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.

End-user segmentation of the GCC home automation market

• Apartment
• Villa

Apartments accounted for a majority of the market share during 2015. Due to rise in population, there has been an extensive diversification and growth in the real estate and construction sectors in the GCC. Various apartment units are being built based on the mandatory green building and energy conservation policies in the area. This necessitates the adoption of home automation systems and solutions. Apartment complexes benefit mainly from home automation systems, such as BEMS, which reduce energy consumption and optimize resources.

Competitive landscape and key vendors

The competition between the vendors present in the GCC home automation market is intense. Large international vendors generate revenue through indirect sales via local representatives and certified distributors/dealers and integrators. The GCC end-users prefer these vendors due to their high brand value, history, and expertise in building automation technology. These vendors offer a range of building automation products and solutions such as integrated lighting controls, HVAC controls, BEMS, and others, designed and engineered for the residential purpose. Also, major vendors are adopting M&A to enhance offerings and services in the home automation market. This trend is expected to revolutionize the market with better offerings and services in the future.

The leading vendors in the market are -

• Honeywell
• Johnson Controls
• Schneider Electric
• Siemens

Other prominent vendors in the market include ABB, Azbil, Bosch Security System, Control4, Distech Controls, Eaton, GE, Legrand, Lutron, Sauter, and United Technologies.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the GCC home automation market?
• What are the key market trends impacting the growth of the GCC home automation market?
• What are the challenges to market growth?
• Who are the key vendors in this market space?
• What are the market opportunities and threats faced by the vendors in the GCC home automation market?
• What are the key outcomes of the five forces analysis of the GCC home automation market?

Technavio also offers customization on reports based on specific client requirement.

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