The number of households in Europe using smart home technology hit 8.5 million at the end of 2016, according to new research.

Berg Insight said 1.4 million households had “whole-home” systems, while there were 9.5 million individual smart home solutions across the continent.

Berg said this equated to 3.8 percent of households in Europe having some form of smart home technology.  

Overall, 4.8 million more smart home solutions were sold in 2016 versus 2015.

The most successful products include smart thermostats, security systems, smart light bulbs, network cameras and multi-room audio systems.

Smart home revenues grew 69 percent to €2.7 billion, according to the analyst firm.

Berg said the market is forecast to reach 80.6 million smart homes, or 36 percent of all households, by 2021, with revenues set to reach €20.1 billion.

However, the European market is still “a few years behind” North America in terms of penetration and market maturity, the analyst house said.

North America is the world’s most advanced smart home market with 21.8 million households, or 16.7 percent of the total, at the end of 2016, a year-on-year increase of 47 percent.

It will grow to 73.0 million by 2021, or 55 percent of all households, while revenues will grow from €9 billion in 2016 to €25 billion.

Anders Frick, Senior Analyst at Berg Insight, said: “2017 is anticipated to be a good year for smart home technology as entry-level smart home systems have become affordable for the mass market, at the same time as the reliability and features have improved significantly."

Read more: Give marketing control of the smart home, Deutsche Telekom’s experience suggests

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