120 Million Homes in Europe and North America were Smart at the end of 2022
How should the mobile industry address the vast business opportunity in connected smart homes? The analyst estimates that revenues from home automation system shipments and service fees in Europe and North America will grow at a compound annual growth rate of 12.0 percent from US$ 82.2 billion in 2022 to US$ 145.1 billion in 2027. Get a 360 degree perspective on the rapid evolution of the home automation market in this comprehensive 240 page strategy report.
The number of smart homes in Europe and North America reached 120 million in 2022
According to this report, the number of smart homes in Europe and North America reached 120.5 million in 2022. North America is the leading market in terms of penetration and 39.2 percent of all households in the region had at least one smart home product or system at the end of the year which equals to 57.5 million smart homes. During 2022, the number of smart homes in North America grew by 12.0 percent year-on-year. The strong market growth is expected to continue in the next five years. By 2027, the analyst estimates that about 88.1 million homes in North America will be smart, equal to 58 percent of all homes in the region. The European market is still somewhat behind the North American, in terms of market penetration. There was a total of 63.1 million smart homes in Europe at the end of 2022. The number of smart homes in the region is forecasted to reach about 112.8 million at the end of 2027, representing a market penetration of close to 47 percent.
The most popular smart home products include smart thermostats, smart light bulbs, smart security cameras, smart door locks, smart plugs and smart speakers. These products have sold in the hundreds of millions and are marketed by incumbent OEMs such as Signify, Resideo, Danfoss, Belkin, Chamberlain and Assa Abloy and newer entrants such as Ecobee, Mysa, Nuki, Arlo, Netatmo and Wyze Labs. The market for whole-home systems is served by traditional home automation specialists, home security providers, telecom operators and DIY solution providers. On the North American market, interactive home security systems have emerged as one of the most common types of smart home systems. The largest home security providers include ADT, Vivint, Comcast and Telus. In Europe, traditional home automation systems and DIY solutions are more common as whole-home systems. eQ-3, Centrica, Verisure and Somfy are estimated to be the largest vendors of whole-home systems in the region. The installed base of whole-home systems in Europe and North America amounted to 26.5 million systems and 35.7 million systems respectively at the end of 2022.
The smart home market continues to grow as more consumers realize the value of connected products and systems. Developments of new products and services as well as connectivity standards that facilitate setup and control of devices from different vendors are also fostering growth in the market. “The new Matter standard is likely to become a key driver for mass-market adoption of smart home devices in the coming next few years”, says Martin Backman, Principal Analyst. There are also other new industry collaborations, such as the Home Connectivity Alliance (HCA) for connected home appliances, that aim to simplify control of various devices for end-users. Surging electricity prices are also creating demand for smart home solutions that can help households reduce their electricity consumption. “Smart ACs, heat pumps, thermostats and other products that enable households to reduce expenditures are anticipated to increase in popularity over the coming years”, concludes Mr. Backman.
Highlights from the report:
- Insights from 30 executive interviews with market leading companies.
- 360-degree overview of the smart homes & home automation ecosystem.
- Summary of industry trends in key vertical market segments.
- Statistical data on adoption of smart home systems in Europe and North America.
- New market forecasts lasting until 2027.
- Detailed reviews of the latest initiatives launched by industry players.
- Updated profiles of the key vendors in this market.
The report answers the following questions
- Which are the main applications within smart homes and home automation?
- What are the main drivers behind growth in Europe and North America?
- What are the business models and channels-to-market for smart home solutions?
- Which are the leading whole-home system vendors in Europe and North America?
- How are product OEMs and whole home solution vendors positioning themselves?
- Will the new Matter standard become a market catalyst?
- What is the potential market size for cellular IoT in home automation?
- How will the smart home market evolve in the next five years?
Who should read this report?
Smart Homes and Home Automation is the foremost source of information about the emerging market for connected home applications. Whether you are a product vendor, service provider, telecom operator, investor, consultant, application developer or government agency, you will gain valuable insights from our in-depth research.
Table of Contents
Executive Summary
1 Smart Homes and Home Automation
1.1 Introduction
1.2 Types of home automation
1.2.1 Security and access control systems
1.2.2 Energy management and climate control systems
1.2.3 Audio-visual and entertainment systems
1.2.4 Lighting and window control systems
1.2.5 Irrigation and water management systems
1.2.6 Home appliances
1.2.7 Service robotics
1.2.8 Multifunction and whole-home automation systems
1.3 Home automation market segments
1.3.1 Mainstream houses and multi-family dwellings
1.3.2 The custom (luxury) segment
1.3.3 New homes versus existing homes
1.4 Channels to market
1.4.1 Professional installation
1.4.2 Retail
1.4.3 Service providers
2 Networks and Communications Technologies
2.1 Overview
2.1.1 Different approaches to establishing interoperability
2.1.2 Technology choices of product OEMs
2.1.3 Technology choices of whole-home solution vendors
2.2 Smart home networking technologies and standards
2.2.1 Bluetooth
2.2.2 DECT ULE
2.2.3 EnOcean
2.2.4 Home Connectivity Alliance (HCA)
2.2.5 KNX
2.2.6 LPWA
2.2.7 Matter
2.2.8 Open Connectivity Foundation
2.2.9 OpenTherm
2.2.10 Thread
2.2.11 Wi-Fi
2.2.12 Zigbee
2.2.13 Z-Wave
2.3 Smart home ecosystems and hubs
2.3.1 Amazon Alexa
2.3.2 Apple HomeKit and Siri
2.3.3 Google Home and Google Assistant
2.3.4 Home Connect Plus (Bosch)
2.3.5 Homey
2.3.6 IFTTT
2.3.7 Mediola
2.3.8 Olisto
2.3.9 Samsung SmartThings
2.3.10 Yonomi (Allegion)
2.4 Smart home platforms
2.4.1 Alarm.com
2.4.2 Alibaba
2.4.3 AWS (Amazon)
2.4.4 Ayla Networks
2.4.5 Microsoft
2.4.6 OBLO Living
2.4.7 ThroughTek
2.4.8 Tuya
3 Technology Providers and OEMs
3.1 Market overview
3.1.1 Point solutions - an entry into the smart home
3.1.2 Smart home strategies for product OEMs
3.1.3 New entrants challenge incumbents with connected products
3.2 Security and access control system vendors
3.2.1 Arlo Technologies
3.2.2 Assa Abloy
3.2.3 Canary (Smartfrog Group)
3.2.4 Chamberlain Group
3.2.5 Ezviz Network (Hikvision)
3.2.6 Frontpoint
3.2.7 Kwikset
3.2.8 Logitech
3.2.9 Minut
3.2.10 Nuki Home Solutions
3.2.11 Reolink
3.2.12 Ring (Amazon)
3.2.13 Schlage
3.2.14 Simplisafe
3.2.15 Wyze Labs
3.2.16 YI Technology
3.3 Energy management and climate control system vendors
3.3.1 Danfoss
3.3.2 Ecobee (Generac)
3.3.3 Toon (Eneco)
3.3.4 Eve Systems
3.3.5 Google Nest
3.3.6 Lux Products (Johnson Controls)
3.3.7 Mysa
3.3.8 Netatmo (Legrand)
3.3.9 Sensibo
3.3.10 Tado
3.4 Audio-visual and entertainment system vendors
3.4.1 Bose
3.4.2 Harman (Samsung Electronics)
3.4.3 Kaleidescape
3.4.4 Naim Audio
3.4.5 Sonos
3.4.6 Sound United (Masimo)
3.5 Lighting and window control system vendors
3.5.1 Acuity Brands
3.5.2 Belkin
3.5.3 iDevices (Hubbell)
3.5.4 IKEA
3.5.5 Ledvance (MLS)
3.5.6 Leviton
3.5.7 LIFX (Feit Electric)
3.5.8 Lutron Electronics
3.5.9 Plejd
3.5.10 Signify
3.5.11 Velux
3.6 Irrigation and water management system vendors
3.6.1 Hozelock
3.6.2 Flume
3.6.3 Gardena and Orbit Irrigation (Husqvarna)
3.6.4 Moen (Fortune Brands Innovations)
3.6.5 Rachio
3.7 Home appliances vendors
3.7.1 BSH Hausgeräte (Bosch)
3.7.2 Electrolux
3.7.3 GE Appliances (Haier)
3.7.4 Haier
3.7.5 LG Electronics
3.7.6 Whirlpool
3.8 Service robotics vendors
3.8.1 Ambrogio Robot (Zucchetti Centro Sistemi)
3.8.2 Dyson
3.8.3 Husqvarna
3.8.4 iRobot
3.8.5 Labrador Systems
3.8.6 Neato Robotics
3.8.7 Robomow (Stanley Black & Decker)
3.8.8 SharkNinja Operating
3.8.9 Worx Landroid (Positec)
4 Service Providers and Whole-Home System Vendors
4.1 Market overview
4.1.1 The European market
4.1.2 The North American market
4.2 Market segments and go-to-market strategies
4.2.1 Traditional home automation
4.2.2 DIY systems
4.2.3 Professionally monitored security
4.3 Whole-home system OEMs
4.3.1 ABB
4.3.2 Bosch
4.3.3 Control4 (Snap One)
4.3.4 Crestron Electronics
4.3.5 Delta Dore
4.3.6 D-Link
4.3.7 eQ-3
4.3.8 Ezlo Innovation
4.3.9 Essence Group
4.3.10 Fibar Group (Nice Group)
4.3.11 Gigaset
4.3.12 Gira
4.3.13 Grenton
4.3.14 Legrand
4.3.15 Loxone Electronics
4.3.16 myGEKKO (Ekon)
4.3.17 Nice Group
4.3.18 Resideo Technologies
4.3.19 Savant Systems
4.3.20 Schneider Electric
4.3.21 Shelly (Allterco)
4.3.22 Somfy
4.3.23 ThinKnx (Pulsar Engineering)
4.3.24 TP-Link
4.3.25 Universal Electronics
4.3.26 Xiaomi
4.4 Smart home service providers
4.4.1 ADT
4.4.2 Altice France
4.4.3 Brinks Home Security (Monitronics)
4.4.4 Centrica
4.4.5 Comcast
4.4.6 Cox Communications
4.4.7 Deutsche Telekom
4.4.8 Telus
4.4.9 Verisure
4.4.10 Vivint Smart Home (NRG Energy)
5 Market Forecasts and Conclusions
5.1 Europe
5.1.1 Revenues
5.1.2 Shipments
5.1.3 Installed base
5.2 North America
5.2.1 Revenues
5.2.2 Shipments
5.2.3 Installed base
5.3 Popular smart home product categories
5.3.1 Smart speakers and displays
5.3.2 Smart thermostats and radiator valves
5.3.3 Smart lighting
5.3.4 Smart plugs
5.4 Market trends and analysis
5.4.1 The rise and potential fall of smart speakers and voice assistant services
5.4.2 Will Matter solve the interoperability problems in the smart home industry?
5.4.3 Surging energy prices create demand for smart energy efficiency solutions
5.4.4 Connectivity - soon a standard feature in the home appliances segment
5.4.5 Lower price points opens the doors to the mass market
5.4.6 Cellular IoT in the smart home and home security markets
5.4.7 Open versus closed smart home ecosystems
5.4.8 Short product lifecycles damage consumer trust
5.4.9 Smart insurance for the connected home
5.4.10 Mergers and acquisitions in the smart home industry
Glossary
List of Figures
Figure 1.1: Example of an alarm system
Figure 1.2: Examples of security and access control systems
Figure 1.3: Examples of energy management and climate control devices
Figure 1.4: Sonos multi-room audio system
Figure 1.5: Philips Hue lighting system
Figure 1.6: B-hyve smart watering solution.
Figure 1.7: Samsung Family Hub Smart Fridge
Figure 1.8: Examples of service robots
Figure 1.9: Households, dwelling types and homeownership by country (EU27+3 2022)
Figure 1.10: Households, dwelling types and homeownership by country (NA 2022)
Figure 1.11: Existing homes and housing starts (EU27+3 2018-2021)
Figure 1.12: Existing homes and housing starts (North America 2018-2021)
Figure 1.13: Channels to market
Figure 2.1: Illustration of interoperability at different levels
Figure 2.2: Examples of technology choices by product OEMs
Figure 2.3: Examples of technology choices by whole-home solution vendors
Figure 2.4: HCA cloud-to-cloud connection
Figure 2.5: Matter application layer
Figure 2.6: Thread network topology
Figure 2.7: Wi-Fi generations
Figure 2.8: Homey app, Homey Bridge and Homey Pro
Figure 2.9: Alibaba Cloud IoT Platform
Figure 2.10: AWS IoT services
Figure 2.11: Azure IoT technologies and solutions
Figure 2.12: Tuya IoT Cloud Platform
Figure 3.1: Installed base per application area (EU27+3 and North America 2022)
Figure 3.2: Smart home strategies of product OEMs
Figure 3.3: Examples of incumbents and new entrants by application area
Figure 3.4: LiftMaster Secure View garage door opener with camera built-in
Figure 3.5: Minut Home Sensor and app
Figure 3.6: Nuki Smart Door Lock 3.0 Pro
Figure 3.7: Wyze Home Monitoring security system
Figure 3.8: Danfoss Ally smart heating system
Figure 3.9: Ecobee Smart Thermostat Premium and SmartSensor
Figure 3.10: Nest Learning Thermostat and Nest Cam
Figure 3.11: Sensibo Sky, Air and Air PRO smart AC controllers
Figure 3.12: Tado Smart Radiator Thermostat and app
Figure 3.13: Bose Smart Speaker 500
Figure 3.14: Shipments and installed base of Sonos products
Figure 3.15: Juno AI light and speaker with Amazon Alexa built-in
Figure 3.16: Plejd dimmers, gateway and app
Figure 3.17: Installed base of Signify connected light points (World 2017-2022)
Figure 3.18: Flume Water Monitor and Bridge
Figure 3.19: Moen Smart Sprinkler Controller and the Smart Water Network app
Figure 3.20: Rachio Smart Hose Timer
Figure 3.21: Labrador Retriever
Figure 3.22: Worx Landroid Vision robot lawn mower
Figure 4.1: Penetration of whole-home automation systems (EU27+3 and NA 2022)
Figure 4.2: Competitive landscape - Service providers and whole-home system OEMs
Figure 4.3: Top whole-home system vendors (EU27+3 2022)
Figure 4.4: Top whole-home system vendors (NA 2022)
Figure 4.5: Market segments
Figure 4.6: Interactive security systems with professional monitoring (NA 2021-2027)
Figure 4.7: Installed base of whole-home systems (North America 2022)
Figure 4.8: eQ-3 Homematic IP system
Figure 4.9: Examples of Fibaro products
Figure 4.10: Grenton touch panels
Figure 4.11: Savant’s energy management dashboard
Figure 4.12: ADT home security system
Figure 4.13: Xfinity home security system
Figure 4.14: Telus security subscriber base (North America 2018-2022)
Figure 4.15: Verisure home security system
Figure 4.16: Vivint Smart Home subscriber base (North America 2016-2022)
Figure 5.1: Smart home penetration and installed base (EU27+3 and NA 2021-2027)
Figure 5.2: Market overview (EU27+3 2021-2027)
Figure 5.3: Smart home revenues (EU27+3 2021-2027)
Figure 5.4: Revenues by whole-home system segment (EU27+3 2022-2027)
Figure 5.5: Shipments per application area (EU27+3 2021-2027)
Figure 5.6: Installed base per application area (EU27+3 2021-2027)
Figure 5.7: Market overview (North America 2021-2027)
Figure 5.8: Smart home revenues (North America 2021-2027)
Figure 5.9: Market share by whole-home system segment (North America 2022-2027)
Figure 5.10: Shipments per application area (North America 2021-2027)
Figure 5.11: Installed base per application area (North America 2021-2027)
Figure 5.12: Installed base of smart speakers and displays (EU and NA 2021-2027)
Figure 5.13: Homes with smart thermostats (EU27+3 and NA 2021-2027)
Figure 5.14: Installed base of smart light points (EU27+3 and NA 2021-2027)
Figure 5.15: Installed base of smart plugs (EU27+3 and NA 2021-2027)
Figure 5.16: Cellular connections in the smart home market (2021-2027)
Figure 5.17: Mergers and acquisitions in the smart home industry (World 2014-2023)
Samples
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- ABB
- Acuity Brands
- ADT
- Alarm.com
- Alibaba
- Altice France
- Amazon
- Ambrogio Robot (Zucchetti Centro Sistemi)
- Apple
- Arlo Technologies
- Assa Abloy
- AWS (Amazon)
- Ayla Networks
- Belkin
- Bosch
- Bose
- Brinks Home Security (Monitronics)
- BSH Hausgeräte (Bosch)
- Canary (Smartfrog Group)
- Centrica
- Chamberlain Group
- Comcast
- Control4 (Snap One)
- Cox Communications
- Crestron Electronics
- D-Link
- Danfoss
- Delta Dore
- Deutsche Telekom
- Dyson
- Ecobee
- Electrolux
- eQ-3
- Essence Group
- Eve Systems
- Ezlo Innovation
- Ezviz Network (Hikvision)
- Fibar Group (Nice Group)
- Flume
- Frontpoint
- Gardena
- GE Appliances (Haier)
- Gigaset
- Gira
- Grenton
- Haier
- Harman (Samsung Electronics)
- Home Connect Plus (Bosch)
- Homey
- Hozelock
- Husqvarna
- iDevices (Hubbell)
- IFTTT
- IKEA
- iRobot
- Kaleidescape
- Kwikset
- Labrador Systems
- Ledvance (MLS)
- Legrand
- Leviton
- LG Electronics
- LIFX (Feit Electric)
- Logitech
- Loxone Electronics
- Lutron Electronics
- Lux Products (Johnson Controls)
- Mediola
- Microsoft
- Minut
- Moen (Fortune Brands Innovations)
- myGEKKO (Ekon)
- Mysa
- Naim Audio
- Neato Robotics
- Netatmo
- Nice Group
- Nuki
- Nuki Home Solutions
- OBLO Living
- Olisto
- Orbit Irrigation (Husqvarna)
- Plejd
- Rachio
- Reolink
- Resideo
- Resideo Technologies
- Ring (Amazon)
- Robomow (Stanley Black & Decker)
- Samsung SmartThings
- Savant Systems
- Schlage
- Schneider Electric
- Sensibo
- SharkNinja Operating
- Shelly (Allterco)
- Signify
- Simplisafe
- Somfy
- Sonos
- Sound United (Masimo)
- Tado
- Telus
- ThinKnx (Pulsar Engineering)
- ThroughTek
- Toon (Eneco)
- TP-Link
- Tuya
- Universal Electronics
- Velux
- Verisure
- Vivint Smart Home (NRG Energy)
- Whirlpool
- Worx Landroid (Positec)
- Wyze Labs
- Xiaomi
- YI Technology
- Yonomi (Allegion)
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 240 |
| Published | April 2023 |
| Forecast Period | 2022 - 2027 |
| Estimated Market Value ( USD | $ 82.2 Billion |
| Forecasted Market Value ( USD | $ 145.1 Billion |
| Compound Annual Growth Rate | 12.0% |
| Regions Covered | Europe, North America |
