By 2025, the world’s largest home automation company will be home automation pioneer Philips, according to a new report.
Philips, the largest manufacturer of lighting systems and accessories, will make its first acquisitions in 2017 as part of a $2 billion bid for the company, according the report from investment firm CB Insights.
Philips has a long-term partnership with Nest, but it’s expected that Philips will use Nest to sell its products, rather than simply as an end user.
Philips will also be looking to acquire companies that make products for smart home automation and home automation devices, according CB Insight.
Philips is looking for “a robust portfolio of smart home technologies, including products for autonomous vehicles, intelligent thermostats, smart thermostat control, and smart home products,” the report said.
Philips’ move into the home automation business has been a long time coming, but its success at Nest is a major development in the smart home world.
Philips acquired Nest for $3.6 billion in January 2016, but the two companies have not worked together on product development since then.
Nest acquired Nest in February 2018.
Philips also owns Nest Labs, a company that has been focused on smart home projects for years, but also has a history of spending heavily to acquire large companies.
CB InsIGHT’s report cites a number of reasons why Philips will be looking for a strong portfolio of lighting technologies in its home automation portfolio.
The report cited Philips’ need for “more robust home automation systems and equipment.”
Philips also needs to “develop products that are affordable to consumers.”
Philips’ focus on home automation will likely lead to the acquisition of other companies in the industry, including Nest.
Philips plans to sell a variety of products including smart home bulbs, smart lighting solutions, and sensors that will help it provide the most accurate and accurate home automation information to customers.