Zigbee Market Size, Share, and Industry Analysis, By Device Type (Zigbee Home Automation, Zigbee Light Link, Zigbee Smart Energy, and Others), By Application (Home Automation, Industrial Automation, Telecommunication Services, Healthcare, Retail Services, and Others), and Regional Forecast till 2032

The global Zigbee market is growing rapidly due to increased usage of ZigBee technology in embedded applications, alarm systems, industrial control, and home automation, owing to its affordability and minimal energy usage. Zigbee is a system that enhances communication between devices or people and transmits information through a wireless connection. Furthermore, the rising interest in smart cities and smart homes worldwide is fueling the need for smart consumer electronics and connected devices that utilize ZigBee technology, leading to an increase in the ZigBee market.

Impact of Generative AI on the Zigbee Market

Generative AI is transforming Zigbee technology by improving device creation, optimizing functionality, and enhancing compatibility. AI speeds up the development of efficient firmware and software for Zigbee devices, reducing time-to-market and enhancing functionality. It evaluates information from Zigbee networks to recognize patterns, forecast problems, and enhance performance, ultimately improving network management. This advancement highlights the growing synergy between AI and Zigbee technologies. For instance,

• In 2024, at Embedded World, Qualcomm unveiled fresh innovations that combine AI with Zigbee technology. Their QCC730 micro-power Wi-Fi SoC includes Zigbee support and adds AI functionality to IoT devices. 

Zigbee Market Driver

Rising Adoption of Smart Devices is the Key Factor Driving Global Market Growth

The rise in smart home gadgets is boosting the Zigbee market by growing the need for dependable, low-energy connectivity. Zigbee is perfect for overseeing extensive networks of connected devices in smart home ecosystems, offering seamless integration and high performance due to its mesh networking and energy-saving features. This increased demand for advanced smart home setups highlights the importance of robust connectivity solutions. For instance,

• As per Parks Associates, 45% of U.S. internet households now have at least one smart home device, and 18% of these households have adopted a more advanced setup, owning six or more smart devices.

Zigbee Market Restraint

Interference Issues Hamper Market Growth

The interference problems are a major hindrance to the expansion of the ZigBee market. ZigBee works in the 2.4 GHz frequency range, which is also widely used by Wi-Fi, Bluetooth, and microwave ovens. In places with a large number of wireless devices, the chances of signal interference are significantly rising. For instance.

• As per Haade, Both ZigBee and Wi-Fi channels function within the 2.4 GHz bandwidth, with frequencies in proximity that may result in interference due to channel configurations. When operating a ZigBee network and a Wi-Fi network simultaneously on the same frequency, they will disrupt each other. The initial impact will be on the Zigbee network.

Zigbee Market Opportunity

Energy Management Solutions Create an Opportunity for Zigbee

With a growing focus on energy efficiency and sustainability, ZigBee-enabled devices are ideal for smart grid and energy management systems, offering live monitoring and control of energy usage. For instance,

• In 2024, The Connectivity Standards Alliance releases green power 1.1.2 for Zigbee-based Energy-harvesting technology. Zigbee Green Power devices are simpler than full-fledged network devices.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by the Key Players
• Impact of Generative AI on the Global Zigbee Market
• Consolidated SWOT Analysis of Key Players

Analysis by Device Type

By device type, the market is divided into Zigbee home automation, Zigbee light link, Zigbee smart energy, and others.

The market share in the Zigbee Home Automation segment is dominated by the increasing popularity of smart home technologies and the rising use of devices such as smart lights, thermostats, and security systems. Consumers are attracted to Zigbee home automation due to its ability to work with a variety of devices, providing flexibility and easy Integration. Furthermore, the popularity of these devices is further boosted by their energy efficiency, resulting in reduced energy costs and longer battery life. For instance,

• As per IoTNow, Houseowners utilizing smart thermostats and energy monitoring systems often see a reduction in utility bills ranging from 5% to 22%.

Analysis by Application

By application, the market is divided into home automation, industrial automation, telecommunication services, healthcare, retail services, and others.

In the Zigbee industry, the home automation category usually holds the largest market share. The rising consumer desire for smart home technologies is the main driving force behind this leadership. The appeal of home automation has greatly increased due to the ability to control different household devices, such as lighting, heating, and security systems, through one cohesive platform. For instance,

• In 2023, there was a rise in the purchase of smart home gadgets by Russians - there was an increase in the popularity of robotic vacuum cleaners, smart speakers, sockets, remote controls, lighting fixtures, curtains, as well as complete security systems (motion detectors, smoke alarms, water leak detectors, and video cameras)

Regional Analysis                        

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In terms of geography, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America leads the ZigBee technology market due to its prompt integration of smart home devices, a reliable IoT infrastructure, and effective regulatory backing. The participation of major market players and increasing energy management efforts enhance North America's dominance in the ZigBee market. For instance,

• In 2023, Somfy North America introduced Zigbee 3.0 integration for its new smart shading ecosystem. The ecosystem will power shades, blinds, and curtains, offering reliable and energy-efficient smart home solutions.

Europe holds the second-largest market share of Zigbee. It is driven by strong regulatory frameworks and environmental initiatives as the EU focuses on energy efficiency and smart grid development. For instance,

• As per the European Commission, in 2023, There are 22 million smart homes in Europe. The UK, Germany and France are the leading countries in Europe, followed by Italy and Spain.

Asia Pacific is experiencing rapid growth in the Zigbee market. It is driven by increasing urbanization, rising consumer demand for smart home devices, and significant investments in smart city initiatives. For instance,

• In 2024, China released a set of guidelines to enhance the growth of smart cities and urban digital transformation in order to improve urban management.

Key Players Covered

The global Zigbee market is fragmented, with the presence of a large number of groups and standalone providers. In the U.S., the top 5 players account for only around 23% of the market.

The report includes the profiles of the following key players:

• Digi International Inc (U.S.)
• GreenPeak Technologies (Netherlands)
• Intel Corporation (U.S.)
• Microchip Technology (U.S.)
• NXP Semiconductors (Netherlands)
• Qualcomm Incorporated (U.S.)
• Sena Technologies (U.S.)
• Silicon Laboratories (U.S.)
• STMicroelectronics (Switzerland)

Key Industry Developments

• In 2024, Fibocom partnered with STMicroelectronics to introduce a smart home solution utilizing Matter-compatible technologies, STM32WB55 and FG370. It guarantees the centralized management of smart home devices utilizing various protocols, enabling seamless interaction between them.
• In 2024, Trident IoT revealed its latest Zigbee chip and developer-centric SDK at the Connectivity Standards Alliance 2024 Member Meeting. This new offering seeks to make IoT development easier and faster, emphasizing enhancing efficiency and decreasing time-to-market.