Gulf Cooperation Council Home Automation Market 2016-2020

Market overview of home automation in GCC

Technavio’s market research analyst predicts the GCC home automation market to grow at a CAGR of more than 14% during the forecast period. The increased need for energy conservation in GCC is a key growth driver for this market. During 2015, the annual per capita energy consumption accounted to around 11.5 MWh in the GCC, which was much higher than other developed economies such as France, Japan, Italy, the UK, and Germany. As a result, governments in the region have called for conservative strategies in residential, commercial, and industrial buildings to solve power crisis. The use of HVAC controls, lighting controls, and other similar building automation solutions throughout the lifespan of the building can conserve power and minimize power wastage.

Rising indoor air quality concerns is another factor propelling the growth of this market. According to WHO and the CDC, the GCC nations have the largest and widest variety of pulmonary diseases. The predisposed conditions such as harsh climate and allergens can cause exacerbations of bronchial asthmas. WHO has also reported high incidences of bronchial asthma and pneumonia in children in this region due to exposure to fine particulate pollutants in closed spaces. Awareness about these conditions has prompted individuals to implement automated HVAC equipment, which helps to purify the living environment. Automated HVAC control systems have distinct advantages such as low energy consumption and operational costs, and ensure optimum quality of the environment with ease and operational flexibility.

Segmentation by solutions of the GCC home automation market

• Lighting control
• Security and access control
• HVAC control
• Fire and safety control
• Services

The services segment accounted for the largest market share in the market during 2015. The service segment includes the revenue generated from system integrators, cost and implementation of BEMS (software and hardware), and maintenance and support. The primary components of BEMS reside in one central station, remote outstations, and online connections between remote outstations and the central control unit. The software provides control functions to optimize a building's energy performance. BEMS can achieve 10%-20% energy conservation compared to independent controllers for each system.