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The smart home market is estimated to grow at a CAGR of 18.36% between 2022 and 2027. The size of the market is forecast to increase by USD 133.01 billion. The growth of the market depends on several factors, including growing consumer interest in home automation, an increase in crowdfunding campaigns, and the availability of a wide range of smart home products.
This report extensively covers market segmentation by application (home entertainment, smart appliances, energy management, lighting control system and HVAC, and safety and security system), technology (wireless and wired), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global smart home market as a part of the global technology hardware, storage, and peripherals market within the overall global information technology market. The parent global technology hardware, storage, and peripherals market covers manufacturers of cellular phones, personal computers, servers, electronic computer components, and peripherals. It also includes data storage components, motherboards, audio and video cards, monitors, keyboards, printers, and other peripherals. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growing consumer interest in home automation is notably driving the market growth, although factors such as the need for network coverage may impede the market growth. 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.
Key Smart Home Market Driver
The growing consumer interest in home automation is notably driving market growth. Smart home devices such as smart thermostats and smart lighting devices provide great comfort and convenience. Hence, more consumers are opting for their installation at home. Companies such as Amazon and Google have launched products that act as a hub for smart devices, which is an essential component in smart home products. The proliferation of smart home devices has also augmented the adoption of home energy management systems (HEMS), with more consumers embracing this technology, as it aids in energy conservation, in addition to the convenience that these products provide.
The increasing use of the latest home technology, such as AI-enabled smart home controllers and smart hubs is a major reason for the growing adoption of smart and innovative appliances. For instance, Amazon Echo by Amazon.com is a smart hub voice-controlled device capable of controlling Wi-Fi-connected home products such as appliances, gadgets, and electronics, including smart refrigerators and microwave ovens. Hence, all the aforementioned factors will play a major role in driving the market growth during the forecast period.
Significant Smart Home Market Trend
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.
Major Smart Home Market Challenge
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.
Bluetooth or Wi-Fi are required by the users to connect their smart devices to other devices across the home automation system. These connected home communication technologies need to be fast and have extensive coverage to allow the continuous working of the latest home 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.
Key Smart Home Market Customer Landscape
The 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 Market Customer Landscape
Vendors 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 operates under one segment. The company designs, manufactures, and distributes technology for security, control, networking, and remote management products. The key offerings of the company include offer smart home solutions such as smart TV.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the home entertainment segment will be significant during the forecast period. Advances in the functionality and technical capabilities of voice assistants, or particularly smart speakers, such as Google Home1 have created an enormous opportunity for the technological development and creation of utility for smart speakers in the smart home market.
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The home entertainment segment was valued at USD 15.90 billion in 2017 and continued to grow until 2021. Smart speakers provide an easily accessible, user-friendly interface that can be controlled during multitasking, where the smart speaker operates by scanning for a wake word before responding to the user's instructions. The various applications of smart speakers will significantly impact the growth of the market, where prominent vendors, such as Amazon.com cater to the demand for smart speakers. Owing to this trend several vendors are launching new and advanced products to attract more customers. Therefore, the increasing number of new product launches and rising demand for home entertainment systems will drive the growth of the market through the home entertainment segment during the forecast period.
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North America is estimated to contribute 37% 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.
North America accounts for the largest share of the global smart home market, primarily because of the increasing consumer inclination toward home automation. Owing to a need to lead a luxurious lifestyle amid rising disposable income, an increasing number of homeowners are adopting home automation systems, which, in turn, is driving the growth of the global home market.
In addition, the adoption of smart home products is rising in the region, owing to an increase in burglary rates. The number of burglaries in the US is higher than in other countries in the world, which puts the lives of homeowners at greater risk. Furthermore, the region is home to several smart home solution providers, such as Napco Security Technologies Inc. (Napco Security Technologies), and Salto Systems SL (Salto Systems), which provide various types of smart home devices at competitive prices. Therefore, these factors are expected to drive the growth of the market in North America during the forecast period.
The COVID-19 pandemic had a detrimental effect on North America's trade and economy in 2020. However, owing to intensive vaccination efforts conducted throughout the region in 2021, lockdown limitations were eased and operations resumed in offline end-user facilities, in addition to the online sector. Therefore, the regional market is estimated to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Application (Home Entertainment, Smart appliances, Energy Management, Lighting control system and HVAC, and Safety and security system), Technology (Wireless and Wired), and Geography (North America, Europe, APAC, Middle East and Africa, and South America).
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Smart Home Market Scope |
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Report Coverage |
Details |
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Page number |
182 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 18.36% |
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Market growth 2023-2027 |
USD 133.01 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
15.87 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 37% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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 International Plc., Legrand SA, LG Corp., Lutron Electronics Co. Inc., Panasonic Holdings Corp., Raytheon Technologies Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schneider Electric SE, Snap One LLC, and Vivint Smart Home Inc |
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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 report to meet your requirements. Get in touch
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 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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