Market Trends of ZigBee Industry
The Residential Automation Segment is Expected to Hold a Significant Share of the Market
- As the burden on available resources increases owing to urban population growth, there is a need for resource monitoring. As the Internet of Things (IoT) can gather data from sensors embedded in smart devices, it serves as the foundation for digital services that can aid in developing smart cities. IoT has given rise to many linked smart gadgets that are quickly becoming indispensable in modern households. The World Bank expects smart cities to contribute around 60% of global GDP by 2025.
- Smart buildings can also be linked to a smart grid, allowing smart building components and the electric grid to interact. This technology allows for more effective energy distribution, proactive maintenance, and swifter power outage resolution. The increased use of connected devices has resulted in the adoption of ZigBee, which aids in the proliferation of smart hubs. Amazon Echo, Google Home, Insteon Hub Pro, Samsung SmartThings, and Wink Hub are examples of smart home hubs.
- In addition, Tuya, a global vendor of tailored IoT platforms, provides a smart home automation hub. The technology will be equipped with Pegasus technology, which enables multiple smart home devices and comes with a Gigabit router and ZigBee gateway. Apart from platform and technology vendors, appliance manufacturers are incorporating ZigBee technology in their offerings. For example, XAL, an electronics manufacturing company whose major offerings are lighting systems, is increasingly offering ZigBee open communication standards along with DALI in its offerings.
- Furthermore, the Internet of Things (IoT) is rapidly becoming a reality, fueled by the rising significance of smart home gadgets and a surging consumer appetite for automation, aiming at both convenience and energy efficiency. The concept of connected living is taking center stage, primarily due to its capacity to bolster home residents' security. Notably, technological strides are spurring the uptake of these smart devices, which have a diverse array of applications within the connected home framework.
- Further, according to the US Census Bureau, the number of housing units in the United States has been growing Y-o-Y, and there were approximately 144 million homes in the past year. Further, in August 2023, approximately 114,200 home constructions started in the United States. Such a rise in residential construction is expected to create an opportunity for the studied market to grow. According to the 2024 State of Digital Nomads, London was the most visited city by digital nomads as of March 2024, accounting for roughly 2.3% of trips by digital nomads across the world. Such developments toward digital nomads are expected to drive the market studied.
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North America is Expected to Account for the Most Significant Share in the Market
- North America is one of the prominent markets, owing to the growing need for advanced technology by numerous end-user industry players in the region. Additionally, the evolution of high-speed networking technologies in the area is aiding the market's growth. The retail sector is embracing domotics and automation for smart homes. It has a home automation system that controls the lights, entertainment system, appliances, and house climate. For instance, Philips Lighting Holding BV offers Hue, a smart lighting system that can see when residents are in the room and adjust lighting as needed.
- The IT and telecommunications sector is poised to dominate the market, driven by a rising appetite for network hardware integrating the ZigBee protocol. Silicon Labs' chips in products like Samsung's Smart Hub and Google's Wi-Fi router support BLE and ZigBee Pro. Furthermore, the ZigBee Alliance's "All Hubs Initiative" aims to bolster reliability, interoperability, and security across ecosystems. Adding to this momentum, D-Link unveiled its newest solutions featuring ZigBee technology.
- ZigBee's residential automation segment is expected to hold significant demand. An increasing number of vendors are incorporating technology into their offerings and forming alliances with other vendors. Further, according to the US Census Bureau, in August 2023, approximately 114,200 home constructions started in the United States. Such huge construction of new residents in the country would create an opportunity for the market studied to grow.
- The increasing use of IoT in healthcare is helping optimize operations. It offers vital solutions, such as remote monitoring. The usage of these solutions in the sector assists in providing better patient care. The solutions also empower physicians to deliver superlative care by increasing patients' engagement. Governments across the world are increasingly spending on healthcare to make sure that the healthcare benefits reach even the remotest places. This technology enables the healthcare systems to work efficiently. For instance, according to the OECD, the US government spent 16.9% of its GDP on healthcare.
- Further, the advancements of ZigBee would propel the adoption in the region. For instance, in ZigBee 3.0, the ZigBee Cluster Library (ZCL) contains all available clusters and thus provides a complete toolbox from which all devices take their clusters and associated functionality. The ZigBee 3.0 software stack incorporates a 'base device' that provides consistent behavior for commissioning nodes into a network. Further, ZigBee 3.0 supports the increasing scale and complexity of different wireless networks and muddles through large local networks of over 250 nodes. Additionally, ZigBee 3.0 provides enhanced network security.
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