A recent study by Allied Market Research found that the global smart home and buildings market is expected to grow at a compounded annual growth rate (CAGR) of 29.5 percent between 2012 and 2020. The market revenue of $4.8 billion in 2012 is expected to mushroom to $35.3 billion by 2020, and North America is expected to generate revenue of $12.4 billion by 2020, growing at a CAGR of 25.9 percent from 2013 to 2020.

Energy efficiency has become the watchword. The construction business, especially, is embracing the energy-efficiency trend with building automation systems in smart homes and buildings.

The revenue from safety and security applications is expected to reach $6.1 billion by 2020 with an expected CAGR of 34.6 percent from 2013 to 2020.

Shreyas Naidu at Allied said this market is expected grow due to security concerns and enhanced safety features that smart automation systems can offer. 

“With an increase in the working population, a safety concern with respect to aged parents and children is the biggest challenge,” Naidu said. “Smart homes address these issues with highly sophisticated remote monitoring technologies.”

However, factors—such as high upfront cost, lack of standards and interoperability—are expected to restrain market growth. 

The report also profiles some of the key players in the market.