Smart Apartments Global Market Report 2024

The smart apartments market size has grown rapidly in recent years. It will grow from $3.1 billion in 2023 to $3.61 billion in 2024 at a compound annual growth rate (CAGR) of 16.4%. The growth witnessed in the historical period can be linked to factors such as urbanization and housing trends, a focus on energy efficiency and sustainability, increasing consumer expectations, concerns related to security and safety, and efforts aimed at enhancing property value.

The smart apartments market size is expected to see rapid growth in the next few years. It will grow to $5.97 billion in 2028 at a compound annual growth rate (CAGR) of 13.4%. The anticipated growth in the forecast period is associated with factors such as the aging population and increased accessibility, integration with smart cities, advancements in health and wellness technologies, the rise of remote work and home automation, and the emergence of smart home as a service (SHaaS). Key trends expected in the forecast period include the prevalence of IoT connectivity and interoperability, the implementation of smart parking solutions, an emphasis on data security and privacy, the development of efficient waste management systems, and the adoption of community engagement platforms.

The growth of the smart apartment market is fueled by the widespread adoption of Internet of Things (IoT) devices in various aspects of people's daily routines. IoT involves the exchange of data through a network of sensors, appliances, meters, and other interconnected devices. In smart apartments, IoT-enabled sensors and devices enhance the efficiency of appliances, making the living space more sustainable, efficient, and secure. For instance, certain IoT sensors can autonomously activate lights upon detecting occupancy in a room, contributing a distinctive feature to smart apartments. The growing demand for IoT devices that simplify lifestyle contributes significantly to the expansion of the smart apartment market, as evidenced by a 21.5% growth in overall enterprise IoT spending to $201 billion in 2022.

The increasing popularity of smart homes is poised to drive the future growth of the smart apartment market. Smart homes are residences equipped with interconnected devices and systems that offer remote control and automation, enhancing convenience, energy efficiency, and security for residents. Smart homes serve as a blueprint for smart apartment complexes, providing a structured approach to integrating interconnected, automated, and energy-efficient systems that elevate residents' quality of life. A 2023 survey report by TechSee Augmented Vision Ltd. indicates a rising adoption of smart home devices, with 40% of U.S. consumers already using such devices, with smart speakers (49%) and smart thermostats (32%) being the most popular. Thus, the increasing popularity of smart homes is anticipated to propel the growth of the smart apartments market.

The potential risk of a cyber-attack leading to a breach in privacy acts as a constraint on the growth of the smart apartment market. Smart apartments utilize a sophisticated network of internet-connected devices, including sensors and controllers, to manage various functions such as ventilation, heating, lighting, water systems, video surveillance, and alarms. A security breach resulting from a malicious cyber-attack can compromise the remote monitoring of essential aspects such as temperature and system performance, infringing on residents' privacy. Such cybersecurity breaches may exploit remote access privileges to gain unauthorized access to the facility. A notable incident in 2021 involved a consumer group's experiment that revealed over 12,000 cyber-attacks in a week, raising concerns about the safety of smart appliances in residential buildings. Thus, the potential risk of cyber-attacks causing privacy breaches poses a restriction on the growth of the smart apartment market.

The current trend driving the smart apartment market is the concept of Apartment as a Service (AaaS). In this model, fully furnished smart apartments are rented for short to long periods, providing a cost-effective solution for tenants. AaaS allows rental operators to streamline operations and costs, enhancing residents' experiences and creating new revenue streams for owners. According to Entrata, 57% of US apartment tenants are willing to pay up to $20 per month for smart technology in their apartments.

Key players in the smart apartments market are focusing on introducing IoT-enabled solutions to gain a competitive edge. For example, Quext, a US-based smart apartment technology company, launched the Quext IoT smart home solution in August 2021. This purpose-built solution for multifamily communities includes a patented LoRaWAN thermostat, smart hub technology, and best-in-class smart door locks. Quext Connect, a property-wide WiFi solution, offers reliable high-speed internet through a fiber network designed for the apartment industry.

In June 2022, ADT Inc., a US-based provider of electronic security and other related services, acquired IOTAS for an undisclosed amount. This acquisition aims to strengthen ADT Inc.'s product line in the multifamily market. IOTAS, a US-based provider of a premier smart home technology platform, offers automation features commonly found in single-family homes. The company also provides technology to property management firms to attract tenants.

Major companies operating in the smart apartments market report are Amazon.com Inc., Leviton Manufacturing Co. Inc., Apple Inc., Google LLC, Samsung Electronics Co. Ltd., Honeywell International Inc., Lennar Corporation, Schneider Electric SE, August Home, Asea Brown Boveri Ltd., Pulte Group Inc., Rachio Inc., Carlisle Companies Inc., Meritage Homes Corporation, Logitech International S.A., Yale, Crestron Electronics Inc., Vivint Smart Home Inc., Somfy Group, Metricon Homes LLC, Netatmo, Savant Systems LLC, Ecobee Inc., Lutron Electronics Co. Inc., Porter Davis Homes, Shea Homes, Henley Properties, Tado GmbH, Philips Hue, Control4 Corporation. Asia-Pacific was the largest region in the smart apartments market in 2023. Africa is expected to be the fastest-growing region in the global smart apartments market during the forecast period. The regions covered in the smart apartments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The primary product categories in smart apartments include building management systems (BMS), heating, ventilating, and air conditioning (HVAC), lighting control, security and access control, emergency alarm and evacuation systems, as well as audio and visual effects. Among these, lighting controls represent a category of smart lighting systems capable of managing the quantity, quality, and characteristics of light in a specific area. These intelligent devices contribute to reducing electricity waste and enhancing energy efficiency. Smart apartments find applications in residential areas, hotels, and various other settings.

The smart apartments market research report is one of a series of new reports that provides smart apartment market statistics, including global smart apartment market size, regional shares, competitors with a smart apartment market share, detailed smart apartment market segments, market trends and opportunities, and any further data you may need to thrive in the smart apartment industry. This smart apartment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The countries covered in the smart apartments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart apartments construction market includes revenues earned by entities by constructing or remodeling and renovating smart apartments. This market includes the sales of residential housing general contractors (that is new construction, remodeling, or renovating existing residential structures), for-sale builders and remodelers of residential structures, residential project construction management firms, and residential design-build firms. The smart apartment work performed includes new work, additions, alterations, maintenance, and repairs. Smart buildings use automatic processes to control the buildings' operations, such as air conditioning, lighting, security and other systems. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.