Global Home Automation Market Outlook, 2028

Global home automation systems refer to a wide array of interconnected devices and technologies designed to automate and enhance the functionality of homes on a worldwide scale. These systems integrate various smart devices, sensors, and control mechanisms to provide homeowners with greater convenience, energy efficiency, security, and customization of their living spaces. Associations and programmes are supporting the innovations of home automation system, such as The European Design and Automation Association (EDAA) is a non-profit organization that promotes the development and application of electronic design and design automation (EDA) technologies; KNX is an open standard for commercial and residential building automation. KNX devices manage lighting, blinds and shutters, HVAC, security systems, energy management, audio video, white goods, displays, remote control, etc. BACnet Interest Group Europe (BIG-EU) promotes the application of the worldwide BACnet communication protocol ISO 16484-5 in European building automation and safety engineering. The most widely used home automation systems globally encompass a range of interconnected smart devices and technologies designed to enhance the functionality and convenience of modern homes. These systems include popular brands and products that have gained widespread recognition and adoption. Some of the most commonly used home automation systems and their associated brands include brands like Philips Hue, LIFX, and TP-Link Kasa offer smart LED light bulbs and lighting systems that allow users to control the brightness, color, and scheduling of their lights. These systems are integrated with voice assistants and provide energy-efficient and customizable lighting solutions. Amazon Alexa, Google Assistant, and Apple HomeKit are dominant voice assistant platforms that allow users to control various smart devices through voice commands. They are central hubs for many smart homes and offer integration with a wide range of compatible devices. Nest, Ecobee, and Honeywell are well-known for their smart thermostats that optimize heating and cooling, learn user preferences, and enable remote control through mobile apps. They enhance comfort and help reduce energy consumption. These widely used home automation systems and brands contribute to convenience, energy efficiency, security, and overall improved quality of life for homeowners on a global scale.

According to the research report," Global Home Automation Market Outlook, 2028"" the market is anticipated to cross USD 81.91 Billion market size by 2028, increasing from USD 46.53 Billion in 2022. The market is projected to grow with 10.30% CAGR by 2023-28. The global home automation system market is experiencing significant expansion, driven by a convergence of various factors and technological advancements. The rollout of 5G networks has played a pivotal role, providing faster and more reliable connectivity. This high-speed, low-latency network is crucial for enabling real-time communication and control of smart home devices, offering a seamless and responsive user experience. Moreover, customer adaptability has been a key driver, as consumers increasingly recognize the benefits of home automation, such as convenience, energy efficiency, and enhanced security. The market has also witnessed the emergence of new and innovative smart devices, as manufacturers continually introduce cutting-edge technologies to cater to evolving consumer needs. The impact of COVID-19 has further accelerated the growth of the home automation market, as the pandemic underscored the importance of health, safety, and remote control in home environments. Governments around the world have recognized the potential of home automation in promoting energy efficiency and sustainability and are providing incentives and regulations to encourage its adoption. Additionally, IoT advancements have revolutionized the home automation landscape, promoting greater interoperability among devices and enhancing the overall smart home ecosystem. Collectively, these factors have created a favorable environment for the expansion of the global home automation system market, with a strong emphasis on providing consumers with more connected, efficient, and responsive living spaces, thus enhancing their quality of life. The continued evolution of technology and consumer preferences is expected to further fuel the growth of this market in the coming years, ushering in even more innovative solutions for smart homes.

Based on the geography, the market report is segmented into major regions including North America, Europe, Asia Pacific, South America, and Middle East & Africa; including their countries. North America is a technological center that leads the world market for home automation systems because of its sophisticated customer base and high levels of innovation. Particularly the United States is renowned for having comparatively high levels of financial freedom. The majority of the clientele in the luxury home automation market are well-off individuals who have the means to purchase upscale, premium goods and services. The area has a sizable upper-middle-class and wealthy population, which creates a strong demand for upscale home automation. Luxury property owners in North America often desire unique and breathtaking experiences when living in their properties. The US is home to several hotspots for innovation and technology, including Boston, Austin, and Silicon Valley. The large concentration of tech startups and well-established tech companies in these areas encourages innovation and research in the field of home automation. The US market was valued at more than USD 11 Billion in 2022, and this is anticipating growing with great market in coming years. German companies are well known for producing high-end, trustworthy, and inventive home automation devices. These products include thermostats, smart lighting systems, and security systems. Germany has been a driving force behind the adoption of home automation systems due to its adaptability and commitment to energy efficiency and sustainability. With some of the most populous nations in the world, Asia-Pacific is seeing unparalleled urbanization. People are moving from rural to urban areas in search of better possibilities, and this is creating a desire for more intelligent and efficient living environments. Chinese consumers' enthusiasm in integrating smart technology into their homes is growing, creating a vibrant and quickly evolving sector. There are many different countries and cultures in South America, and this diversity is reflected in the home automation industry. Other nations in the region are quickly catching up to those who have been early adopters of smart home technology, such as Brazil, Argentina, and Colombia.

Based on the product type, the report is divided into four categories: managed home automation systems, DIY (do it yourself) home automation systems, luxury home automation systems, and mainstream home automation systems. The mainstream home automation system is the market leader in this space. A wide range of users favor these systems due to their affordability and accessibility. They are a desirable alternative for the typical homeowner since they typically have all the required smart features for things like security, lighting control, and climate control. Simultaneously, luxury home automation systems hold a significant market share, catering to those seeking advanced and highly customizable solutions. These high-end systems often encompass integrated entertainment, intricate lighting controls, and sophisticated climate management, appealing to affluent individuals looking to create a truly immersive smart home experience. Moreover, there's a growing trend towards DIY home automation systems. The rising numbers of regions are becoming interested in DIY smart home setups, which eliminate the need for expert installation. This do-it-yourself method is empowering and economical, letting customers customize the automation features to suit their needs. It is anticipated that as technology advances and becomes more accessible, the demand for DIY systems will only grow in the upcoming years. In the global market, managed home automation systems are also quite important. These systems offer a thorough and detached approach to home automation, and are usually installed and maintained by professionals. Larger or more intricate assets that require the highest level of integration and customization are favored by their owners. The global home automation market is characterized by this diverse array of choices, and it is poised for continued growth as technology advancements and the desire for energy efficiency and convenience continue to drive consumer demand.

Based on network technology market is divided into wireless, wired, and power-line based network technology. Global consumers have demonstrated a strong inclination towards wireless home automation technology owing to its user-friendliness and adaptability. Wireless technology held the largest market share within the home automation sector. The reasons for this dominance were multifaceted as the wireless systems offered the inherent advantage of easy installation, eliminating the need for complex and costly rewiring of homes, which was a key consideration for many homeowners, especially those in existing properties. This made the adoption of smart home technology more accessible and convenient for a broad range of consumers. Moreover, wireless technology allowed for seamless connectivity, enabling users to control and monitor various aspects of their homes remotely through smartphones and other devices. This aspect of remote accessibility was highly appealing, as it empowered homeowners with greater control over their living environments, from adjusting lighting and temperature to managing security systems. Companies and households choose wired connections for some automation components because of their data speed and dependability. Furthermore, by combining some of the simplicity of wireless settings with the dependability of wired systems, power line-based solutions offer an alluring compromise. Power line-based systems use the electrical infrastructure that is already in place to transmit data. The cohabitation of these various technologies emphasizes that there is no one-size-fits-all approach in the home automation industry; rather, it is a dynamic ecosystem with a diversity of solutions accessible to fulfill a wide range of requests. It also represents the varying preferences and needs of consumers in various nations and areas of the world.

The market is segmented based on the Wireless technologies into Wi-Fi, Zigbee, Bluetooth and Others (IR, Z-Wave, GSM, etc.) Globally, the preference for wireless technology in home automation systems has seen a significant shift towards various protocols, with Wi-Fi emerging as the dominant and most preferred choice. Wi-Fi's widespread adoption is attributed to its versatility, high data transfer rates, and the ubiquitous presence of Wi-Fi routers in most homes. This technology enables seamless connectivity for smart devices, allowing users to control and monitor their home automation systems from anywhere with internet access. Following Wi-Fi, Zigbee has gained prominence in the home automation market, particularly for its robust and reliable mesh networking capabilities. Zigbee is favored for its low power consumption, making it well-suited for battery-operated devices like sensors and smart locks. Its ability to create self-healing, self-organizing networks contributes to its appeal. Bluetooth, known for its short-range connectivity and low energy consumption, has also found a place in the home automation ecosystem. Bluetooth's use in personal area networks (PANs) and the Bluetooth Mesh standard has led to its adoption in devices like smart lighting and audio systems. In addition to these three prominent options, there are several other wireless technologies such as Infrared (IR), Z-Wave, GSM, and more, which are utilized in specific applications and regions. For instance, Z-Wave is well-known for its strong presence in the smart home industry, especially in North America, and is recognized for its interoperability and low power usage.

Globally the market is segmented based on the Fitment type into Retrofit and new construction. Globally the retrofit fitment dominates the market. This trend underlined the strong inclination among homeowners to upgrade their existing properties with smart home technology, reflecting the growing demand for convenient and energy-efficient living spaces. Retrofit installations involve the incorporation of home automation systems in pre-existing residential structures. Homeowners can enhance their homes with smart lighting, security, heating, and entertainment solutions without the need for significant renovations. The popularity of retrofit installations is attributed as it allows homeowners to modernize their properties, improve security, and reduce energy consumption without the disruptive and costly process of rewiring or retrofitting older homes. This approach aligns with the Global preference for preserving and refurbishing historical buildings and homes. Additionally, retrofit installations cater to a broad demographic of homeowners who want to experience the benefits of home automation without investing in new construction. The ability to control and monitor various aspects of their homes via smartphones and other devices, and the ease of installation, has made retrofit installations an attractive choice. In the global market, new construction installations were just as important as retrofit installations, which occupied the top spot. A harmonious and effective automation infrastructure is ensured in new construction projects by the seamless integration of home automation systems into the building plans. This strategy is especially well-liked when building project developers give top priority to cutting-edge technologies and energy efficiency from the beginning.

Applications-based market segmentation has emerged as a key differentiator in the rapidly changing global home automation system market, mirroring the wide range of customer demands and preferences. Security and access control, lighting control, HVAC management, entertainment systems, and other applications like smoke detectors and smart plugs are usually included in this division. Since safety and protection are top priorities for homeowners, security and access control solutions command a substantial portion of the market. These systems, which provide real-time surveillance and alerts for improved security, include smart cameras, motion detectors, door/window sensors, and sophisticated access control techniques. Lighting control applications have gained widespread popularity due to their contribution to energy efficiency and convenience. These systems allow users to adjust lighting brightness, color, and scheduling, optimizing energy use while creating the desired ambiance in living spaces. Entertainment systems also play a vital role, offering integrated control of smart TVs, streaming devices, and audio systems. This allows consumers to enjoy seamless access to multimedia content and optimize their home theater experiences. HVAC control applications, encompassing heating, ventilation, and air conditioning, cater to customer’s need for energy-efficient climate control. Smart thermostats enable remote management, learn user preferences, and establish energy-efficient temperature schedules, contributing to reduced utility bills. Beyond the main categories, miscellaneous applications like smoke detectors and smart plugs provide additional functionality to home automation systems. Smoke detectors enhance safety by issuing alerts in the event of a fire, while smart plugs offer control over household appliances for greater energy management.

Market Trends

• Voice Control Dominance: Voice control has emerged as a dominant and transformative force in the field of home automation systems, fundamentally changing the way we interact with our smart devices and the environments we live in. This technology, powered by virtual voice assistants like Amazon Alexa, Google Assistant, and Apple Siri, offers a seamless and natural way for users to control an array of smart devices and access information within their homes. The key to voice control's dominance lies in its unparalleled convenience and user-friendliness. Users can simply issue voice commands to adjust lighting, set the thermostat, play music, or lock doors, eliminating the need for manual control or mobile apps. This hands-free approach has resonated with consumers, making smart homes more accessible and inclusive, particularly for those with mobility challenges or disabilities.
• Energy Efficiency: Energy efficiency is a cornerstone of modern home automation systems, serving as a key driver for both homeowners and the environment. These systems incorporate smart devices such as thermostats, lighting controls, and energy-efficient appliances to help reduce the amount of energy required to power a home. Smart thermostats, for example, can intelligently adjust heating and cooling based on occupancy and temperature preferences, resulting in substantial energy savings. Smart lighting systems allow users to control the brightness, color, and scheduling of lights, leading to reduced electricity consumption. Additionally, energy-efficient appliances, when integrated into home automation, enable homeowners to manage and monitor their power usage. The benefits are twofold: reduced energy bills and a smaller carbon footprint.

Market Drivers

• Limited Market Understanding: Limited market understanding is indeed a significant challenge in the home automation system market. Despite the growing popularity of smart home technology, there is a gap in awareness and understanding among many potential consumers. The complexity and variety of available devices and systems can overwhelm those who are not well-versed in technology, leading to hesitation or resistance in adopting home automation. This lack of understanding often results in missed opportunities for homeowners to enjoy the benefits of increased convenience, energy savings, and enhanced security.
• Privacy and Security Concerns: Privacy and security concerns represent a significant challenge in the home automation system market. As more connected devices enter homes, the potential for privacy breaches and security vulnerabilities increases. Users are understandably worried about the safety of their personal data, as well as the risk of unauthorized access to their smart devices. Smart cameras and voice assistants, while enhancing convenience and security, can also raise concerns about surveillance and data collection.

Market Challenges

• Security and Safety: Security and safety stand as significant drivers behind the widespread adoption of home automation systems. In an increasingly connected world, the desire for enhanced security and safety in one's living environment has never been more paramount. Home automation offers a multifaceted approach to address these concerns. Additionally, automation contributes to safety through features such as smart smoke detectors, carbon monoxide sensors, and water leak detectors. These devices can immediately detect potential threats and trigger alerts or automated responses, such as turning off appliances or activating ventilation systems to mitigate risks.
• Customization and Personalization: The demand for customization and personalization stems from the desire for smart homes to be an extension of one's lifestyle, providing a more comfortable, efficient, and enjoyable living experience. Home automation systems allow users to create customized automation routines, also known as ""smart scenes,"" that can be triggered by specific events, schedules, or voice commands.

Key Developments

• The Custom Electronic Design and Installation Association (CEDIA) is a global trade association for the custom electronics industry. CEDIA has over 3,700 member companies from around the world, including many European companies that design, install, and sell home automation systems.
• The Smart Home Expo 2024 will be held on 2024 at the Jio World Convention Centre in Mumbai. The expo is India's largest trade show and conference dedicated to showcasing smart home technology
• In 2023, Azimut develops a new onboard home automation system with Google Cloud and Reply to improve the cruising experience and daily life at sea.
• In 2023, Apple introduced HomePod (2nd generation), a powerful smart speaker that delivers next-level acoustics in a gorgeous, iconic design. Packed with Apple innovations and Siri intelligence, HomePod offers advanced computational audio for a groundbreaking listening experience, including support for immersive Spatial Audio tracks.

Covid Impact

• Increased Adoption: With more people spending time at home due to lockdowns and remote work arrangements, the demand for home automation systems surged. Homeowners sought to enhance their living spaces to accommodate remote work, entertainment, and improved comfort. The pandemic heightened concerns about health and safety. As a result, there was increased interest in smart devices that could improve indoor air quality, provide touch less controls, and offer remote monitoring for health and wellness. Devices like smart air purifiers and touch less faucets gained popularity.
• Supply Chain Disruptions: The home automation system market, like many other industries, experienced supply chain disruptions due to various factors. The COVID-19 pandemic, in particular, had a significant impact on global supply chains. Lockdowns, factory closures, and restrictions on movement disrupted the production and distribution of smart home devices. Manufacturing facilities in many regions faced labor shortages, leading to delays in production. Additionally, transportation and logistics were severely affected, causing bottlenecks in the movement of goods. These disruptions led to shortages and increased lead times for various components and finished products in the home automation market. As a result, both manufacturers and consumers had to adapt to the challenges of a rapidly changing supply chain landscape, with some companies exploring more localized production and distribution strategies to mitigate future risks.

Competitive Landscape

Assa Abloy AB, ABB, Honeywell International, Inc., Acuity Brands, Inc., Larsen & Toubro Ltd, Samsung Electronics Co., Ltd., Siemens AG, Legrand, Alphabet Inc, ADT Inc, Schneider Electric SE, Signify N.V, Ingersoll-Rand plc, Johnson Controls International PLC, Lutron Electronics, Inc., Robert Bosch GmbH, Creston Electronics, Inc, Control4, Wink Labs Inc, Remote Technologies Incorporated.

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Home Automation System market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa

By Type:

• Luxury Home Automation System
• Mainstream Home Automation System
• DIY (Do It Yourself) Home Automation System
• Managed Home Automation System

By Network Technology:

• Wireless
• Wired
• Power-Line Based

By Wireless Technology

• Wi-Fi
• Zigbee
• Bluetooth
• Others (IR, Z-Wave, GSM, etc.)

By Fitment:

• Retrofit
• New Construction

By Application:

• Security and Access Control
• Lighting Control
• Entertainment System
• HVAC Control
• Others (Smoke Detector, Smart Plugs, etc.)

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Home Automation System industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.