Enjoy complimentary customisation on priority with our Enterprise License!
The smart home market size is forecast to increase by USD 133.01 billion, at a CAGR of 18.36% between 2022 and 2027. 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.
The Smart Home shows accelerating growth during the forecast period.
To learn more about this report, Request Free Sample
This market research 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.
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 is characterized by an array of innovative technologies aimed at enhancing residential living experiences. Key segments include home monitoring systems, ensuring real-time surveillance and security, and energy-saving solutions that promote sustainable practices and cost-efficiency. The smart home industry prioritizes safety and security, integrating advanced features such as intrusion detection systems, cameras, and smart locks. These elements provide house owners with peace of mind and comprehensive protection against potential threats. Convenience is another cornerstone of the market, with smart lighting and temperature control systems offering customizable settings for optimal comfort. Audio/video systems, streaming devices, and smart appliances like dishwashers contribute to a seamless and enjoyable living environment. Internet users are increasingly adopting energy-efficient systems, leveraging IoT platforms and IoT connections for centralized control and management. The emergence of 5G technology further enhances connectivity and responsiveness, enabling faster communication and data exchange among IoT devices.
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 market.
The home entertainment segment was valued at USD 15.90 billion in 2017.
Get a glance at the market contribution of various segments Request a PDF Sample
Moreover, 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 companies, such as Amazon.com cater to the demand for smart speakers. Owing to this trend several companies are launching new and advanced products to attract more customers. Therefore, the increasing number of new product launches and rising demand for house entertainment systems will drive the growth of the market through the house entertainment segment during the forecast period.
North America is estimated to contribute 37% to the growth of the global market during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
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 market, primarily because of the increasing consumer inclination toward house automation. Owing to a need to lead a luxurious lifestyle amid rising disposable income, an increasing number of house owners are adopting house automation systems, which, in turn, is driving the growth of the global market.
In addition, the adoption of smart house 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 house 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 research 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 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.
The smart home report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is rapidly evolving with a plethora of innovative technologies aimed at enhancing home living experiences. Key elements like home monitoring, energy-saving solutions, and temperature control systems are at the forefront, ensuring optimal comfort and efficiency. Audio/video systems and intrusion detection mechanisms provide advanced security, complemented by access control and lighting controllers for comprehensive safety measures.
Moreover, the integration of loT (Internet of Things) is pivotal, though it may encounter compatibility issues that challenge seamless connectivity. To address this, proactive software and behavioral versions of IoT platforms are emerging, offering adaptable and user-friendly interfaces. Modular kitchens equipped with a house battery and high-power solar inverter exemplify sustainable living. The proliferation of smart electrical panels and EV chargers reflects the shift towards eco-friendly practices reducing carbon emissions. Connected electrical outlets, light switches, and Modular Switches cater to the evolving needs of Internet users seeking energy-efficient and interconnected smart home systems.
However, the advancement of Internet of Things (IoT), 5G technology and IoT connections exposes vulnerabilities to cyberattacks and security threats. This necessitates robust measures, including standalone smart devices, security cameras, and smart surveillance systems to mitigate risks.In combating carbon emissions and global warming, smart technologies like smart thermostats, smart sprinkler systems, smart bulbs, and smart composters offer eco-conscious solutions. Smart meters and smart power strips further enhance energy management, while Blockchain technology ensures data integrity and security. Entertainment amenities such as entertainment centers, Bluetooth speakers, and streaming devices round out the comprehensive offerings of the Market, catering to diverse lifestyle needs.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.36% |
Market growth 2023-2027 |
USD 133.01 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.87 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, Canada, China, Germany, and UK |
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 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 |
Market dynamics |
Parent market analysis, Market forecasting, 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. |
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
Get lifetime access to our
Technavio Insights
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.