.3 19.4
Year

MFD8-19 57
Poland
Home Automation Systems Market: Revenue Forecast by Product, Poland, 2017–2027
100.0
90.0
80.0
70.0
Revenue ($ Million)

60.0
50.0
ISI Markets
40.0
30.0
20.0
10.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 0.9 1.1 1.2 1.6 1.8 1.7 2.1 2.6 3.2 3.8 4.6 16.3%
Lighting 5.1 5.9 6.7 7.1 7.6 9.1 11.1 14.1 17.0 19.2 22.7 18.1%
Year

MFD8-19 58
Market, Poland
• Over the last 3 or 4 years, smart home penetration has grown steadily in Poland; it is expected to surpass 10% by
2022. There is a definite openness toward smart home automation solution here.
• The first wave of the COVID-19 pandemic had less impact on business and allowed the HAS market to grow by 9.7%
in 2020, the highest growth in Europe.
• Polish households are quite aware of smart home technologies and IoT devices; they prefer products that are less

complex, controlled by mobile devices, and easy to install.
• Poland is another low-income country in Europe, so price is a major factor that affects the adoption of smart home
ISI Markets
products. This is definitely a threat to the professional home automation segment because they are seen as luxury
products involving complex installation methods.
• However, the professional home automation participants have witnessed high growth in the last 2 years, with real
estate developers incorporating smart home automation solution in new homes to add value to their customers.
• It is imperative that participants offer professional home automation products along with home security products at
competitive price, with less complex installation and involving artificial intelligence or other cutting-edge
technologies that will compete with DIY products in the mainstream HAS segment. This would enable the
professional home automation market to grow at a CAGR of 19.0% until 2027.

MFD8-19 59
ISI Markets
Automation Systems Market, Benelux

MFD8-19 60
Key Growth Metrics for Home Automation Systems Market, Benelux
Home Automation Systems Market: Key Growth Metrics, Benelux, 2020
Revenue
Units/
Study Period Rate
High $74.0 M $222.1 M 1.0%

Growth
(2020) (2027) (2020)
ISI Markets
17.0% 20+ 8

MFD8-19 61
Revenue Forecast for Home Automation Systems Market, Benelux
Home Automation Systems Market: Revenue Forecast, Benelux, 2017–2027

Revenue CAGR (2020–2027) = 17.0%
250.0 30.0
25.0
200.0

20.0
Revenue ($ Million)
Growth Rate (%)

150.0
ISI Markets
15.0
100.0
10.0
50.0
5.0
0.0 0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 55.2 62.9 73.3 74.0 81.6 92.2 110.9 134.4 160.3 188.0 222.1
Growth Rate - 13.9 16.5 1.0 10.3 13.0 20.3 21.1 19.3 17.3 18.1
Year

MFD8-19 62
Benelux
Home Automation Systems Market: Revenue Forecast by Product, Benelux, 2017–2027
250.0
200.0
Revenue ($ Million)

150.0
ISI Markets
100.0
50.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 3.9 4.4 5.1 5.9 6.5 7.4 10.0 12.1 14.4 18.8 22.2 20.8%
Lighting 22.1 25.2 29.3 28.9 31.8 35.0 42.1 51.1 59.3 69.6 82.2 16.1%
Year

MFD8-19 63
Market, Benelux
• Home automation market can be primarily divided between Flanders and Wallonia, as there is limited opportunity
in Brussels because the majority of the households in Brussels rent their homes. More than 90% of the home
owners in Flanders and Wallonia own single dwellings while it is nearly 50% in Brussels.
• Nearly 70% of the home automation market is in Flanders because of the high population and the quality of
dwellings when compared to the rest of Belgium.

• Lighting and shade/blind control are the most adopted application of Home Automation Systems Market in
Belgium. Home automation integration with HVAC controls is not easy and is usually carried out by electrical
ISI Markets
specialists.
• Dutch consumers associate home automation and smart home products with energy savings and convenience—
remote control of appliances. However, market barriers, such as expensive systems and privacy issues, prevent
consumers from accepting new products and features.
• In Belgium, 50% of the market is held by Niko, Bticino, Teletask, Domintell, and Luxom, which primarily offer
professional homes automation systems. Nearly 40% is held by basic system providers such as Niko, Domestia, and
Legrand. The remaining 10% is held by luxury and premium system providers, such as Crestron and Harman.
• Electrical wholesalers form the largest distribution channel in Belgium; therefore, suppliers of electrical products,
such as Niko, Legrand, and ABB are expected to benefit from new build projects.

MFD8-19 64
ISI Markets
Automation Systems Market, Nordics

MFD8-19 65
Key Growth Metrics for Home Automation Systems Market, Nordics
Home Automation Systems Market: Key Growth Metrics, Nordics, 2020
Revenue
Units/
Study Period Rate
High $35.7 M $91.5 M 1.7%

Growth
(2020) (2027) (2020)
ISI Markets
14.4% 20+ 8

MFD8-19 66
Revenue Forecast for Home Automation Systems Market, Nordics
Home Automation Systems Market: Revenue Forecast, Nordics, 2017–2027

Revenue CAGR (2020–2027) = 14.4%
100.0 30.0
90.0
25.0
80.0

70.0
20.0
Revenue ($ Million)
Growth Rate (%)

60.0
ISI Markets
50.0 15.0
40.0
10.0
30.0
20.0
5.0
10.0
0.0 0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 28.1 31.2 35.1 35.7 37.9 41.7 49.0 58.0 67.7 78.3 91.5
Growth Rate - 11.0 12.5 1.7 6.2 10.1 17.4 18.4 16.7 15.7 16.8
Year

MFD8-19 67
Nordics
Home Automation Systems Market: Revenue Forecast by Product, Nordics, 2017–2027
100.0
90.0
80.0
70.0
Revenue ($ Million)

60.0
50.0
ISI Markets
40.0
30.0
20.0
10.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 2.3 2.5 3.2 2.9 3.8 4.2 4.9 6.4 7.4 8.6 10.1 19.5%
Lighting 12.6 13.4 14.4 14.3 14.8 15.8 18.6 21.5 25.0 28.2 32.0 12.2%
Year

MFD8-19 68
Market, Nordics
• The Nordics is one of the advanced regions, in terms of technology adoption and awareness of IoT-based smart
home devices. It is also a high-income region where households are open to adopting mid-range or luxury Home
Automation Systems Markets that offer comfort and convenience.
• KNX systems, which had less market penetration prior to 2015, is now witnessing higher installations in Denmark.
Although basic Home Automation Systems Markets, particularly lighting and indoor climate control, dominate the

market, there is higher penetration of premium systems in the luxury segment.
• In Sweden, basic systems contributed to move than 55% of the market, while adoption of top-end systems was
ISI Markets
concentrated in the luxury segment. However, there is increasing penetration of top-end systems with KNX
protocol, as the requirement for interoperability and integration of different smart home functions is growing.
• The Nordics home automation market grew by just 1.7% during the pandemic. It is expected to grow at a CAGR of
14.4% (2020–2027) and reach pre-pandemic growth rate by the second half of 2022.

MFD8-19 69
ISI Markets
Automation Systems Market, Rest of Europe

MFD8-19 70
Key Growth Metrics for Home Automation Systems Market, Rest of
Europe
Home Automation Systems Market: Key Growth Metrics, Rest of Europe, 2020
Revenue
Units/
Study Period Rate
High $32.6 M $89.0 M 7.9%

Growth
(2020) (2027) (2020)
ISI Markets
15.4% 15+ 7

MFD8-19 71
Revenue Forecast for Home Automation Systems Market, Rest of
Europe
Home Automation Systems Market: Revenue Forecast, Rest of Europe, 2017–2027
Revenue CAGR (2020–2027) = 15.4%
100.0 30.0
90.0
25.0
80.0

70.0
Revenue ($ Million)
20.0
Growth Rate (%)

60.0
ISI Markets
50.0 15.0
40.0
10.0
30.0
20.0
5.0
10.0
0.0 0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Revenue 23.7 26.6 30.2 32.6 35.0 39.6 46.8 55.9 65.7 76.2 89.0
Growth Rate - 12.2 13.5 7.9 7.5 12.9 18.4 19.3 17.5 16.0 16.9
Year

MFD8-19 72
Rest of Europe
Home Automation Systems Market: Revenue Forecast by Product, Rest of Europe, 2017–2027
100.0
90.0
80.0
70.0
Revenue ($ Million)

60.0
50.0
ISI Markets
40.0
30.0
20.0
10.0
0.0
CAGR
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
(20–27)
Entertainment 1.0 1.1 1.2 1.1 1.1 1.2 1.4 2.2 2.6 3.0 2.7 13.7%
Lighting 11.6 13.0 14.8 15.8 17.1 19.0 22.5 26.3 30.9 35.8 41.8 14.9%
Year

MFD8-19 73
Market, Rest of Europe
• Rest of Europe includes Eastern European countries that are generally categorized as low-income countries but with
high economic growth. Smart homes penetration in Eastern European countries has been aggressive due to the
uptake of DIY smart home products, particularly smart speakers, and their favourable price points.
• The penetration of professional HAS has been relatively low due to high initial cost and complex installation
methods. However, Fibaro, Zipato, and iRidium Mobile have introduced mid-range products that are less complex

and can be installed with minimum training; these products target the low-income group of the population.
• Eastern European countries were mildly affected during the first wave of the pandemic and there was not much
ISI Markets
disruption in business in 2020, which augured well for the home automation market because it witnessed a growth
of 7.9% in 2020. However, the second wave has affected Eastern European countries badly, and a U-shaped
recovery is expected until the market reaches its pre-pandemic growth levels by the second half of 2022.

MFD8-19 74
Growth Opportunity Universe, Home
ISI Markets

MFD8-19 75
Growth Opportunity 1—Leverage European Renovation Wave Strategy to
Drive Demand for Home Automation Systems Markets, 2021–2027
Frost & Sullivan has identified 10 Growth Processes that serve as levers for determining and evaluating new Growth Opportunities.
Geographic Vertical Market

Expansion Expansion
Customer and Competitive
Branding Distribution Strategy
Growth Strategic

Channel
Processes New Product Optimization New Product
Partnering
Development Launch
Mergers &
ISI Markets
Technology and IP
Acquisitions
Relevant Segments for this Growth Opportunity Applicable Regions
The United Kingdom Germany

Lighting Control Indoor Climate Control
Timeline France Italy

7 Years
for Action
Blind Control Entertainment Control Spain Poland
Benelux Nordics
Base Year 2020 Shade Control Window Automation
Rest of Europe

MFD8-19 76
Growth Opportunity 1—Leverage European Renovation Wave Strategy to
Drive Demand for Home Automation Systems Markets, 2021–2027
(continued)
Context and Definition Call to Action
• Nearly 85% of the building stock in the European Union— • As Europe recovers from the pandemic, building renovation
about 220 million buildings—were constructed before the offers a huge opportunity for all homes and buildings
millennium. About 90% of such buildings will continue to be industry participants; they should offer digital solutions that
in operation until 2050, at least. Such buildings would not only bring sustained economic recovery but also manage

account for 40% of the EU's overall energy consumption. the larger goal of climate change.
• The European Commission has proposed the Climate Target • The action plan for building renovation requires €275 billion
ISI Markets
Plan 2030 to set the plan for future energy efficiency in the of additional investment, every year, to address the large
EU. Using 1990 greenhouse gas emission levels as a investment gap in Europe.
reference, the European Commission aims to cut net
• Home automation participants should thoroughly
emissions by 55%, minimum, by 2030.
understand the strategy and be on the lookout for
• The European Commission estimates that only 11% of the opportunities that will push home automation products into
building stock undergoes some level of renovation each the market.
year; energy renovations take place at 1% and deep
• It is critical for home automation participants to assist home
renovations that reduces energy consumption by 60% is at
owners in accessing public incentives for renovation and
0.2%, each year. The objective of the Renovation Wave
help them overcome regulatory constraints through a
strategy is to accelerate annual renovation rate in residential
targeted, channeled approach with market-based
and non-residential buildings and ensure that nearly
mechanisms.
35 million buildings are renovated by 2030.
Source: European Commission; Frost & Sullivan

MFD8-19 77
Growth Opportunity 2—Combine Indoor Air Quality (IAQ) Products with Home
Automation Systems Market to Create Product Attractiveness, 2021–2027

Expansion Expansion
Growth Strategic

Channel
Partnering
Development Launch
Mergers &
ISI Markets
Technology and IP
Acquisitions


7 Years
for Action
Benelux Nordics
Rest of Europe

MFD8-19 78
Growth Opportunity 2—Combine Indoor Air Quality (IAQ) Products with Home
Automation Systems Market to Create Product Attractiveness, 2021–2027
(continued)
• Health and wellness of building occupants has taken the • The demand for IAQ monitors to detect COVID-19,
center stage in post-pandemic building solutions. particulate and monitor indoor CO2 levels is growing; there
are very few companies that offer IAQ monitors with
• Frost & Sullivan estimated that the indoor air quality systems necessary upgrades to suit the post-pandemic environment.

market reached $7.51 billion in 2020; it is set to grow at a
CAGR of 7.9% and generate $11.94 billion by 2026. • Home automation participants should partner with
companies offering IAQ products to integrate window
• Some of the top air purification technologies to be
ISI Markets
automation/ventilation automation with IAQ sensors and
incorporated in indoor air quality systems are high efficiency offer it as a health and wellness package at a competitive
particulate air (HEPA) filters, activated carbon, ionization, price.
ultraviolet germicidal irradiation, and electrostatic filters.
• For instance, Velux integrates its roof ventilation system with
• With rising concerns over airborne transmission of Netatmo CO2 sensors, in addition to temperature and
COVID-19, IAQ monitors will be used to detect the presence humidity sensors that monitor control indoor climate and
harmful viruses and bacteria that cause diseases. R&D focus air quality.
on developing sensors to identify and track disease-causing
pathogens will increase.

MFD8-19 79
Growth Opportunity 3—Offer Flexible Payment Model to Ease the
Financial Pressure of Home Owners, 2021–2027

Expansion Expansion
Growth Strategic

Channel
Partnering
Development Launch
Mergers &
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Technology and IP
Acquisitions


7 Years
for Action
Benelux Nordics
Rest of Europe

MFD8-19 80
Growth Opportunity 3—Offer Flexible Payment Model to Ease the
Financial Pressure of Home Owners, 2021–2027 (continued)
• In addition to professional Home Automation Systems • Professional home automation companies, installers and
Markets being complex and expensive, price points have value-added resellers should offer flexible payment models
increased in the last 5 years. that ease the financial burden of home owners buying
custom installation system.
• Frost & Sullivan estimates that the price of a basic Home

Automation Systems Market for a 200 Sq. meter area • Customers are quite receptive to subscription service model,
covering 40 lighting circuits would be roughly over 50% of a especially in the software segment of the smart homes and
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European consumer’s average net salary. The initial cost of a smart buildings market. Home automation companies
HAS system is quite high for the mainstream population. should, therefore, introduce customer-centric payment
models, which will help in the retention and expansion of a
• DIY smart home products have been gaining traction over loyal customer base in the coming years.
the last 5 years. By targeting mainstream end users,
companies have been successful in achieving mass market
and higher smart home penetration in low-income countries.

MFD8-19 81
Growth Opportunity 4—Partner with Suitable DIY Mid-Segment Smart
Home Players to Add Value to Existing Offerings, 2021–2027

Expansion Expansion
Growth Strategic

Channel
Partnering
Development Launch
Mergers &
ISI Markets
Technology and IP
Acquisitions


7 Years
for Action
Benelux Nordics
Rest of Europe

MFD8-19 82
Growth Opportunity 4—Partner with Suitable DIY Mid-Segment Smart
Home Players to Add Value to Existing Offerings, 2021–2027 (continued)
• DIY smart home products, including smart speakers from • It would be challenging for professional home automation
Amazon, Google, Xiaomi, and a few others, have evidently providers to compete with DIY smart home providers on
influenced consumer behaviour in the smart homes market. pricing; however they can partner with suitable DIY
mid-segment smart home players to form a symbiotic
• Adoption of DIY smart home products has accelerated the

relationship that draws on each other’s strengths to offer
adoption of smart home devices in the last 5 years. DIY and value-addition at a competitive price.
professional home automation companies now integrate
ISI Markets
functions with smart speakers that help households easily • For instance, Fibaro, a Polish smart home company founded
control smart home devices. in 2010, quickly established itself in more than 100 countries
through its DIY plug-and-play and mid-segment products.
• DIY smart home products now pose a challenge to The company is estimated to have generated more than
professional and custom Home Automation Systems $30 million in 2017 and was acquired by Nice S.p.A, a top-
Markets, in terms of both price and ease of installation. end Italian professional home automation company, in 2018.
Eastern European countries have increased smart home
penetration, primarily driven by the DIY smart home • In 2020, Fibaro Home Center gateway was integrated with
products. Nice’s gate automation to perform various other smart
home functions when the home owner reached home or
opened the main entrance door.

MFD8-19 83
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Next Steps

MFD8-19 84
Your Next Steps
Take the Growth Participate in a Decide on Growth

Pipeline customized Growth Pipeline Audit™ or
Diagnostic™ Pipeline Dialog™ GPaaS™ Solution

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growth capabilities opportunities

MFD8-19 85
Why Frost, Why Now?
Our Expertise Client Impact
• 60 years of proven global experience

EXPERIENCE • Trusted partner of Investors, corporates, • FUTURE GROWTH POTENTIAL:
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MFD8-19 86
List of Exhibits
Exhibit Slide Number
Home Automation Systems Market: Key Growth Metrics, Europe, 2020 15
Home Automation Systems Market: Distribution Channel Analysis, Europe, 2020 16
Home Automation Systems Market: Growth Drivers, Europe, 2021–2027 17

Home Automation Systems Market: Growth Restraints, Europe, 2021–2027 18
Home Automation Systems Market: Revenue Forecast, Europe, 2017–2027 20
ISI Markets
Home Automation Systems Market: Revenue Forecast by Countries, Europe, 2017–2027 21
Home Automation Systems Market: Revenue Forecast by Product, Europe, 2017–2027 23
Home Automation Systems Market: Revenue Forecast by End-user Vertical, Europe, 2017–2027 24
Home Automation Systems Market: Pricing Trends, Europe, 2020 26
Home Automation Systems Market: Competitive Environment, Europe, 2020 27
Home Automation Systems Market: Revenue Share of Top Participants, Europe, 2020 28
Home Automation Systems Market: Key Growth Metrics, UK, 2020 31
Home Automation Systems Market: Revenue Forecast, UK, 2017–2027 32

MFD8-19 87
List of Exhibits (continued)
Home Automation Systems Market: Revenue Forecast by Product, UK, 2017–2027 33
Home Automation Systems Market: Key Growth Metrics, Germany, 2020 36
Home Automation Systems Market: Revenue Forecast, Germany, 2017–2027 37

Home Automation Systems Market: Revenue Forecast by Product, Germany, 2017–2027 38
Home Automation Systems Market: Key Growth Metrics, France, 2020 41
ISI Markets
Home Automation Systems Market: Revenue Forecast, France, 2017–2027 42
Home Automation Systems Market: Revenue Forecast by Product, France, 2017–2027 43
Home Automation Systems Market: Key Growth Metrics, Spain, 2020 46
Home Automation Systems Market: Revenue Forecast, Spain, 2017–2027 47
Home Automation Systems Market: Revenue Forecast by Product, Spain, 2017–2027 48
Home Automation Systems Market: Key Growth Metrics, Italy, 2020 51
Home Automation Systems Market: Revenue Forecast, Italy, 2017–2027 52
Home Automation Systems Market: Revenue Forecast by Product, Italy, 2017–2027 53

MFD8-19 88
List of Exhibits (continued)
Home Automation Systems Market: Key Growth Metrics, Poland, 2020 56
Home Automation Systems Market: Revenue Forecast, Poland, 2017–2027 57
Home Automation Systems Market: Revenue Forecast by Product, Poland, 2017–2027 58

Home Automation Systems Market: Key Growth Metrics, Benelux, 2020 61
Home Automation Systems Market: Revenue Forecast, Benelux, 2017–2027 62
ISI Markets
Home Automation Systems Market: Revenue Forecast by Product, Benelux, 2017–2027 63
Home Automation Systems Market: Key Growth Metrics, Nordics, 2020 66
Home Automation Systems Market: Revenue Forecast, Nordics, 2017–2027 67
Home Automation Systems Market: Revenue Forecast by Product, Nordics, 2017–2027 68
Home Automation Systems Market: Key Growth Metrics, Rest of Europe, 2020 71
Home Automation Systems Market: Revenue Forecast, Rest of Europe, 2017–2027 72
Home Automation Systems Market: Revenue Forecast by Product, Rest of Europe, 2017–2027 73

MFD8-19 89
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Quantitative market information is based primarily on interviews and therefore is subject to fluctuation.
Frost & Sullivan research services are limited publications containing valuable market information
provided to a select group of customers. Customers acknowledge, when ordering or downloading, that
Frost & Sullivan research services are for internal use and not for general publication or disclosure to

third parties. No part of this research service may be given, lent, resold, or disclosed to noncustomers
without written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or
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otherwise—without the permission of the publisher.
For information regarding permission, write to:

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© 2021 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan.
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MFD8-19 90

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European Renovation

Wave Strategy Drives

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Global Energy & Environment

The Growth Pipeline™ Company MFD8-19

Section Slide Number

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Section Slide Number

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 Revenue Share, Home Automation Systems Market 28

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Section Slide Number

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Innovative Business Customer Value Chain Transformative Mega

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Competitive Intensity Geopolitical Chaos Disruptive Technologies Industry Convergence

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Innovative Business Models Competitive Intensity Industry Convergence

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install or use. with electrical knowledge. This creates

Source: Frost & Sullivan

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The Innovation GeneratorTM The Growth Pipeline EngineTM

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Geographic Coverage Europe

Study Period 2017–2027

Base Year 2020

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Home Automation Systems Market: Key Growth Metrics, Europe, 2020

Revenue for Last Year Base Year Growth

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17.2% 100+ 7 43.7%

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Home Automation Systems Market: Distribution Channel Analysis, Europe, 2020

70.0% 13.0% 17.0%

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Home Automation Systems Market: Growth Drivers, Europe, 2021–2027

Driver 1–2 Years 3–4 Years 5–7 Years

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Innovative and flexible business models that appeal to customers

Occupant’s comfort and convenience Medium Medium Medium

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Home Automation Systems Market: Growth Restraints, Europe, 2021–2027