USD 79.55 billion
Report ID:
SQMIG45I2100 |
Region:
Global |
Published Date: June, 2024
Pages:
197
|Tables:
67
|Figures:
77
Global Smart Home Market size was valued at USD 79.55 billion in 2022 and is poised to grow from USD 101.84 billion in 2023 to USD 734.75 billion by 2031, at a CAGR of 28.02% during the forecast period (2024-2031).
The increasing integration of artificial intelligence (AI) into smart home devices to provide typically intelligent functionalities is projected to increase product consumption. Also, more and more people across the globe are adopting smartphones and the internet, which in turn contribute to the need for further connectivity in smart home devices. Embedded in AI, computerized help is delivering clients with a voice, touchless, and increasingly comfortable smart device distribution system, which is an influential trend among consumers. There is increasing demand for smart home appliances given the new features offered by digital assistants such as Bluetooth speakers, hands-free channel changing, among other functions. For example, Google was able to alter its assistant in a manner that would allow users to type messages with their voice and also to type emojis for the benefit of the users. The application of smart speech recognition means that items with a mic in the smart home can recognize the voice of the user and respond to them accordingly. Along these lines, there is a growth in this market due to the increasing adoption of IoT across the developed and developing nations. Creating innovation on new product designs is an area that the firms have always been on the right side funding. A recent example is an updated smart thermostat which was presented recently by Google’s Nest smart-home division. The Nest Thermostat is a basic version compared to the second and third models, or the Nest Learning Thermostat and the Nest Thermostat E and is slightly cheaper at USD 129. 99 which is $40 cheaper than Nest E and $ $120 cheaper than the third-generation Nest Learning Thermostat. Orders for it started to come in immediately with its pre-orders properly placed.
US Smart Home Market is poised to grow at sustainable CAGR for the next forecast year.
Global Market Size
USD 79.55 billion
Largest Segment
Wireless
Fastest Growth
Wired
Growth Rate
28.02% CAGR
To get more reports on the above market click here to Buy The Report
Smart home market is segmented into type, products, sales channel and region. Based on Type, the market is segmented into Behavioural Software & Services, Proactive Software & Services. Based on Products, the market is segmented into Security & Access Controls (Video Surveillance Systems [Hardware {Cameras, Storage Devices, Monitors, Other Accessories}, Software {Video Analytics Software, Video Management Software, Neural Networks And Algorithms}, Services], Access Control Systems (Hardware [Card-based Readers, Biometric Readers, Multi-technology Readers, Electronic Locks, Controllers, Facial Recognition, Iris Recognition, Fingerprint Recognition, Palm Recognition, Voice Recognition, Others], Software, Services), Lighting Control (Relays, Occupancy Sensors, Daylight Sensors, Timers, Dimmers, Switches, Accessories & Other Products), Entertainment & Other Controls (Entertaiment Control [Audio & Volume Controls, Home Theatre System Controls, Touch Screen & Keypads], Other Control [Smart Meters, Smart Plugs, Smart Hubs, Smart Locks, Smoke Detectors]), HVAC Control (Smart Thermostats, Sensors, Control Valves, Heating & Cooling Coils, Dampers, Actuators, Pumps & Fans, Smart Vents), Home Healthcare (Health Status Monitors, Fall Detectors, Physical Activity Monitors), Smart Kitchen (Smart Refrigerators, Smart Coffee Makers, Smart Kettles, Dish Washers, Smart Ovens, Smart Cooktops, Smart Cookers), Home Appliances (Smart Washers, Smart Dryers, Smart Water Heaters, Smart Vacuum Cleaners), Smart Furniture (Smart Tables, Smart Desks, Smart Stools & Benches, Smart Sofas, Smart Chairs). Based on Sales Channel, the market is segmented into Direct and Indirect Sales Channel. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Type
Proactive software and services dominate the smart home market due to their ability to offer predictive and adaptive functionalities. These systems use technologies, including natural language understanding, artificial intelligence (AI), and machine learning (ML) to recognize the user’s needs and perform home-related tasks. For instance, smart thermostats, that learn from people’s behaviour in terms of temperatures of the house, and security systems which can depict and warn the coming dangers, contribute to increase in comfort and security. To recap, current trends in technological advances, particularly in areas such as user experience, power consumption, and security, are forcing the implementation of proactive systems. Moreover, expanding consumer knowledge and enhanced connectivity of smart home devices with other segments of the Internet of Things (IoT) also create a demand for proactive software and services or account for the market’s prevalence.
On the other hand, behavioural software and services are becoming a fast-growing market because of the data-driven approach to improving smart home capabilities. Such systems provide advice and recommendations that allow users to make correct decisions regarding energy consumption, security, or other aspects of home management. Availability of cheap smart devices and the desire of customers to have such devices customized for them has been seen to drive this segment. However, improvements in data analysis and the shift towards smart living adapt behavioural software and services, which are one of the fastest-growing sectors in the smart home market.
Analysis by Products
In 2023, the security and access control segment held a commanding market share of more than 30.40% of the total revenue. The requirement to provide authorized access to safes or rooms housing priceless items, as well as the increase in the demand for intelligent security systems, are both factors contributing to this expansion. Live stream playback, personalized PINs, fingerprint scanners, and other features are all included in smart locks and security cameras to help monitor and authorize access only for authorized users. For instance, Amazon.com, Inc. introduced the Ring Spotlight Cam Plus, Ring Spotlight Cam Pro, and 2nd Gen Ring Alarm Panic Button in September 2022 for security and access control uses using radar and 3D motion detection technologies.
The market segment for home healthcare is anticipated to expand at the greatest CAGR during the forecast period. Due to rising healthcare and insurance expenses, customers are increasingly choosing smart home healthcare solutions for self-diagnosis, which is a factor in the segment's growth. The rise of fitness and health consciousness among consumers is another factor in the development of this market. Customers can check their vital signs like blood pressure and oxygen levels utilizing home healthcare gadgets, for instance. Before, this was only feasible after visiting a hospital or clinic; however, customers may now do simple tests at home thanks to smart home healthcare equipment.
To get detailed analysis on other segments, Request For Free Sample Report
During the predicted period, the Asia-Pacific region's CAGR will be the fastest, at 32.21%. Countries like China, Japan, and South Korea are leading in smart home technology adoption due to significant investments in IoT infrastructure and consumer electronics. It has been suggested that upgrades to living standards, as well as a rise in the disposable income of inhabitants, have been responsible for regional development. This means that market expansion in the area is expected to be driven by such factors as the use of cell phones, the internet, and other technological tools. This is a significant influence on the market due to the adoption of artificial intelligent digital assistants as household helpers, such as Siri and Alexa.
Europe is anticipated to see fastest CAGR growth. In 2023, the area saw a significant market share. Countries like Germany, the UK, and France are at the forefront due to favourable government policies and incentives for smart home adoption. The existence of important players in the region has attributed to growth of the region. Further, consumers’ consciousness towards sustainable and secure living also boosts the smart home devices in Europe. The factors which are expected to fuel the regional market, such as the emergence of smart home technologies and devices, comprises high GDP, higher standard of living, and technically advanced population in the region.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Smart Home Market Drivers
Integration with Voice Assistants and Mobile Devices
Rise in Home Connectivity and Internet Penetration
Restraints
Interoperability and Fragmentation is Restraining the Market Growth
Privacy and Security Concerns is Restraining the Market Growth
Request Free Customization of this report to help us to meet your business objectives.
The major players utilize techniques to strengthen their market positions, including alliances, purchases, ventures, innovations, R&D, and regional expansions. This industry is defined by key players like Amazon, Google, Apple, and Samsung companies due to their great technologies, high R&D activities, and efficient distribution channels. Smaller startups also participate by providing unique and targeted solutions. Synergies and affiliations are prevalent, and manufacturers embed their products together to create better compatibility. There is always an effort by market players to optimise the user experience through more AI and IoT solutions. However, competition forces rapid technological changes leading companies to introduce new technologies frequently, while at the same time, ensuring security and privacy to retain the customer base.
Smart Home Market Top Player’s Company Profiles
Smart Home Market Recent Developments
In March 2024, Viomi Technology Co., Ltd. disclosed a decline in net revenues for the entire year of 2023 during their recent earnings call. However, despite the decrease in revenue, the company managed to sustain a relatively steady gross profit and margin.
In February 2024, Ayla Networks, a leader in smart home platforms, and Meari Technology, a global manufacturer of camera and video products, joined forces in a strategic partnership. This collaboration aims to enhance the smart home experience by integrating top-tier video solutions into Ayla's diverse product lineup. The integration of innovative video technology with various smart devices will provide consumers with a seamless and enriched home automation experience.
In December 2023, CEDIA, the association for smart home professionals, published its 2023 Professional Smart Home Market Analysis in collaboration with market research firm Ancrage Consulting LLC. This year, CEDIA enhanced integrator survey responses by incorporating specification data from D-Tools and Portal, along with insights from 14 prominent U.S. manufacturers and distributors, marking the first time such comprehensive data integration has been undertaken.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analyses, the market of smart homes has been growing and is expected to grow even more in the nearest future. The use of smart technologies, rising consciousness among consumers and the need for comfort along with energy conservation is paving the way for smart home market. Although there are vast potential in the smart home market, but it is not without its risks. These include interoperability, security, costs, and the configuration and integration challenges. These challenges must be addressed to further fuel market growth by catering to the consumers’ requirements for simplicity, cost efficiency, and data privacy.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 79.55 billion |
Market size value in 2031 | USD 734.75 billion |
Growth Rate | 28.02% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
|
Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
|
Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Smart Home Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Smart Home Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Smart Home Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Smart Home Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Our industry expert will work with you to provide you with customized data in a short amount of time.
REQUEST FREE CUSTOMIZATIONWant to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Report ID: SQMIG45I2100