Enjoy complimentary customisation on priority with our Enterprise License!
The smart home market size is forecast to increase by USD 188.3 billion at a CAGR of 21.21% between 2023 and 2028. The growth of the market hinges on three fundamental factors. First is the escalating interest among consumers in home automation, driven by the desire for greater convenience and control over household functions. Second is the proliferation of crowdfunding campaigns, which have democratized access to innovative smart home products and solutions, fostering a competitive landscape and encouraging rapid technological advancements. Third is the widespread availability of smart home devices and systems, facilitated by advancements in manufacturing and distribution channels. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The home entertainment segment is estimated to witness significant growth during the forecast period. The smart home industry is experiencing significant growth, with home monitoring, energy-saving, and convenience being key drivers. Smart home technology, including safety and security systems, lighting, temperature control, audio/video systems, intrusion detection, access control, and home automation, is becoming increasingly popular. Smart speakers, such as Google Home and Amazon Echo, have revolutionized voice user interfaces, offering compatibility with various IoT devices, including modular kitchens, house batteries, high-power solar inverters, smart electrical panels, EV chargers, connected electrical outlets, and light switches.
Get a glance at the market contribution of various segments View the PDF Sample
The home entertainment segment was the largest segment and valued at USD 17.60 billion in 2018. However, compatibility issues persist, necessitating proactive software updates and behavioral versions. With the increasing number of IoT connections and 5G technology, the integration of machine learning and artificial intelligence is expected to enhance the functionality of smart home devices, including cameras, smart lights, streaming devices, and dishwashers. Despite these advancements, cyberattacks and security threats remain concerns for standalone smart devices. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 69% 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. The Market in North America is expected to lead the global market due to the growing trend of home automation. Consumers are increasingly adopting AI-driven smart features for their homes, including smartphones, digital assistance, and virtual assistants. Bluetooth speakers, Smart TVs, and entertainment centers are also popular choices.
Moreover, the market is further propelled by advancements in semiconductors, which enable the integration of smart technology into various household appliances such as coffee machines, hand blenders or other kitchen appliances. Security concerns, such as theft and burglary, have led to the widespread adoption of smart surveillance systems, including CCTVs and security cameras. Wi-Fi and Bluetooth connectivity enable remote access and control of these systems. Additionally, smart thermostats, sprinkler systems, bulbs, meters, composters, power strips, and other energy-efficient devices contribute to reducing carbon emissions and mitigating the effects of global warming. Blockchain technology is also being explored for secure data transmission and payment processing in the market.
The market is driven by several factors including the increasing demand for home monitoring systems, energy-saving solutions, and smart home industry advancements. Safety and security concerns are leading to innovations in intrusion detection and security systems. The trend towards convenience is reflected in the integration of smart features like lighting and temperature control. Challenges include addressing cyberattacks and security threats associated with IoT devices and Artificial Intelligence (AI), highlighting the need for robust security measures and encryption protocols. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market is experiencing significant growth due to the growing consumer interest in home automation. Smart home devices like thermostats and lighting systems are providing enhanced comfort and convenience, leading to increased adoption by consumers. Major companies like Amazon and Google have introduced smart hubs that act as central control systems for these devices, further driving their popularity.
Additionally, the rising use of advanced smart home technologies, such as AI-enabled smart home controllers and hubs, is fueling the demand for innovative appliances. For example, devices like Amazon Echo serve as voice-controlled hubs, enabling users to control various Wi-Fi-connected appliances. With these factors in play, the smart home industry is expected to continue its growth trajectory in the forecast period.
Growing smartphone penetration and increasing internet speed are emerging trends in the market. As smart appliances can be controlled using smartphones there is an increase in the adoption of smartphones among consumers. Moreover, with the increase in internet penetration worldwide, related industries that are dependent on the internet are also experiencing massive growth. Hence, the demand for smart homes is also growing with the increase in internet speed.
Furthermore, data consumption across the world has increased with improvements in network coverage and the deployment of innovative technologies like 4G long-term evolution (LTE) and 5G. Internet usage is currently being used by 5.07 billion people worldwide or 63.5% of the world's population. Therefore, these factors will drive the growth of the global market during the forecast period.
The need for network coverage is a major challenge impeding market growth. High-speed internet connectivity is required by smart home devices to function effectively. Though many countries, such as South Korea, Japan, and the UK, have state-of-the-art internet infrastructure, there are many other countries that lack basic network infrastructure. This is affecting the adoption of such smart devices.
Moreover, bluetooth or Wi-Fi are required by the users to connect their smart devices to other devices across the home automation system. These connected smart communication technologies need to be fast and have extensive coverage to allow the continuous working of the latest technology. Hence, individual consumers need to have access to high-speed internet at all locations, which is not a possibility in several instances. This is a major issue that will further affect the growth of the market in focus during the forecast period.
The market forecasting 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 market growth and forecasting strategies.
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.
Snap One LLC - The company provides cutting-edge smart home solutions, including innovative smart TVs, to meet the evolving needs of consumers.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 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.
In the modern world, Smart Homes have become a significant trend, with technologies such as Home Automation, Energy Management, and Security Systems taking center stage. The Market is witnessing a surge in demand due to the convenience and efficiency these systems offer. Homeowners are increasingly investing in these solutions to make their living spaces more comfortable, secure, and energy-efficient. Smart Home Systems enable homeowners to control various appliances and devices remotely using their smartphones or voice commands. These systems include devices like thermostats, lights, locks, and security cameras. Energy Management is another crucial aspect of Smart Homes, with solutions like solar panels, smart grids, and energy storage systems helping homeowners save on utility bills and reduce their carbon footprint. Security is another critical concern for homeowners, and Smart Homes offer advanced security solutions like facial recognition, motion sensors, and remote monitoring. With the integration of Artificial Intelligence and Machine Learning, these systems can learn homeowners' habits and preferences, providing personalized experiences and enhancing their overall quality of life. The Market is expected to grow significantly in the coming years, with increasing awareness and adoption of these technologies. Companies like Amazon, Google, Apple, and Samsung are investing heavily in this space, introducing new products and services to cater to the growing demand. Overall, Smart Homes are transforming the way we live, offering convenience, efficiency, and security, making them an essential investment for homeowners.
Moreover, the Market is experiencing significant growth, driven by the increasing demand for home monitoring, energy-saving solutions, and the integration of advanced technologies such as 5G, IoT platforms, Internet of Things (IoT), and Machine Learning in the smart home industry. This trend is transforming traditional homes into convenient, safe, and secure living spaces. Smart homes offer various features, including energy-efficient lighting and temperature control systems, audio/video systems, intrusion detection, and security cameras. IoT connections enable users to monitor and manage their homes remotely using their smartphones or digital assistants. Moreover, the integration of AI and cybersecurity measures enhances the safety and security of smart homes, protecting Internet users from potential cyberattacks and security threats. Smart devices, such as cameras, smart lights, streaming devices, and dishwashers, are becoming increasingly popular due to their convenience and advanced features. Bluetooth speakers and other entertainment systems are also becoming essential components of smart homes, providing users with an immersive and personalized home experience. Overall, the market is poised for continued growth, offering homeowners increased convenience, safety, and energy savings.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
190 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 21.21% |
|
Market growth 2024-2028 |
USD 188.3 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
17.25 |
|
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
APAC at 69% |
|
Key countries |
US, Germany, China, UK, and Canada |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
ABB Ltd., Allegion Public Ltd. Co., Alphabet Inc., Amazon.com Inc., Apple Inc., ASSA ABLOY AB, Comcast Corp., Honeywell International Inc., Hubbell Inc., Johnson Controls, Legrand SA, LG Corp., Lutron Electronics Co. Inc., Panasonic Holdings Corp., RTX Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schneider Electric SE, Snap One LLC, and Vivint Inc. |
|
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
|
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 Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
Get the report (PDF) sent to your email within minutes.