USD 4.6 billion
Report ID:
SQMIG45H2108 |
Region:
Global |
Published Date: July, 2025
Pages:
199
|Tables:
92
|Figures:
70
Global ZigBee Market size was valued at USD 4.6 billion in 2023 and is poised to grow from USD 4.9 billion in 2024 to USD 8.11 billion by 2032, growing at a CAGR of 6.5% during the forecast period (2025-2032).
The ZigBee market growth has expanded enormously with improvements. Market growth is driven by the mesh networking, low power capability of ZigBee, and hence it is suited for use in smart homes, industrial control, healthcare, and smart cities.
For instance, in the smart home segment that accounted for 47% of industry revenues in 2023, Philips Hue is one of the firms that have widened their ZigBee -enabled smart lighting portfolio, including bulbs that enhance interconnectivity across other products, and Amazon included ZigBee in its Echo devices to make them compatible for voice command-based control of smart home devices. North America has the highest market share because of the maximum adoption of smart home technologies, and the Asia-Pacific region, specifically China and India, will grow at the maximum rate because of increased IoT deployments as well as smart city applications.
The constraints that can curtail expansion are limited reach (10–100 meters) and competition from other options like Bluetooth Low Energy and Z-Wave. The new launches, i.e., NXP Semiconductors' launch of multiprotocol MCUs with ZigBee in April 2024, indicate the active innovation and competitive scenario.
Why is ZigBee Technology Gaining Traction In Smart Home and Industrial IoT Applications?
ZigBee technology is increasingly being used in industrial IoT and smart homes because of its low power, strong mesh networking, and low-cost interoperability. Low-power deployment lengthens battery life, suitable for commercial and residential devices. Mesh topology enhances network range and reliability with up to 65,000 devices supported for high-scale applications like industrial control and smart lighting. As an open-standard protocol, ZigBee enables seamless device interoperability and 128-bit AES encryption for secure data transmission in sensitive applications.
Market snapshot - 2025-2032
Global Market Size
USD 4.6 billion
Largest Segment
ZigBee Coordinator
Fastest Growth
ZigBee Routers
Growth Rate
6.5% CAGR
To get more reports on the above market click here to Buy The Report
Global ZigBee Market is segmented by Standards, Device Type, Applications and region. Based on Standards, the market is segmented into ZigBee RF4CE, Zigbee PRO, Zigbee IP, Zigbee Remote Control 2.0 and Zigbee 3.0. Based on Device Type, the market is segmented into Zigbee Home Automation, Zigbee Light Link, Zigbee Smart Energy and Others. Based on Applications, the market is segmented into Home Automation, Industrial Automation, Telecommunication services, Healthcare, Retail Services and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per the 2024 global ZigBee Market analysis, ZigBee Coordinator is the dominating device type in ZigBee networks as it carries out the sole critical function of forming the network, addressing the network, and offering security, which is why it forms a very crucial component of industrial IoT and smart home solutions. For instance, in an intelligent home, an appliance such as the Amazon Echo Plus is a ZigBee Coordinator, aggregating and managing a group of smart devices such as Philips Hue bulbs. There should be just one Coordinator in a network, and its power comes from being the sole, non-redundant role, providing network stability and scalability to applications.
The ZigBee Routers is expected to have considerable ZigBee Market share during the forecast period. ZigBee Routers will definitely grow tenfold in the future on the basis of growing requirements for large and strong IoT networks. Depending upon network coverage and reliability provided through relaying data between coordinator and end devices, they are unavoidable for mass deployments such as industrial automation or smart cities. In an industrial environment, for instance, ZigBee Routers embedded inside sensors offer continuous communication through large distances.
Based on global ZigBee Market forecast, the market is dominated by the home automation segment that generated about 47% of the revenue for the year 2024. This is due to the wide adoption of smart home appliances like smart lighting, thermostats, and security systems that make use of the low-power and mesh networking features of ZigBee to offer seamless connectivity and power savings.
The industrial automation segment of the ZigBee industry is expected to be the highest-growing segment, with the biggest market share in 2032 at a CAGR of approximately 9–13%. Low power consumption, wide range, and wireless sensor network feature of ZigBee make it most appropriate for monitoring and control of industrial equipment at remote locations.
To get detailed analysis on other segments, Request For Free Sample Report
North America dominates the global ZigBee Market with the uptake of smart home technology, superior technological infrastructure, and high penetration of leading industry players. Consumers within the region use ZigBee devices such as security systems and smart lighting in high proportion with Amazon using ZigBee within Echo devices to enable hassle-free connectivity. North America had the biggest market share in 2023 due to strong IoT ecosystems and heavy investments in smart city initiatives, mainly in Canada and the United States.
The U.S. leads the global ZigBee market with considerable value addition to North America's 33.8% global market share in 2024, backed by extensive use of IoT and smart home appliances. Worth around USD 2.72 billion in 2024, the market of the United States is expected to grow with a CAGR growth rate of 9.1% through 2032, driven by improved technology infrastructure, massive consumer demand for smart devices. For instance, Amazon Echo products utilize ZigBee for effortless smart home compatibility. Meaningful investments in energy-saving smart city and energy-saving technology such as ZigBee smart meters benefit the U.S., yet the country is vulnerable to 2.4 GHz interference and Wi-Fi/Bluetooth competition.
Canada's ZigBee Market, though not as large as the U.S., is a main driver of North America's dominance, with Toronto a hub for energy management and smart home technology. The market is fueled by a creative population and high-quality infrastructure, with uses ranging from home automation, healthcare, and industry applications. For example, businesses such as Toronto-based Lutron and iDevices utilize ZigBee for smart lighting and HVAC control to conserve energy.
Europe's ZigBee Market is increasingly driven by environmentally friendly trends and regulatory pressure in line with the EU's sustainability strategy, including the European Green Deal and the Ecodesign for Sustainable Products Regulation (ESPR). These initiatives drive energy-saving technology such as ZigBee, which enables low-power, mesh network technology for smart home and industrial IoT applications with minimal energy consumption. For instance, smart lighting and thermostats powered by ZigBee, such as Philips Hue, make energy consumption easy in European homes.
The U.K. dominates the European ZigBee Market, with support from its progressive consumers and highly evolved digital network infrastructure. Mass utilization of smart home devices, such as Aqara's 2024 ZigBee hubs (Hub M2, Camera Hub G2H) and Signify's ZigBee light bulbs, drives the market. The U.K.'s IoT growth and Amazon-dominated e-commerce strength, with ZigBee -capable products in Echo, increase its market standing.
France holds a commanding position in the European ZigBee Market driven by robust regulatory policy and green policies incorporating energy saving as well as smart grid implementation. In 2023, France ranked among the leading nations in Europe at 22 million smart homes, which boosted demand for ZigBee -based products in residential automation such as air conditioning and smart lights. The market is supported by a robust e-commerce market in France. Stores like Leroy Merlin, which is among the renowned retailers of France, do retail ZigBee -supportive home improvement products, enhancing market penetration.
Germany is among the leading forces behind the European ZigBee Market through its technologically advanced population and high per capita GDP. Germany's emphasis on Industry 4.0 and smart manufacturing accelerates industrial adoption of ZigBee, with Siemens using ZigBee in factory sensor networks. ZigBee power savings and mesh networking support place it in the best position for Germany's energy-saving strategy, though it struggled with Wi-Fi and Bluetooth technology in urban spaces.
The Asia-Pacific ZigBee market is growing at a very fast pace with several distinctive features coming into the market based on the needs of the region. Low power consumption is most appropriate for energy-saving smart home and industrial IoT applications, which are critical for urbanization-driven countries like China and India. Mesh networking provides solid connectivity in crowded conditions, ideal for scalable networks used by smart cities and homes. Cost savings attract price-conscience markets, allowing mass usage in consumer electronics such as Xiaomi ZigBee-enabled sensors. Interoperability between different devices facilitates IoT ecosystems to be interconnected, and secure communication (128-bit AES encryption) facilitates upcoming data privacy requirements.
Japan ZigBee market increases with IoT adoption and government incentives in smart manufacturing and energy efficiency, leading to Asia-Pacific market growth to an 8–12% CAGR in 2032. Low-power mesh networking of ZigBee enables smart homes, cities, and industry automation, and Panasonic is among companies utilizing it to control air conditioners and lighting. Limitations are competition from Wi-Fi/Bluetooth and limited range.
South Korea's ZigBee market is expanding widely driven by a well-educated citizenry and production of smart appliances. Samsung and LG employ ZigBee in home security systems and refrigerators for smartphone ease. Government-funded smart city and energy projects drive demand but high prices of ZigBee products and Z-Wave competition pose hurdles. Advanced e-commerce facilitates development.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Rising IoT and Smart Home Involvement
Power-Saving Wireless Demand
Alternate Wireless Technologies Competition
Limited Range and High Replacement Cost
Request Free Customization of this report to help us to meet your business objectives.
The ZigBee market is competitive with both established players and new-generation companies vying to push the limits of low-power, short-range wireless communication for IoT offerings. Market leaders such as Texas Instruments, NXP Semiconductors, and Silicon Labs are leading the market with their strong R&D, wide global presence, and strong ZigBee solutions and products in terms of chipsets, modules, and software for smart homes, industrial automation, and smart cities. However, startups are hampered by issues of intense competition from existing players, disruption by competing technologies (e.g., Bluetooth, Wi-Fi), and expensive development, which require strategic alliances and innovation to obtain market share.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the rapid advancements in technology, combined with an increasing emphasis are set to change the global ZigBee market outlook. Growing IoT and smart home applications, low-power, mesh networking capability of ZigBee make it most appropriate for use in residential automation (47% market share), industrial automation, and smart cities. North America has the highest wide smart home penetration, and Asia-Pacific, South Korea, and Japan are growing with smart city and Industry 4.0 programs. Industry leaders such as Texas Instruments, NXP Semiconductors, and Silicon Labs have the largest share, and companies such as Trident IoT and Notion are leading innovation in specialized segments. Trends involve adoption of ZigBee 3.0 and smart city uses, but limited availability of alternatives from Bluetooth and Wi-Fi and short range are downfalls.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 4.6 billion |
Market size value in 2032 | USD 8.11 billion |
Growth Rate | 6.5% |
Base year | 2024 |
Forecast period | 2025-2032 |
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
Table Of Content
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
Methodology
For the ZigBee 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 ZigBee 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the ZigBee Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the ZigBee 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.
REQUEST FOR SAMPLE
Global ZigBee Market size was valued at USD 4.20 billion in 2023 and is poised to grow from USD 4.85 billion in 2024 to USD 15.3 billion by 2032, growing at a CAGR of 14.5% during the forecast period (2025–2032).
The ZigBee market is competitive with both established players and new-generation companies vying to push the limits of low-power, short-range wireless communication for IoT offerings. Market leaders such as Texas Instruments, NXP Semiconductors, and Silicon Labs are leading the market with their strong R&D, wide global presence, and strong ZigBee solutions and products in terms of chipsets, modules, and software for smart homes, industrial automation, and smart cities. However, startups are hampered by issues of intense competition from existing players, disruption by competing technologies (e.g., Bluetooth, Wi-Fi), and expensive development, which require strategic alliances and innovation to obtain market share. 'Digi International ', 'AVM ', 'THIRDREALITY ', 'NXP Semiconductors N.V. ', 'Renesas Electronics Corporation ', 'Microchip Technology ', 'STMicroelectronics ', 'Texas Instruments Inc. ', 'GreenPeak Technologies ', 'Silicon Laboratories ', 'Digi International Inc ', 'DIgi-Key ', 'Hogar Controls ', 'Qualcomm Incorporated'
Energy-efficient ZigBee mesh networking is highly suitable for devices such as smart thermostats and lights with Philips Hue and Amazon Alexa leveraging it for hassle-free connectivity. Demand is led by North America and Asia-Pacific.
Faster ZigBee 3.0 Standard Adoption: ZigBee 3.0 standard is gaining speed with improved interoperability, security, and the ability to support more networks and is thus gaining momentum in smart home and industrial Internet of Things deployments. For instance, Philips and Tuya are introducing ZigBee 3.0 in conjunction with smart bulbs and hubs to make device connections easy in ecosystems like Matter, with estimated 75% growth in ZigBee -based smart lighting installations by 2025. It drives the growth of the market to USD 6.5–9.8 billion during 2030–2035.
Why Is North America Leading the Global ZigBee Market?
Want 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.
Feedback From Our Clients