Smart Homes Market

Smart Homes Market Overview

The market for Smart Homes Market is forecast to reach $135.3 billion by 2027, growing at a CAGR of 11.9% from 2022 to 2027. The Smart Homes market is estimated to witness substantial growth over the forecast period primarily due to the increase in adoption of internet users and the growing adoption of smart devices is driving the market growth of smart-homes market. A smart-home is a residence that uses internet-connected devices to enable the remote monitoring and management of appliances and systems such as smart lighting and heating. The advantage of smart homes is energy efficiency, customization and ease of use. Smart home technology requires a Smartphone application or web portal as a user interface to interact with an automated system. This technology is applied to devices light bulbs and switches, Thermostats, kitchen appliances and gadgets, outlets and plugs, security cameras etc. The increasing importance of the need to security issues is anticipated to increase the demand for smart homes over the forecast period.

Report Coverage

The report: “Smart Homes Market- Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Smart Homes Market.

By Product - Lighting Control, Security and access control, HVAC Control, Entertainment and Other controls.

By Technology - Cellular Network, Protocols and Standards and Wireless Communication Technologies.

By Geography - North America (U.S, Canada, Mexico), Europe(Germany, UK, France, Italy, Spain, Russia, Netherlands and Others), APAC(China, Japan India, SK, Australia, Indonesia and Others), South America(Brazil, Argentina, Chile, Colombia and others), and RoW (Middle East and Africa).

Key Takeaways

• Smart homes market is estimated to witness substantial growth due to an increase in adoption of internet users and growing adoption of smart devices driving the market growth.
• The introduction of innovative wireless technologies such as HVAC controllers, security and access regulators, and entertainment controls expected to drive the market growth.
• The increasing importance of security issues is expected to drive the market growth in the forecast period.
• Asia-Pacific is estimated to lead the market during the forecast period due to rapid urbanization and continuous increase in the population and strong economic growth encouraging customers towards sophisticated infrastructure driving the market growth of smart homes.

The market segment by product into lighting control, security and access control, HVAC control, entertainment and other controls. The leading segment in terms of revenue is security followed by lighting control which is due to organized players such as Zicom, Honeywell and Bosch leads the market in this segment. Lighting control plays an important role in smart homes it enables users operate manually and automatically. Through automation feature helps in reduce energy costs and improve sustainability and generates data via measuring or monitoring. Security and access control helps in authentication and authorization of a person and makes sure if they have appropriate access to enter the premises.

The smart homes market by technology has been segmented into cellular network, protocols and standards and wireless communication technologies. Wireless communication technologies are the leading segment in terms of revenue due to the development of technologies, applications and markets. The increasing worldwide penetration of the Internet of Things, cellular IoT has become one of the significant growth contributors for smart home market. Cellular IoT allows devices to interact with each other and has become common practice in households with smart assistants to use voice commands to control thermostats and electronic devices. The devices can be controlled is dependent on the control protocols.

The smart homes market by geography has been segmented into North America, Europe, APAC, South America and Row. North America is estimated to hold the largest market size, owing to the presence of major players and rising demand for home healthcare and high disposable income. Asia-Pacific is expected to dominate the smart home market during the forecast period owing to the increasing growth of the smart home industry and the large-scale implementation of hardware and software solutions in developing economies such as China and Japan. The rapid urbanization, continuous increase in the population and strong economic growth is encouraging customers towards advanced infrastructure which is driving the market growth in Asia-Pacific. China, one of the largest smart homes market in Asia-Pacific is focusing on advanced technological development to capture the changing demands of the customers which will further increase the market growth.

Smart Homes Market Drivers

Increase in adoption of smart devices for conservation of energy to boost market growth smart

home systems and devices help save energy by allowing the user to monitor and control energy usage in new ways. Smart devices like smart plugs, smart meters and thermostats help in saving power consumption when not in use. The devices will keep track of which rooms has occupants and makes sure that the temperature in them is sufficiently warm when one uses them. On the other hand many countries like China, South Korea, Canada, India and Germany are adopting green building policies. The governments of these countries are putting forward many smart city projects and taking initiatives to develop green buildings for sustainable living. Such initiatives stimulate to adopt smart devices which help in energy conservation in smart homes.

Increase in number of internet users and the growing adoption of smart devices

Adoption of smart devices is one of the major factors driving the market growth of smart homes. Smart devices like smart TVs, smart home theatres, fitness bands and gadgets like Amazon echo, Alexa and Google home are accelerating the market demand. As smart devices adoption is increasing it is likely to increase the demand for internet users as they are both interconnected to each other. Smart devices are interconnected through internet and allow users to control functions such as security access to home, temperature, lighting, HVAC control and entertainment. Smart devices help easily in multitasking, empowers users to instantly get answers and information, helps in creating reminders and appointments and many more. The increase in usage of internet and smart devices is likely to be high in the future which boosts market growth of smart-home market.

Smart Homes Market Challenges

Lack of Interoperability

Interoperability is the one of the biggest problem in smart home technology. Installing many devices and platforms leads to miscommunication between the gadgets. For instance, a manufacturer such as Amazon likes to design devices made for their related platform Echo or Alexa but the technology of these won’t work with non-native systems like Google Home or Apple home etc. Installing devices from different technologies is leading to incompatible issues. One should carefully consider which platform makes sense long-term as they add speakers, televisions and other devices gets connected easily. Buying single brand company products is an option to avoid hours of attempted troubleshooting.

Smart Homes Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Smart Homes Market. The Smart Homes Market is dominated by major companies such as Honeywell International Inc., United Technologies Corporation, Schneider Electric, Johnson Controls International, Siemens AG, ABB Ltd., ASSA ABLOY, Ingersoll-Rand PLC, Legr and S.A., Comcast Corporation.

Acquisitions/Technology Launches/Partnerships

• In August 2020, Honeywell Inc. partnered with Latch app to create more modern, full building experience. Honeywell thermostats give residents and property managers the ability to remotely control the temperature and oversee energy management.
• In Dec 2019, Schneider Electric launched Easy Homes which is IoT enabled. Easy homes empower customers to manage power in their homes through a single app. It converts homes into a smart home turning every switch and appliance into a connected device.

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