The IoT and Home Automation Market Is Growing in Double Digits
The market for home automation products will be one of the most promising and growing sectors in the world, with an annual rate of nearly 16%, according to "Statista". North America is currently the market leader in the integration of intelligent automation systems, but in the next few years Europe will catch up and is even expected to become the leader in a number of associated equipment. The number of households in Europe introducing smart home automation devices is expected to grow at an average annual rate of 22.3% and to have 83.2 million smart homes in 2023.
Technological progress means that IoT technology (Internet of Things) is becoming easier to implement and is opening the door to a greater variety of companies which take advantage of its applications.
Against the background of giants like Google and Microsoft, a company created by Bulgarians is currently present on the world IoT scene - the holding "Alterco" AD (Allterco, abbreviated by All Teracomm Companies). It has clients in Europe, Asia and America, its leading markets are those in the Old Continent, namely Germany and Italy.
For the past year, Alterco's subsidiary, Alterco Robotics, with a focus on IoT technologies, has seen revenue growth of 124 percent. The company's miniature and functional home automation devices are attracting more and more customers and according to the holding company data, a customer who has purchased once, returns an average of five to seven times and buys more products. The company is also an approved supplier of Deutsche Telekom for a new generation of smart devices - NarrowBand IoT (NB-IoT).
By 2021 one million homes will be automated by Alterco devices according to the forecasts.
The holding plans to offer a new series of devices on the market next year. Currently, five or six new technologies are being tested, and the release of industrial Shelly devices is also planned.
The good analysis of the situation in the midst of the Covid-19 crisis and the components production export in Bulgaria enabled Alterco to ensure continuity of production and supply, which also affected the pace of sales.
At the end of the first quarter of this year, the holding reported 140% average annual growth in sales revenue compared to the same quarter of 2019.
In 2013, the development of products in the IoT sector began, and in 2015 one of the leading companies in the Alterco family was established - the subsidiary Alterco Robotics.
Since December 2016, Alterco AD has been a public company and the holding shares are traded on the Bulgarian Stock Exchange AD. After the declaration of the state of emergency in March, the prices of these securities have been going up and are now trading at BGN 3.80 per unit and the market capitalization of the company has jumped to BGN 57 million.