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The Smart Home Automation Market size is estimated to grow at a CAGR of 26.23% between between 2023 and 2028. The market size is forecast to increase by USD 179,037.6 million. The growth of the market depends on several factors, including the increased reliance on wireless technologies, the increasing demand for home security and monitoring systems and the availability of affordable retrofit smart home devices. Smart home automation refers to the integration of technology into a residential space to control and automate various tasks and functions, often with the goal of enhancing convenience, efficiency, security, and energy conservation. Smart home automation includes smart lighting, thermostats, security cameras, door locks, and several others, which can be remotely monitored and controlled through a central hub or via a mobile device connected to the internet.
This smart home automation market report extensively covers market segmentation by technology (hybrid, wireless, and wired), component (hardware, software, and services), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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One of the key factors driving the smart home automation market growth is the increased reliance on wireless technologies. There is an increasing use of wireless technology due to the ease of installation and operation through remote control. In addition, most of the devices used for heating, ventilation, and air conditioning (HVAC) control, security surveillance, and other home automation devices are wireless, and this trend is expected to gain traction in the coming years.
Moreover, the installation of wireless products eliminates the need for sophisticated wiring and thus saves time as well as labor costs. In addition, companies such as ACL are offering high-speed routers for wireless connectivity of the home automation systems software. Furthermore, most market players in home automation systems are developing their products to support wireless connectivity to save on installation costs and to keep abreast of the evolving technological demands of end-users. Hence, such factors drive the market growth during the forecast period.
A key factor shaping the smart home automation market growth is the rise in the adoption of cloud-based technologies. Smart home security systems rely on the centralized control of the home gateway, for which the intelligence has shifted onto the network called the cloud. In addition, cloud-based services decrease the complexity of software issues that crop up in the connected devices and facilitate the interoperability of devices in a simpler way.
Moreover, most residential users are rapidly adopting cloud-based home security solutions that have self-monitoring and remote-service features. In addition, it offers a user-friendly interface to homeowners, helping them to arm, disarm, and check the security status of their house from a remote location. Furthermore, cloud-based services ensure a low cost of ownership and on-demand scalability without any additional cost to homeowners. Hence, such factors drive the market growth during the forecast period.
The high initial costs associated with installation and configuration are one of the key challenges hindering the smart home automation market growth. It has become difficult for manufacturers to convince consumers to upgrade their regular home appliances with the smart connected variety, owing to this high-cost factor. In addition, companies are challenged to create affordable products for the mass consumer segment, especially in emerging countries, where consumers are price sensitive.
Moreover, most product offerings are targeted at the high-end consumer segment, offering a small home automation consumer base. In addition, the technology used in home automation is complex and needs in-depth R&D activities, for which huge investments are required. Hence, such factors are hindering the market growth during the forecast period.
The hybrid segment is estimated to witness significant growth during the forecast period. This segment utilizes both wired and wireless technologies to integrate various smart devices and systems within a home. In addition, it combines the stability of wired connections with the convenience and flexibility of wireless connectivity. Furthermore, this hybrid approach ensures a reliable and robust infrastructure for smart home automation, offering seamless communication between devices and systems.
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The hybrid segment was the largest segment and was valued at USD 13,820.91 million in 2018. Moreover, with the adoption of the hybrid approach, homeowners can enjoy the benefits of both wired and wireless technologies. In addition, wired connections offer a stable and secure network foundation, ensuring minimal signal interference and consistent performance. Furthermore, wireless connectivity enables the flexibility to add or relocate smart devices without the hassle of wiring. In addition, the hybrid segment enables the integration of various protocols and technologies. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The numerous advantages offered by the hardware segment will increase the market growth during the forecast period. The hardware segment comprises the physical devices and components that enable the automation and control of various systems within a smart home. In addition, this segment comprises a broad range of products including smart hubs, smart thermostats, smart lighting systems, security cameras, and more. One of the main devices in the hardware segment in the global smart home automation market is smart hubs which act as the central control unit, connecting and managing different smart devices and systems within a home. Furthermore, they enable the integration of multiple devices from different manufacturers, allowing users to create customized automation routines and control their smart home with ease. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Several factors that are significantly contributing to the growth of the market in North America include the need to lead a luxurious lifestyle amid rising disposable income, and the increasing number of homeowners adopting home automation systems. In addition, the adoption of smart home automation devices is rising in the region, due to an increase in burglary rates. Hence, to improve security, several homeowners are integrating home automation systems, which, in turn, will fuel the growth of the smart home automation market in the region. Hence, such factors are driving the market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global smart home automation market witnessed a significant slowdown due to the disruption in the supply chain and a halt in the manufacturing of smart home appliances in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of manufacturing and supply chain activities. Such factors are expected to drive the market during the forecast period.
The smart home automation market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Smart Home Automation Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers smart home automation solutions for all the functions that can be controlled such as blinds, lighting, heating, air conditioning or door communication. They are designed to make life simpler and smarter.
Alphabet Inc: The company offers smart home automation solutions through Google home that manage, and control Google Nest, Google Wifi, Google Home, and Chromecast devices, plus thousands of compatible connected home devices that can be automated.
Amazon.com Inc: The company offers smart home automation solutions through Alexa smart home that can make a home smarter and more automated by simplifying everyday routines.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The smart home automation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 - 2022.
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Smart Home Automation Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.23% |
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Market growth 2024-2028 |
USD 179,037.6 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
25.63 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 33% |
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Key countries |
US, Canada, China, Germany, and the UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Allegion Public Ltd. Co., Alphabet Inc., Amazon.com Inc., Comcast Corp., Crestron Electronics Inc., Honeywell International Inc., Hubbell Inc., Ingersoll Rand Inc., Johnson Controls International Plc, Legrand SA, Leviton Manufacturing Co. Inc., LG Corp., Lutron Electronics Co. Inc., Panasonic Holdings Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schneider Electric SE, Siemens AG, and Snap One LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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