“179 Million Homes in Europe and North America Will Be Smart by 2024”
FEATURED COMPANIES
- ABB
- Canary
- Enovation
- Just Checking
- Plejd
- Sound United
Smart Homes and Home Automation is the eighth consecutive report analyzing the latest developments on the connected home markets in Europe and North America.
The study provides you with 310 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
179 Million Homes in Europe and North America Will Be Smart by 2024
Smart home and home automation systems include a wide range of solutions for controlling, monitoring and automating functions in the home. Smart home systems can be grouped into seven primary categories: security and access control systems; energy management and climate control systems; audio-visual and entertainment systems; lighting and window control systems; healthcare and independent living systems; home appliances and service robotics.
The North American smart home market recorded strong growth during 2019. The installed base of smart home systems increased by 28.5% to reach 172.6 million at the year-end. An estimated 19.1 million of these were multifunction or whole-home systems whereas 153.5 million were point solutions designed for one specific function.
As some homes have more than one smart system in use, the installed base totalled an estimated 43.1 million smart homes at the end of the year. This corresponds to 30.2% of all households, placing North America as the most advanced smart home market in the world.
Between 2019 and 2024, the number of households that adopt smart home systems is forecasted to grow at a compound annual growth rate (CAGR) of 12.5 percent, resulting in 77.9 million smart homes. The market value reached US$ 27 billion (€24.1 billion) in 2019, an increase of 20.5% year-on-year. The market value is expected to grow at a CAGR of 14.1% between 2019 and 2024, reaching US$ 52.3 billion (€46.7 billion) in yearly revenues at the end of the forecast period.
The European market for smart home systems is still a few years behind North America, both in terms of market penetration and maturity. At the end of 2019, there was a total of 111.9 million smart home systems in use in the EU28+2 countries, up from 83.9 million in the previous year. Around 10.8 million of these systems were multifunction or whole-home systems whereas 101.1 million were point solutions. This corresponds to around 40.3 million smart homes when overlaps are taken into account, meaning that 17.4% of all households in Europe were smart at the end of the year.
The number of European households to adopt smart home systems is forecasted to grow at a compound annual growth rate (CAGR) of 20.2% during the next five years, resulting in 101.1 million smart homes by 2024. The market value grew by 28.7% to €16.6 billion (US$ 18.5 billion) in 2019. The market value is forecasted to grow at a CAGR of 24.3% between 2019 and 2024 to reach €49 billion (US$ 54.9 billion) at the end of the forecast period.
A point solution will in many cases constitute the consumer’s first smart home purchase. Compared to whole-home systems, point solutions generated 62% of the combined market revenues in North America and Europe. The most popular point solutions to date, in terms of sold units, include smart thermostats, smart light bulbs, smart plugs, connected security cameras and voice controlled smart speakers. These products are marketed by incumbent OEMs such as Signify, Resideo, Danfoss, Belkin, Chamberlain, Kwikset and Assa Abloy and newer entrants such as Ecobee, Sonos, Arlo, Netatmo, IKEA and Wyze Labs.
In the whole-home system market, traditional home automation vendors such as Crestron Electronics, Control4, Savant Systems, eQ-3 and Loxone are facing new competition as companies from adjacent industries have entered the market. Communications and security service providers such as ADT, Vivint, Comcast and Brinks Home Security (Monitronics) have established themselves among the largest whole-home solution vendors in North America. Major vendors in Europe include Centrica, Somfy, Deutsche Telekom and Verisure.
The COVID-19 pandemic has so far had a very limited negative effect on the smart home market in North America and Europe. While sales in brick-and-mortar stores declined, online sales instead surged. Many people spent more time at home during the pandemic and thus became interested in home improvement activities such as adding smart homes devices.
The analyst expects that working from home will become increasingly common in the future, even as COVID-19 related lockdowns and restrictions are eased. Smart home products that make people feel safer at home as well as enable time-savings and convenience are likely to be popular among the many people that spend an increasing share of their time at home.
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.
The study provides you with 310 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
Highlights from the eighth edition of 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 2024
- Detailed reviews of the latest initiatives launched by industry players
- Updated profiles of the key vendors on this market
179 Million Homes in Europe and North America Will Be Smart by 2024
Smart home and home automation systems include a wide range of solutions for controlling, monitoring and automating functions in the home. Smart home systems can be grouped into seven primary categories: security and access control systems; energy management and climate control systems; audio-visual and entertainment systems; lighting and window control systems; healthcare and independent living systems; home appliances and service robotics.
The North American smart home market recorded strong growth during 2019. The installed base of smart home systems increased by 28.5% to reach 172.6 million at the year-end. An estimated 19.1 million of these were multifunction or whole-home systems whereas 153.5 million were point solutions designed for one specific function.
As some homes have more than one smart system in use, the installed base totalled an estimated 43.1 million smart homes at the end of the year. This corresponds to 30.2% of all households, placing North America as the most advanced smart home market in the world.
Between 2019 and 2024, the number of households that adopt smart home systems is forecasted to grow at a compound annual growth rate (CAGR) of 12.5 percent, resulting in 77.9 million smart homes. The market value reached US$ 27 billion (€24.1 billion) in 2019, an increase of 20.5% year-on-year. The market value is expected to grow at a CAGR of 14.1% between 2019 and 2024, reaching US$ 52.3 billion (€46.7 billion) in yearly revenues at the end of the forecast period.
The European market for smart home systems is still a few years behind North America, both in terms of market penetration and maturity. At the end of 2019, there was a total of 111.9 million smart home systems in use in the EU28+2 countries, up from 83.9 million in the previous year. Around 10.8 million of these systems were multifunction or whole-home systems whereas 101.1 million were point solutions. This corresponds to around 40.3 million smart homes when overlaps are taken into account, meaning that 17.4% of all households in Europe were smart at the end of the year.
The number of European households to adopt smart home systems is forecasted to grow at a compound annual growth rate (CAGR) of 20.2% during the next five years, resulting in 101.1 million smart homes by 2024. The market value grew by 28.7% to €16.6 billion (US$ 18.5 billion) in 2019. The market value is forecasted to grow at a CAGR of 24.3% between 2019 and 2024 to reach €49 billion (US$ 54.9 billion) at the end of the forecast period.
A point solution will in many cases constitute the consumer’s first smart home purchase. Compared to whole-home systems, point solutions generated 62% of the combined market revenues in North America and Europe. The most popular point solutions to date, in terms of sold units, include smart thermostats, smart light bulbs, smart plugs, connected security cameras and voice controlled smart speakers. These products are marketed by incumbent OEMs such as Signify, Resideo, Danfoss, Belkin, Chamberlain, Kwikset and Assa Abloy and newer entrants such as Ecobee, Sonos, Arlo, Netatmo, IKEA and Wyze Labs.
In the whole-home system market, traditional home automation vendors such as Crestron Electronics, Control4, Savant Systems, eQ-3 and Loxone are facing new competition as companies from adjacent industries have entered the market. Communications and security service providers such as ADT, Vivint, Comcast and Brinks Home Security (Monitronics) have established themselves among the largest whole-home solution vendors in North America. Major vendors in Europe include Centrica, Somfy, Deutsche Telekom and Verisure.
The COVID-19 pandemic has so far had a very limited negative effect on the smart home market in North America and Europe. While sales in brick-and-mortar stores declined, online sales instead surged. Many people spent more time at home during the pandemic and thus became interested in home improvement activities such as adding smart homes devices.
The analyst expects that working from home will become increasingly common in the future, even as COVID-19 related lockdowns and restrictions are eased. Smart home products that make people feel safer at home as well as enable time-savings and convenience are likely to be popular among the many people that spend an increasing share of their time at home.
This report answers the following questions:
- Which are the main verticals within smart homes and home automation?
- What are the main drivers behind growth in Europe and North America?
- What are the challenges and roadblocks towards widespread adoption?
- 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?
- What home connectivity technologies are smart home system vendors betting on?
- 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 Buy 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.
FEATURED COMPANIES
- ABB
- Canary
- Enovation
- Just Checking
- Plejd
- Sound United
i. Table of Contents
ii. List of Figures
iii. Executive Summary
1 Smart Homes, Connected Homes and Home Automation
2 Networks and Communications Technologies
3 Technology Providers and OEMs
4 Service Providers and Whole-Home System Vendors
5 Market Forecasts and Conclusions
List of Figures
A selection of companies mentioned in this report includes:
- ABB
- Acuity Brands
- ADT
- Ajax Systems
- Alarm.com
- Altice France
- Amazon Alexa
- Amdocs
- Apple HomeKit and Siri
- Arlo Technologies
- Assa Abloy
- AT&T
- August Home (Assa Abloy)
- AWS (Amazon)
- Ayla Networks
- Belkin
- Bosch
- Bose
- Brinks Home Security (Monitronics)
- BSH (Bosch)
- Canary
- Carrier
- Centrica
- Chamberlain Group
- Climax Technology
- Climote
- Comcast
- Control4 (SnapAV)
- Cox Communications
- Crestron Electronics
- D-Link
- Danfoss
- Delta Dore
- Deutsche Telekom
- Doro
- Double Robotics
- Dyson
- Ecobee
- Electrolux
- Enovation
- eQ-3
- Essence Group
- Eve Systems
- Fibar Group (Nice Group)
- Frontpoint
- GE Appliances (Haier)
- Geo
- Gigaset
- Google Home and Google Assistant
- Google Nest
- Grenton
- Haier
- Harman (Samsung Electronics)
- Hidea Solutions
- Hikvision
- Husqvarna
- iDevices (Hubbell)
- IFTTT
- IKEA
- iRobot
- Just Checking
- Kaleidescape
- Kwikset
- Ledvance (MLS)
- Legrand
- Leviton
- LG Electronics
- LIFX (Buddy Technologies)
- Livisi
- Logitech
- Loxone Electronics
- Lutron Electronics
- Lux Products (Johnson Controls)
- Minut
- MiOS (Ezlo Innovation)
- Naim Audio
- Neato Robotics
- Netatmo (Legrand)
- Nice Group
- OBLO Living
- Open Connectivity Foundation
- Plejd
- Qorvo
- Quby (Eneco)
- Reolink
- Resideo Technologies
- Ring (Amazon)
- Robomow
- Safe4 Security Group
- Samsung Electronics
- Savant Systems
- Schlage
- Schneider Electric
- Sensio
- Signify
- Simplisafe
- Softbank Robotics
- Somfy
- Sonos
- Sony
- Sound United
- Tado
- Telldus (Proove)
- ThroughTek
- TP-Link
- Trane Technologies
- Tunstall Healthcare Group
- Tuya
- Velux
- Verisure
- View
- Viva Labs
- Vivint Smart Home
- Vodafone
- Waylay
- Whirlpool
- Wink
- Wyze Labs
- Xiaomi
- YI Technology
- Yonomi
- Zucchetti Centro Sistemi (Ambrogio Robot)
The Internet of Things is very diverse. There are hundreds of different use cases, each with different dynamics. The starting point is to segment the market.
The analyst begins with a number of sectors: Automotive, Cities, Health, Industry, Home, Industrial, Energy, Retail and Consumer Electronics. Each of these sectors breaks down into a number of applications. In total across all sectors, the analyst examines around 150 separate applications. It is at this application level that they generate their IoT forecast. The analyst builds reliable data bottom-up. They take into consideration the current adoption rate, regulations, demographics, vertical-specific statistics, value chain structure, etc.
The rigorous data collection methods are based on first-hand and secondary sources. The analyst conducts many hundreds of executive interviews on a yearly basis with companies from all parts of the IoT value chain. They talk to on a regular basis all major mobile operator groups and regulators as well as the chipset, module, and terminal vendors. They also interview many companies in each of the vertical markets.
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