"Smart Strategies, Giving Speed to your Growth Trajectory"
The global smart home market size was USD 86.48 billion in 2020. The market is expected to grow from USD 99.89 billion in 2021 to USD 380.52 billion in 2028, growing at a CAGR of 21.1% during the 2021-2028 period. The growing number of internet users, rising disposable income of consumers with developing economies, the increasing importance of home monitoring in remote areas, and the growing demand for low-carbon emission and energy-saving-oriented solutions are projected to drive the market capabilities. Based on our research, the global market exhibited a substantial growth of 14.1% in 2020 compared to the average year-on-year growth during 2017-2019.
The market scope defined as products and solutions offered by companies including Schneider Electric SE EcoStruxure Security Expert, Cisco Systems LAN access Switches, Honeywell International Inc.’s Video Analytics & Surveillance Software and Johnson Controls GAW R-407C Air Conditioners, among others. A smart home is an automated home setup that includes a wide range of products, including smart lighting, home security, smart appliances, smart entertainment, and others.
COVID-19 Pandemic to Boost Market Growth
COVID-19 has interrupted regular life and caused individuals, organizations, and governments to modify their policies, priorities, and actions. These developments are acting as a stimulus for technological advancement and innovation. However, in recent years, the home automation business has grown rapidly, a trend aided in part by COVID-19 and the fact that people have been forced to spend more time in their homes owing to lockdown restrictions. As a result, more vendors have entered the industry. The market has developed and now covers a wide variety of midrange and entry-level, low-cost home automation products, the availability of which has increased due to factors such as more businesses joining the market and a higher proportion of online and internet sales.
Further, as more people work/study from home, numerous IoT gadgets are projected to offer a more comfortable work/study environment during and post-pandemic. Home would have a distinct meaning for consumers in the post-covid world: it would be a space for work, entertainment, and study. As a result, families are increasingly seeking products and solutions that make life more comfortable, meaningful, and provide a higher quality of life. These dynamics have opened up a vast market for home furnishings and smart home solutions and is likely to drive the market growth.
Request a Free sample to learn more about this report.
Increasing Adoption of Home Automation Technologies to Propel Market Growth
Traditional home systems were developed to work with a limited amount of connectivity. Users were also limited to operating systems inside a certain range. However, the rise of smart home technology is opening up a world of possibilities. It has taken use of connectivity to provide owners with remote access to their homes. According to Investopedia, globally, there are an estimated 175 million smart homes. The latest application trend combines A.I. and automation to provide domestic assistance in an innovative and new way. These most recent innovations ensure sophisticated technical gadgets as well as security. Smart houses have installed video door alarms, facial recognition devices, ultra-modern burglar alarms, and remote-controlled locks as some of the most popular security options.
Increased Adoption of Internet of Things (IoT) Solutions to Boost Market Expansion
The IoT platform is one of the most significant global economic drivers for the smart home market growth. At home, IoT-based equipment provides energy-saving features. According to GSMA Intelligence, the IoT connections are expected to reach approx. 25 billion globally by 2025, up from 10.3 billion in 2018. This factor shows that within some years, there would be massive clusters of sensors, devices, and things that would communicate through high-speed technology such as 5G. Such a growing proliferation of the internet of things devices is likely to drive the market towards a higher growth trajectory.
Key firms are concentrating their efforts on the development of IoT platforms and related technology (Machine Learning, Artificial Intelligence, and so on) that may be employed in smart home goods. According to a report published by Bosch in May 2021, 10 million products in 2020, – including power tools, residential appliances, and heating systems – were already connected. By the end of 2021, that number will have nearly doubled. Bosch is aiming to establish a strong position in the smart product's market for connected security and climate-control solutions by making the home even more user-friendly. Thus, the growth in IoT adoption will certainly help to boost the global market in the near future.
High Security Threats to Hamper Market Growth
The significant obstacle to market expansion is the rising cyberattack in high-end connected technology. Smart home technology faces the risk of security threats from all the connected endpoints. As intelligent technology is connected to every system and device in the home, hackers can gain confidential and personal information if it is not secured properly. According to Rambus Incorporated, a designer, developer and licenser of chip interface technologies, approximately 80% of IoT devices are vulnerable to a number of assaults. Connecting historically "standalone" smart devices like lights, appliances, and locks clearly brings lots of new cyber security concerns. Even connected baby monitors are vulnerable to digital intruders, as a number of frightened parents discovered after hackers communicated with their young children via a hacked device. This is expected to hamper market growth during the forecast period.
To know how our report can help streamline your business, Speak to Analyst
Rising Wireless Communication and Cellular Technology Adoption to Support Market Growth
Based on product, the market is classified into home monitoring/security, smart lighting, entertainment, smart appliances, and others (thermostat, smart plugs, smart power strips, smart meters, and others).
Amongst them, entertainment is expected to hold the highest smart home market share during the forecast period. Wireless communication and cellular technology advancements. Wireless communication and cellular technology advancements are major components driving the market growth. It will help to boost the market forward.
Smart appliances, such as smart refrigerators, air conditioners, and washing machines, are built with cutting-edge technology that allows them to operate efficiently while consuming less energy. The market's growth will be fueled by factors such as major advancements in technologies such as cellular and networking technologies, IoT, and others. There is an increasing demand for value-based, and on-demand home automation solutions as the adoption of cloud-based systems grows.
Asia Pacific Smart Home Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
In terms of region, the market is divided into North America, Asia Pacific, Europe, the Middle East & Africa, and Latin America.
Asia Pacific is predicted to grow with the highest CAGR during the projection period. The increasing demand for automation solutions from residential applications is projected to drive growth in this region. The region's major players are focusing on cooperating with other well-known companies to create and deploy innovative smart type of home products.
For instance, in January 2020, Vivint Smart Home, Inc. and Mosaic Acquisition Corp. announced a merger. The aim of the merger was to make the organization a publicly-traded company along with enhancing the smart home platform offerings. According to a June 2021 report by the government of India’s Press Information Bureau, India sets targets, preparing to expand to 4,000 cities in two years, transforming the smart city mission (SCM) into a mass-expansion movement, and aligning the national program with smart cities to maximize benefits.
North America is expected to hold the largest market share during the forecast period. This growth is backed by the strong presence of major players, including Crestron, Amx, Honeywell International Ltd., and Control4 Corporation, operating in this market. Also, factors such as the increasing adoption of core communication technologies, namely Wi-Fi, Bluetooth, Zigbee, NFC, and the upcoming 5G network, are boosting the growth of the market. Key companies in this region are focused on entering into strategic mergers and acquisitions to expand their business units worldwide.
Further, the smart type of home ecosystem is rapidly expanding, and existing solution providers are producing solutions. The major players in the market are expanding product portfolios through mergers and acquisitions and investing in cutting-edge technology. In 2018, Amazon.com, Inc. acquired Ring LLC, a smart home firm, to enhance its solutions and offerings. The ring is the provider of internet-connected doorbells and cameras.
In Europe, market growth is being driven mostly by the expansion of small businesses and increased investment by major corporations in nations such as Germany, the U.K., France, and others. The increased need for smart security and monitoring systems in this region is fueling this growth. These factors will aid in the market's development, hence promoting the market's global expansion.
To know how our report can help streamline your business, Speak to Analyst
The MEA and Latin American markets are likely to increase at a steady rate. Governments and local players are likely to increase their initiatives and investments, resulting in continued growth. According to a Ciena study report published in June 2021, more than half of adults in the Kingdom of Saudi Arabia (57%) and the UAE (54%) believe the future of the internet would be driven by their desire to become more energy efficient. A vast number of people in both countries (94 percent in each) are considering conducting more virtual activities to decrease their carbon impact. In addition, the adoption of smart type of home systems and consumption control devices is on the rise (40 percent in the UAE and 46 percent in the KSA). As a result of these key market trends, metro and edge networks are being asked to meet the ever-increasing demand. In order to become more efficient and reduce energy consumption, the network must obviously evolve according to consumer demand.
Key Players Focus on Developing Advanced Security and Energy Usage Monitoring Solutions
The major players in the market are Emerson Electric Co., Samsung Group, General Electric, Honeywell International, and Schneider Electric SE, amongst others. To give advanced products and services to their clients, the corporations are investing in R&D. For instance,
Other industry companies are also launching advanced home solutions, which will help the market grow even further. These cutting-edge technologies are targeted at enhancing comfort, energy efficiency, and security.
An Infographic Representation of Smart Home Market
To get information on various segments, share your queries with us
The global smart home market research report includes a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and leading product applications. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
Value (USD billion)
Fortune Business Insights says that the market value stood at USD 86.48 billion in 2020.
By 2028, the market size is expected to reach USD 380.52 billion.
The market is expected to grow at a stellar CAGR of 21.1% in the forecast period (2021-2028).
Increased adoption of internet of things (IoT) solutions is the key market driver.
The market in Asia Pacific was valued at USD 25.10 billion in 2020.
Within the products criteria, the entertainment segment is expected to lead this market during the forecast period.
Honeywell International, ABB Ltd, Control4 Corporation, General Electric Company, and Samsung Group are the top players in the market.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry