The global smart home market size was valued at USD 79.16 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 27.07% from 2023 to 2030. Smart home products are available in the form of cameras, smart lights, streaming devices, dishwashers, and more. Growing trend of integrating Artificial Intelligence (AI) in smart home products for smart features is expected to increase product demand. Moreover, high penetration rate of smartphones and the internet globally is driving the demand for connected smart home products. Digital assistance integrated with AI is offering users a hands-free and more user-friendly deployment of smart devices, significantly impacting the buyers’ preferences.
Growing use of virtual assistants, such as Siri, Google Assistant, and Alexa, enables users to use voice commands for task automation. The emerging features of these digital assistants, such as Bluetooth speakers and hands-free channel surfing, among others are driving the demand for smart home devices. For instance, in October 2022, Google updated its assistant to support voice-input message typing along with emoji support for convenience in messaging for users. Rapid adoption of modern technologies, such as Internet of Things (IoT), blockchain, smart voice recognition, and AI, is significantly impacting the market growth.
Gather more insights about the market drivers, restrains and growth of the Smart Home Market
Detailed Segmentation:
Market Dynamics
GROWING DEMAND FOR SMART SECURITY & ACCESS SYSTEMS
One of the major concerns in every household across the globe is the fear of theft and burglary. According to the Federal Bureau of Investigation (FBI) statistics, a burglary occurs every 30 seconds across the U.S, adding up to over 3,000 burglar strikes per day. This has brought up significant installation of Closed-Circuit Televisions (CCTVs) around the premises of the properties, including household, office areas, driveways, and others. However, the various challenges associated with CCTVs, such as the ability of these cameras to only record footage and not prevent intrusions, requirement of high bandwidth and connectivity for remote monitoring, and others, is resulting in the growing demand for smart surveillance systems to ensure safety by detecting, deterring, and reporting intrusions. Smart surveillance system deploys sensors and computer vision to detect the actions and report real-time. It also enables the user to keep a backup of valuable footage on the cloud safely and allows connecting and controlling the entire location remotely.
INCREASING PENETRATION FOR GREEN AND ENERGY EFFICIENT SOLUTIONS
Increased human needs and wants to carry out day-to-day activities lead to a substantial amount of carbon emission into the atmosphere, resulting in global warming. The careless and over deployment of electricity is one of the major causes of global warming. With the introduction of smart technology and smart systems, several innovative devices have been developed to reduce energy usage and consumption in households, making them greener and more sustainable. Smart home devices, including smart thermostats, smart sprinkler systems, smart bulbs, smart meters, smart composters, and smart power strips, allow individuals to control and monitor power consumption, save energy, and help to reduce carbon emissions footprint. The ability of smart devices to be an energy-efficient solution offering sustainable solutions for environment is driving the growth of smart home automation market.
Products Insights
Security & access control segment dominated the industry in 2022 and accounted for the highest share of more than 30.40% of the overall revenue. This growth is attributed to the increasing demand for smart security solutions and the need to allow authorized access to safes or rooms with valuable items. Smart locks and security cameras help monitor and authorize access only for permitted individuals by incorporating live feed playback, custom PINs, fingerprint scanners, and more. For instance, in September 2022, Amazon.com, Inc. unveiled Ring Spotlight Cam Plus, Ring Spotlight Cam Pro, and 2nd Gen Ring Alarm Panic Button for security and access control purposes using radar and 3D motion detection features.
Protocols Insights
Wireless protocols segment is expected to grow at the highest CAGR of 27.75% over the forecast period. The segment also recorded the largest market share in 2022. This strong growth is attributed to the capabilities and features offered, such as mobile connectivity, connectivity regardless of location, and more by protocols namely, ZigBee, Wi-Fi, Bluetooth, Z Wave, and others. Manufacturers prefer protocols, which offer smooth communication, with less to no impact on battery life and range.
Application Insights
On the basis of applications, the global industry has been bifurcated into new construction and retrofit. The new construction segment is expected to register the fastest growth rate of more than 28.55% over the forecast period. This is mainly due to the convenience and ease of installing smart home devices at ongoing construction projects. Moreover, an increasing number of new residential construction projects around the world is expected to augment the demand for smart homes following the trend of smart security and access features.
Regional Insights
Asia Pacific smart home market will account for the fastest CAGR of 32.21% over the forecast period. This growth is attributed to the improved standard of living and rise in disposable income among individuals in the region. Penetration of smartphones, the internet, and other digitally advanced equipment is expected to drive market growth in the region. Furthermore, the trend of using AI-based digital assistance for daily tasks, such as Siri and Alexa, significantly impacts market growth.
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Some prominent players in the global smart home market include:
• LG Electronics, Inc.
• Siemens AG
• Amazon.com, Inc.
• Google Nest (Google LLC)
• Samsung Electronics Co., Ltd.
• Schneider Electric SE
• Legrand S.A.
• Robert Bosch GmbH
• Assa Abloy AB
• Sony Group Corp.
• ABB, Ltd.
• Philips Lighting B.V.
• Honeywell International, Inc.
Smart Home Market Segmentation
Grand View Research has segmented the global smart home market on the basis of products, protocols, application, and region:
Smart Home Products Outlook (Revenue, USD Million, 2018 - 2030)
• Security & Access Controls
o Security Cameras
o Video Door Phones
o Smart Locks
o Remote Monitoring Software & Services
o Others
• Lighting Control
o Smart Lights
o Relays & Switches
o Occupancy Sensors
o Dimmers
o Other Products
• Entertainment Devices
o Smart Displays/TV
o Streaming Devices
o Sound Bars & Speakers
• HVAC
o Smart Thermostats
o Sensors
o Smart Vents
o Others
• Smart Kitchen Appliances
o Refrigerators
o Dish Washers
o Cooktops
o Microwave/Ovens
• Home Appliances
o Smart Washing Machines
o Smart Water Heaters
o Smart Vacuum Cleaners
• Smart Furniture
• Home Healthcare
• Other Devices
Smart Home Protocols Outlook (Revenue, USD Million, 2018 - 2030)
• Wireless Protocols
o ZigBee
o Wi-Fi
o Bluetooth
o Z Wave
o Others
• Wired Protocols
• Hybrid
Smart Home Application Outlook (Revenue, USD Million, 2018 - 2030)
• New Construction
• Retrofit
Smart Home Regional Outlook (Revenue, USD Million, 2018 - 2030)
• North America
o U.S.
o Canada
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Benelux
o Nordic Countries
o Russia
• Asia Pacific
o China
o India
o Japan
o South Korea
o Australia
o Indonesia
o Thailand
• Latin America
o Brazil
o Mexico
o Argentina
• Middle East & Africa
o Saudi Arabia
o UAE
o Egypt
o South Africa
o Nigeria
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Recent Developments
• In January 2023, Schneider Electric acquired AVEVA plc to use AVEVA plc’s advanced software capabilities to introduce modern automation solutions for residential, commercial, and building complexes. The acquisition is expected to grow Schneider Electric’s home automation offering.
• In April 2022, ABB Ltd. launched a collaboration with Samsung Electronics Co., Ltd. to expand its home automation portfolio. The collaboration will make it easier for new customers to reduce costs and create a positive impact on the environment.
• In September 2022, Lutron Electronics Co., Inc. launched its Diva Smart Dimmer and Claro Smart Switch for smart lighting automation in homes which also has a wireless option.