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The US smart homes market size is forecast to increase by USD 5.91 billion and is estimated to grow at a CAGR of 5.41% between 2023 and 2028. The home automation market is experiencing significant growth due to increasing consumer interest in convenient and energy-efficient living. Smart home products, such as thermostats, lighting systems, and security cameras, are becoming increasingly popular. These devices not only enhance comfort and convenience but also contribute to energy conservation. The need for energy conservation is a major driving factor, as home automation systems can optimize energy usage and reduce utility bills. Additionally, advancements in technology and the availability of user-friendly interfaces have made smart home solutions accessible to a wider audience. Home automation is no longer a luxury, but a necessity for modern living.
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Smart homes are becoming increasingly popular as technology advances and residents seek convenience, safety, and energy savings. These connected living spaces allow residents to control various aspects of their homes remotely, including HVAC systems, home appliances, lighting, and entertainment. Energy saving solutions are a significant driver of the market, as electrical cooling systems and natural gas thermostats can be programmed to optimize energy usage. Safety and security are also major concerns for homeowners, and smart homes offer solutions such as smart locks and digital assistant integration for remote access and monitoring. Entertainment control and lighting are other popular features, with Bluetooth speaker control and lighting automation adding to the overall convenience and comfort of a smart home. The market for smart homes is expected to grow significantly in the coming years, with software and service providers playing a key role in the development and implementation of these systems. Smart kitchen appliances, furniture, and HVAC systems are also expected to see increased adoption, further expanding the capabilities of smart homes. Overall, the market offers residents a more efficient, convenient, and secure living experience. Our researchers analyzed the data with 2023 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.
Growing consumer interest in home automation is notably driving market growth. The global market for smart homes is experiencing significant growth due to the increasing adoption of software and services that enable the connection and automation of various home devices. These devices include electrical cooling and heating systems fueled by natural gas, heating oil, wood, and electrical heating systems. The integration of HVAC retrofitting with internet-connected technologies has led to the development of smart HVAC systems, which offer customization features such as temperature settings, schedules, and comfort preferences for different living spaces.
Moreover, the rise of connected technologies in homes has extended to security systems, including security cameras, as well as other home devices like thermostats, lights, and locks. Energy efficiency is a major driver for homeowners to invest in smart home ecosystems, as they aim to reduce their carbon footprint and save on energy costs. Thus, such factors are driving the growth of the market during the forecast period.
Increasing development of technologically advanced products is the key trend in the market. The Market is witnessing significant growth due to the integration of advanced technologies in home automation systems. Vendors are focusing on developing software and service offerings that cater to the unique needs of homeowners. Heating and cooling systems, such as electrical cooling systems, natural gas, heating oil, wood, and electrical heating systems, are being replaced with smart HVAC systems for enhanced energy efficiency.
Moreover, HVAC retrofitting is a key trend in the market, as homeowners seek to reduce their carbon footprint and save on energy costs. The integration of internet-connected devices, including heating, air conditioning, security cameras, and other home devices, is enabling customization features such as temperature settings, schedules, and living space comfort preferences. Thus, such trends will shape the growth of the market during the forecast period.
Increase in issues related to interoperability is the major challenge that affects the growth of the market. The market is experiencing significant growth, driven by the increasing adoption of software and services for home automation. Vendors are focusing on enhancing their offerings in areas such as energy management, lighting control, home entertainment, heating, ventilation, and air conditioning (HVAC), safety and security, and smart appliances.
Moreover, to cater to the evolving needs of homeowners, these vendors are frequently upgrading their products, integrating advanced features, and ensuring compatibility with various electrical cooling systems, natural gas, heating oil, wood, and electrical heating systems. However, the market faces challenges related to interoperability, which is crucial for enabling seamless communication and coordination among different smart home devices. Hence, the above factors will impede the growth of the market 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 analysis strategies.
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 products such as ABB Ability.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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 home entertainment segment is estimated to witness significant growth during the forecast period. The Market encompasses a range of electrical systems and fuels, including natural gas, heating oil, wood, and electrical heating systems. HVAC retrofitting is a significant aspect of this market, with the integration of internet-connected devices such as smart HVAC systems and thermostats. These systems offer customization features, enabling homeowners to set temperature preferences, schedules, and living spaces based on their comfort and energy efficiency needs.
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The home entertainment segment was the largest segment and valued at USD 5.55 billion in 2018. Smart home ecosystems also include security cameras, lights, locks, and other home devices, all of which can be controlled and monitored remotely. Renewable energy sources, such as solar and geothermal energy, are increasingly integrated into smart homes to reduce carbon footprints and promote sustainability. Urban planning and construction are also influenced by the adoption of smart home technologies, which prioritize energy efficiency and connected technologies. Hence, such factors are fuelling the growth of this segment during the forecast period.
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.
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Smart homes are transforming residential areas by offering convenience, safety, and energy savings. These electronic products are designed to manage lighting, temperature, intrusions, access control systems, and HVAC control remotely. The market for smart homes is growing rapidly due to increasing energy efficiency issues and the desire for advanced technology. In smart homes, lighting control plays a significant role. Lighting controllers, dimmers, timers, occupancy sensors, and daylight sensors are essential components of this market. LED-based systems and data connectivity technology enable residents to manage their lighting through smartphone apps, tablets, and standalone voice assistants.
The smart kitchen segment is another major area of growth in the market. Modular kitchens and kitchen renovation activities are driving the demand for smart kitchen appliances, including refrigerators, ovens, dishwashers, and cooktops. The market landscape depends on the Power line communication technology, Security and Access Control, Smart Furniture, Smart devices, Digital assistants. E-commerce platforms and tablets/smartphones make it easy for residents to purchase and control these appliances remotely. Smart home technology also includes entertainment control and home automation. External communication protocols like IoT enable seamless integration of various smart home devices. Access control systems provide an added layer of security, giving residents peace of mind. Overall, smart homes offer numerous benefits, making them an attractive option for residents in both urban and remote locations.
Market Scope |
|
Report Coverage |
Details |
Page number |
137 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.41% |
Market growth 2024-2028 |
USD 5.91 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.03 |
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, Carrier Global Corp., Comcast Corp., Honeywell International Inc., Hubbell Inc., Johnson Controls International Plc., Legrand, LG Electronics Inc., Lutron Electronics Co. Inc., Panasonic Holdings Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schneider Electric SE, Snap One LLC, and Vivint Inc. |
Market dynamics |
Parent market analysis, market report, 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. |
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 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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