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Smart Homes and Home Automation - 9th Edition

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  • 300 Pages
  • April 2022
  • Region: Global
  • Berg Insight AB
  • ID: 5576293

Interest in energy efficiency solutions is growing as energy prices surge

How should the mobile industry address the vast business opportunity in connected smart homes? The analyst estimates that revenues from the home automation system shipments and service fees in Europe and North America will grow at a compound annual growth rate of 13.5 percent from US$ 68.8 billion in 2021 to US$ 129.7billion in 2026. Get a 360-degree perspective on the rapid evolution of the home automation market in this comprehensive 300-page strategy report.

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 the adoption of smart home systems in Europe and North America.
  • New market forecasts lasting until 2026.
  • 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 the 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?
  • 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 in-depth research.

Table of Contents

Executive Summary
1 Smart Homes, Connected 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 Lighting and Window Control Systems
1.2.5 Healthcare and Independent Living
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 Insteon
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 Homey
2.3.5 IFTTT
2.3.6 Mediola
2.3.7 Samsung SmartThings
2.3.8 Wink
2.3.9 Yonomi (Allegion)
2.4 Smart Home Platforms
2.4.1 AWS (Amazon)
2.4.2 Ayla Networks
2.4.3 Google Cloud
2.4.4 Microsoft
2.4.5 ThroughTek
2.4.6 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 Ajax Systems
3.2.2 Arlo Technologies
3.2.3 Assa Abloy
3.2.4 Canary
3.2.5 Chamberlain Group
3.2.6 Ezviz Network (Hikvision)
3.2.7 Frontpoint         .
3.2.8 Kwikset (Assa Abloy)
3.2.9 Logitech
3.2.10 Minut
3.2.11 Nuki Home Solutions
3.2.12 Reolink
3.2.13 Ring (Amazon)
3.2.14 Schlage
3.2.15 Simplisafe
3.2.16 Wyze Labs
3.2.17 YI Technology
3.3 Energy Management and Climate Control System Vendors
3.3.1 Danfoss
3.3.2 Ecobee (Generac)
3.3.3 Eneco
3.3.4 Eve Systems
3.3.5 Geo
3.3.6 Google Nest
3.3.7 iDevices (Hubbell)
3.3.8 Lux Products (Johnson Controls)
3.3.9 Mysa
3.3.10 Netatmo (Legrand)
3.3.11 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 Sony
3.4.7 Sound United
3.5 Lighting And Window Control System Vendors
3.5.1 Acuity Brands
3.5.2 Belkin
3.5.3 IKEA
3.5.4 Ledvance (MLS)
3.5.5 Leviton
3.5.6 LIFX (Buddy Technologies)
3.5.7 Lutron Electronics
3.5.8 Plejd
3.5.9 Signify
3.5.10 Velux
3.6 Healthcare and Independent Living Solution Vendors
3.6.1 Appello
3.6.2 Careium
3.6.3 Climax Technology
3.6.4 Enovation
3.6.5 Just Checking
3.6.6 Qorvo
3.6.7 Sensio
3.6.8 Tunstall Healthcare Group
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
3.8.8 SharkNinja Operating
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 Alarm.com
4.3.3 Bosch
4.3.4 Control4 (Snap One)
4.3.5 Crestron Electronics
4.3.6 Delta Dore
4.3.7 D-Link
4.3.8 eQ-3
4.3.9 Ezlo Innovation
4.3.10 Essence Group
4.3.11 Fibar Group (Nice Group)
4.3.12 Gigaset
4.3.13 Gira
4.3.14 Grenton
4.3.15 Legrand
4.3.16 Loxone Electronics
4.3.17 myGEKKO (Ekon)
4.3.18 Nice Group
4.3.19 OBLO Living
4.3.20 Resideo Technologies
4.3.21 Savant Systems
4.3.22 Schneider Electric
4.3.23 Shelly (Allterco)
4.3.24 Somfy
4.3.25 Telldus (Proove)
4.3.26 TP-Link
4.3.27 Universal Electronics
4.3.28 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
4.4.11 Vodafone
5 Market Forecasts and Conclusions
5.1 Market Forecasts
5.2 Europe
5.2.1 Revenues
5.2.2 Shipments
5.2.3 Installed Base
5.3 North America
5.3.1 Revenues
5.3.2 Shipments
5.3.3 Installed base
5.4 Popular Smart Home Product Categories
5.4.1 Smart Speakers and Displays
5.4.2 Smart Thermostats and Radiator Valves
5.4.3 Smart Lighting
5.4.4 Smart Plugs
5.5 Market Trends and Analysis
5.5.1 Will Matter Solve Interoperability Problems In The Smart Home Industry?
5.5.2 Surging Energy Prices Create Demand For Smart Energy Efficiency Solutions
5.5.3 Connectivity – Soon A Standard Feature In The Home Appliances Segment
5.5.4 Greater Consumer Awareness Benefits All Players
5.5.5 Lower Price Points Opens The Doors To The Mass Market
5.5.6 Cloud-Based Systems and The Integrated Hub Opportunity
5.5.7 Cellular IoT In The Smart Home and Home Security Markets
5.5.8 Open Versus Closed Smart Home Ecosystems
5.5.9 Short Product Lifecycles Damage Consumer Trust
5.5.10 Smart Insurance For The Connected Home
5.5.11 Mergers and Acquisitions In The Smart Home Industry
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: Care@Home Activity Monitoring Solution
Figure 1.7: Samsung Family Hub Smart Fridge
Figure 1.8: Examples Of Service Robots
Figure 1.9: Types Of Markets For Home Automation
Figure 1.10: Households, Dwelling Types, and Homeownership By Country (Na 2020)
Figure 1.11: Households, Dwelling Types, and Homeownership By Country (Eu27+3 2020)
Figure 1.12: Existing Homes and Housing Starts (North America 2017–2020)
Figure 1.13: Existing Homes and Housing Starts (Eu27+3 2017–2020)
Figure 1.14: 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: Matter Application Layer
Figure 2.5: Homey App, Homey Bridge, and Homey Pro
Figure 2.6: Examples Of IFTTT Applets
Figure 2.7: Aws IoT Services
Figure 2.8: Aws IoT Partnership Approach
Figure 2.9: Azure IoT Technologies and Solutions
Figure 2.10: Tuya IoT Cloud Platform
Figure 3.1: Installed Base Per Application Area (Eu27+3 and North America 2021)
Figure 3.2: Smart Home Strategies Of Product OEMs   Figure 3.3: Examples Of Incumbents and New Entrants By Application Area
Figure 3.4: Ajax Systems’ Security System and Devices
Figure 3.5: Arlo Go 2 and Arlo Video Doorbell
Figure 3.6: The Yale Assure Lever Lock and August Home Mobile App
Figure 3.7: Circle View Camera and Circle View Doorbell
Figure 3.8: Minut Home Sensor
Figure 3.9: Nuki Smart Door Lock 3.0
Figure 3.10: Reolink Go
Figure 3.11: Wyze Home Monitoring Security System
Figure 3.12: Danfoss Ally Smart Heating System
Figure 3.13: Ecobee Thermostat and Light Switch
Figure 3.14: Toon Smart Thermostat
Figure 3.15: Eve Aqua Smart Water Controller
Figure 3.16: Nest Thermostat and Nest Cam
Figure 3.17: Lux Kono Smart Thermostat
Figure 3.18: Bose Home Speaker 500
Figure 3.19: Juno Ai Light and Speaker With Amazon Alexa Built-In
Figure 3.20: Ikea Trådfri Smart Kit
Figure 3.21: Bosch and Ledvance Alarm System Starter Kit
Figure 3.22: Plejd Dimmers, Gateway and App
Figure 3.23: Installed Base Of Signify Connected Light Points (World 2017–2021)
Figure 3.24: Eliza By Careium Smartcare Hub
Figure 3.25: Ge Kitchen Hub
Figure 3.26: Dyson Heurist Robot Vacuum Cleaner
Figure 3.27: The Gardena Smart System From Husqvarna
Figure 3.28: Labrador Retriever
Figure 4.1: Penetration Of Whole-Home Automation Systems (Eu27+3 and Na 2021)
Figure 4.2: Competitive Landscape – Service Providers and Whole-Home System Oems
Figure 4.3: Top Whole-Home System Vendors (Eu27+3 2021)
Figure 4.4: Top Whole-Home System Vendors (Na 2021)
Figure 4.5: Market Segments
Figure 4.6: Interactive Security Systems With Professional Monitoring (Na 2020–2026)
Figure 4.7: Installed Base Of Whole-Home Systems (North America 2021)
Figure 4.8: Alarm.Com’s Subscriber Base (World 2017-2021)
Figure 4.9: Eq-3 Homematic IP System
Figure 4.10: Examples Of Fibaro Products
Figure 4.11: Gigaset Smart Home Security System
Figure 4.12: Honeywell Home Proseries Security and Smart Home Platform.
Figure 4.13: Savant Systems’ Smart Home System
Figure 4.14: The Complete Home Security System
Figure 4.15: Xfinity Ultimate Home System
Figure 4.16: Vivint’s Subscriber Base (North America, 2017-2021)
Figure 5.1: Smart Home Penetration and Installed Base (Eu27+3 and Na 2020–2026)
Figure 5.2: Market Overview (Eu27+3 2020–2026)
Figure 5.3: Smart Home Revenues (Eu27+3 2020–2026)
Figure 5.4: Revenues By Whole-Home System Segment (Eu27+3 2021–2026)
Figure 5.5: Shipments Per Application Area (Eu27+3 2020–2026)
Figure 5.6: Installed Base Per Application Area (Eu27+3 2020–2026)
Figure 5.7: Market Overview (North America 2020–2026)
Figure 5.8: Smart Home Revenues (North America 2020–2026)
Figure 5.9: Market Share By Whole-Home System Segment (North America 2021–2026)
Figure 5.10: Shipments Per Application Area (North America 2020–2026)
Figure 5.11: Installed Base Per Application Area (North America 2020–2026)
Figure 5.12: Installed Base Of Smart Speakers and Displays (Eu and Na 2020–2026)
Figure 5.13: Homes With Smart Thermostats (Eu27+3 and Na 2020–2026)
Figure 5.14: Installed Base Of Smart Light Points (Eu27+3 and Na 2020–2026)
Figure 5.15: Installed Base Of Smart Plugs (Eu27+3 and Na 2020–2026)
Figure 5.16: Cellular Connections In The Smart Home Market (2020–2026)
Figure 5.17: Mergers and Acquisitions In The Smart Home Industry (World 2014–2022)

List of Figures



Executive Summary

The definition of a smart home system is one that is accessible from a remote and includes a smartphone app or a web portal user interface. Devices that only can be controlled and automated locally, through switches, timers, sensors, and remote controls, are thus not included in the scope of this study. 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 in 2021. 
 The installed base of smart home systems increased by 18.0 percent to reach 223.2 million at the yearend. An estimated 30.0 million of these were multifunction or whole-home systems whereas 193.2 million were point solutions designed for one specific function. As some homes have more than one smart system in use, the installed base totaled an estimated 51.3 million smart homes at the end of the year. This corresponds to 35.8 percent of all households, placing North America in the most advanced smart home market in the world. Between 2021 and 2026, the number of households that adopt smart home systems is forecasted to grow at a compound annual growth rate (CAGR) of 7.8 percent, resulting in 74.6 million smart homes. Market revenues reached US$ 36.7 billion (€_31.0 billion) in 2021, an increase of 16.4 percent year on year.
 The market is expected to grow at a CAGR of 11.7 percent between 2021 and 2026, reaching US$ 63.7 billion (€ 53.9 billion) in yearly revenues at the end of the forecast period. The European market for smart home systems is still behind the North American market in terms of market penetration and maturity. However, the market has now grown to become almost as large as the North American market. At the end of 2021, there was a total of 167.7 million smart home systems in use in the EU27+3 countries, up 22.9 percent year on year. 

 Around 20.0 million of these systems were multifunction or whole-home systems whereas  147.7 million were point solutions. This corresponds to around 53.7 million smart homes when overlaps are taken into account, meaning that 23.0 percent 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 13.7 percent during the next five years, resulting in 99.7 million smart homes by 2026. Market revenues grew by 30.9 percent to € 29.7 billion (US$ 35.1 billion) in 2021. The market is forecasted to grow at a CAGR of 15.5 percent between 2021 and 2026 to reach € 61.1 billion (US$ 72.2   billion) at the end of the forecast period.   
 A point solution will in many cases constitute the consumer’s first smart home purchase. 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, Schlage, and Assa Abloy and newer entrants such as Ecobee, Sonos, Arlo,  Nuki, Mysa, 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.     
 There are a  number of factors and trends in today’s society that favor the smart home market. The interest in energy efficiency solutions is growing as energy prices surge and sustainable solutions are part of the daily agenda in media and corporate boardrooms. Smart thermostats and HVAC systems, smart lighting, connected home appliances as well as other connected home systems can all help lower the energy consumption in the home and turn reduce the energy bill. Consumer interest in these types of solutions is now growing rapidly.  Berg Insight also anticipates that working from home will remain common post-Covid-19 and that people that spend more time at home are more willing to invest in smart home products and services as they can provide improved safety, wellbeing, and convenience.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • ABB                      
  • Acuity Brands                   
  • ADT                      
  • Ajax Systems      
  • Alarm.com                    
  • Altice France                    
  • Ambrogio Robot (Zucchetti Centro Sistemi)           
  • Appello                     
  • Arlo Technologies        
  • Assa Abloy          
  • Belkin                     
  • Bosch                     
  • Bose                      
  • Brinks Home Security (Monitronics)             
  • BSH Hausgeräte (Bosch)                
  • Canary           
  • Careium                 
  • Centrica                    
  • Chamberlain Group        
  • Climax Technology                  
  • Comcast                     
  • Control4 (Snap One)                 
  • Cox Communications                 
  • Crestron Electronics                  
  • D-Link                     
  • Delta Dore                    
  • Deutsche Telekom                  
  • Dyson                     
  • Ecobee (Generac)                  
  • Electrolux                    
  • Eneco                     
  • Enovation                   
  • eQ-3                   
  • Essence Group                  
  • Eve Systems                    
  • Ezlo Innovation                   
  • Ezviz Network (Hikvision)      
  • Fibar Group (Nice Group)                
  • Frontpoint         . 
  • GE Appliances (Haier)                 
  • Geo                                        
  • Gigaset                     
  • Gira                      
  • Grenton                   
  • Haier                      
  • Harman (Samsung Electronics)               
  • Husqvarna                    
  • iDevices (Hubbell)                  
  • IKEA                   
  • iRobot                     
  • Just Checking                   
  • Kaleidescape                   
  • Kwikset (Assa Abloy)      
  • Labrador Systems                  
  • Ledvance (MLS)                   
  • Legrand                   
  • Leviton                     
  • LG Electronics                   
  • LIFX (Buddy Technologies)        
  • Logitech           
  • Loxone Electronics                  
  • Lutron Electronics                  
  • Lux Products (Johnson Controls)              
  • Minut           
  • myGEKKO (Ekon)                  
  • Mysa                      
  • Naim Audio                    
  • Neato Robotics                   
  • Netatmo (Legrand)                  
  • Nice Group                    
  • Nuki Home Solutions      
  • OBLO Living                    
  • Plejd                    
  • Qorvo                     
  • Reolink                
  • Resideo Technologies                 
  • Robomow                    
  • Savant Systems                   
  • Schlage           
  • Schneider Electric                  
  • Sensio                     
  • SharkNinja Operating                 
  • Shelly (Allterco)                   
  • Signify                     
  • Simplisafe                    
  • Smart Home Service Providers              
  • Somfy                    
  • Sonos                     
  • Sony                      
  • Sound United                        
  • Tado                              
  • Telldus (Proove)                   
  • Telus                      
  • TP-Link                    
  • Tunstall Healthcare Group                             
  • Universal Electronics                                     
  • Velux                              
  • Verisure                   
  • Vivint                      
  • Vodafone               
  • Whirlpool                        
  • Wyze Labs           


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.