The rising energy costs and demographic change will spur the market for smart home solutions in Germany, the Association for Electrical, Electronic and Information Technologies (VDE) said, predicting high growth volume until 2025.
In a scenario for 2025 VDE says that in about ten years’ time smart home solutions will be part of the basic equipment of upmarket flats and houses, in particular new homes. Applications will range from everyday assist systems to luxury applications, with integrated energy efficiency and energy management features. Ambient Assisted Living applications will be geared to the growing number of elderly people in Germany, the association forecasts.
VDE sees great potential for German companies in the growing global smart home market. The association refers to estimates by Research and Market saying worldwide world market volume would double compared to 2011 to USD 36 billion in 2016 not including the market opportunities for smart building technology (Gebäudetechnik). According to a study commissioned by the Federal Ministry of Economics and Technology (BMWi), the total turnover for smart home solutions is estimated to reach EUR 19 billion by 2025, VDE says.
Yet obstacles for investment like varying standards, a lack of information and knowledge as well coordination between the market players currently impairs market growth.
Simple plug-and-play solutions were key for market penetration, VDE says. To this end the association and partners from industry and research launched “Smart Home + Building”, a certification programme, sponsored by BMWi. The programme aims to facilitate a smooth interplay of all the components for the smart home and building sector, providing certificates for plug-and-play applications that can be used across systems (systemübergreifend)
In February VDE had presented a study on smart grids (see link below), calling for a smart supply concept for grids and electricity markets as well as amendments to the regulatory framework.