Smart Home Devices Global Market Report 2024

The smart home devices market size has grown rapidly in recent years. It will grow from $108.85 billion in 2023 to $128.19 billion in 2024 at a compound annual growth rate (CAGR) of 17.8%. The expansion during the historical period can be credited to factors such as consumer convenience and automation, the demand for security and surveillance, energy efficiency, cost savings, the aging population, and the need for accessibility, along with integration with mobile devices.

The smart home devices market size is expected to see rapid growth in the next few years. It will grow to $251.16 billion in 2028 at a compound annual growth rate (CAGR) of 18.3%. The anticipated expansion in the forecast period can be ascribed to factors such as health and wellness monitoring, integration into the smart home ecosystem, environmental sustainability, the presence of voice-activated and AI-powered devices, affordability, and widespread market appeal. Key trends expected in the forecast period encompass features focused on customization and personalization for users, innovations in smart home security and surveillance, the incorporation of augmented reality (AR) and virtual reality (VR), heightened privacy measures, and the emergence of subscription-based business models.

The surge in the demand for energy conservation and reduction of carbon emissions is a key driver for the smart home devices market. This heightened need for sustainable solutions has been spurred by stringent government regulations imposing limits on maximum carbon emissions permitted for each company. Unlike as conventional devices that continuously consume electricity until manually turned off, smart home devices are equipped with motion sensors that detect the absence of people in a room and automatically power off, resulting in savings in both money and electricity. This reduction in unnecessary electricity usage contributes to decreased power demand on plants, aiding in the reduction of carbon emissions. For instance, a 2021 study in Europe indicated that smart building technology could save up to 23% of the energy consumed in office buildings.

The increasing prevalence of IoT-connected devices within buildings is anticipated to drive future growth in the smart home device market. These IoT-connected devices in buildings encompass physical objects or systems embedded with sensors, software, and communication capabilities, enabling data collection and exchange with centralized systems over the internet. Smart home devices, a subset of IoT-connected devices, focus on enhancing residential living by providing convenience, automation, and data-driven insights to homeowners. As reported by AR Media International AB in 2021, the number of connected IoT devices in commercial smart buildings is projected to grow at an 11.1% CAGR from an estimated 1.264 billion in 2021 to over 2.5 billion by 2027. This proliferation of IoT-connected devices in buildings is a significant driver for the smart home device market.

The growth of the smart home device market is hampered by high switching costs. The expense associated with smart appliances, including upfront costs such as installation and maintenance, poses a barrier to adoption for both consumers and organizations. According to a 2021 survey by Parks Association, 44% of 46.7 million households surveyed stated that smart devices are perceived as too expensive. For instance, in the USA, a smart thermostat costs around $250, while a traditional thermostat is priced at approximately $25. This cost factor negatively impacts the market by impeding widespread adoption.

Companies are actively developing voice assistants for the management of smart home devices. These digital assistants respond to voice commands and provide relevant information, distinguishing themselves from traditional keyboard-based searches. They emphasize conversational phrasing and prioritize long-tail keywords for searches. For example, both Amazon and Google have introduced voice assistants for their respective smart speakers. Amazon's Echo smart speaker features the Alexa Voice Assistant, while Google's Google Home smart speaker is equipped with the 'Google Assistant' voice assistant.

Major players in the smart home devices market are strategically incorporating generative artificial intelligence into their products to optimize market revenues. Generative AI enhances user experiences by facilitating natural language interactions, personalized content, automation, and real-time data analysis. In September 2023, Amazon.com Inc., a US-based technology company, introduced generative AI for its voice assistant Alexa, incorporating user personal context such as favorite foods, shows, music, and games. This innovation is positioned as suitable for various settings, including voice, attractions, and homes with individuals of all ages.

In May 2021, Level Home announced the acquisition of Dwelo, a smart home startup, for $100 million. Through this acquisition, Level Home aims to provide a seamless combination of thoughtful hardware and a robust Software as a Service (SaaS) platform, offering residents enhanced control, convenience, and capabilities. Level Home, founded in 2016 in the US, specializes in creating smart home products.

Major companies operating in the smart home devices market report are Amazon.com Inc., Apple Inc., Alphabet Inc., Google LLC, Contral4, Hitachi Ltd., Sony Corporation, Siemens AG, General Electric Company, LG Electronics Inc., Panasonic Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Johnson Controls International PLC, Whirlpool Corporation, Emerson Electric Corporation, Koninklijke Philips N.V., BSH Hausgeräte GmbH, Delta Electronics Inc., Legrand S.A., ADT Inc., Hubbell Incorporated, Vivint Smart Home Inc., Axis Communications AB, Crestron Electronics Inc., Lutron Electronics Co. Inc., Ring LLC, SnapAV, Nest Labs Inc. Asia-Pacific was the largest region in the smart home devices market in 2023. The regions covered in the smart home devices market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The technologies employed in smart home devices include Wi-Fi technology and Bluetooth technology. Wi-Fi technology is a wireless technology that links computers, tablets, smartphones, and other devices to the internet. This involves the transmission of a radio signal from a wireless router to a nearby device, which then converts the signal into usable data. Smart home devices find applications in energy management, climate control systems, healthcare systems, home entertainment systems, lighting control systems, and security and access control systems. These devices are available for purchase through both online and offline channels.

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

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

The smart home devices market consists of sales of smart dishwashers, smart cookware and cooktops, smart ovens, smart refrigerators, and other smart home devices. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.