Technavio’s market research analysts predict the global ZigBee home automation market to reach almost $330 billion by 2020.
The growth of the market can be accredited to the rising need to minimize power consumption and subsequent energy tariff. Smart thermostats enable the scrutiny of cooling and heating patterns and also remotely monitor appliances to improve energy conservation. Furthermore, such devices are capable of understanding consumer behavior through self-learning algorithms and can adjust energy consumption accordingly. I
In 2015, the Americas dominated the global ZigBee home automation market by accounting for around 64% of the overall market share. Greater access to the paid content such as Think Broadcast and cable on-Demand coupled with higher penetration of internet-connected content streaming devices such as video gaming consoles and Blu-ray players in region will fuel the growth of the ZigBee home automation market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the ZigBee home automation segments based on the application.
“The growing focus on energy conservation has prompted several government agencies and utilities to improve or build power grid infrastructure through the adoption of smart technology. As a result, government agencies and utilities are transitioning toward AMI, which connects home and neighborhood area networks. AMI extends smart meter technology by enabling electricity, HVAC, and oil and gas service providers to transmit information and commands to or from home for information regarding the time-of-use, pricing, or disassociations regarding remote service,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
Currently, the media segment leads the global market by accounting for around 80% of the overall market revenue. A major part of the revenue is generated from the shipment of ZigBee-enabled STBs. ZigBee STBs serve as a central hub for a smart home and can control various other ZigBee-enabled devices and act as a central coordinator. This is carried out by creating a mesh network through which the connected devices in the smart home can interact with each other.
The key components vendors in the global ZigBee home automation market include Atme, Digi, Freescale Semiconductor, Qorvo, NXP Semiconductors, Renesas Electronics, Silicon Laboratories, STMicroelectronics, and Texas Instruments. The global market is fragmented due to the presence of several vendors, including OEMs and module manufacturers. Suppliers like Silicon Labs are attempting to increase their technology capabilities and consolidate the supply chain market for building and smart home automation or IoT solutions. In November 2015, Silicon Labs acquired Telegesis, a leading supplier of wireless-mesh-based networking modules, for $20 million. Qorvo, an IoT solution provider, acquired GreenPeak in April 2016.
A more detailed analysis is available in the Technavio report, Global ZigBee Home Automation Market 2016-2020.