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 Global Smart Home Market
Smart Home Market Segments Highlights:
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.
The home healthcare segment is projected to grow at the highest CAGR during the forecast period. This growth can be attributed to the trend of consumers preferring smart home healthcare products to self-diagnose, owing to rising healthcare and insurance costs.
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.
The wired protocols segment is expected to grow at a significant CAGR from 2023 to 2030 as a result of the traditional products with built-in Ethernet or cable ports.
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.
The retrofit segment dominated the global industry in 2022 and accounted for the highest share of the overall revenue in the same year.
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.
Europe smart home market is expected to grow at a steady CAGR from 2023 to 2030. The region recorded a significant market share in 2022. This growth can be attributed to the presence of key players in the region, including ABB, Legrand, Schneider Electric SE, Siemens, Robert Bosch GmbH, and others.
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Recent Development:
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.
Key Companies & Market Share Insights:
Key players use strategies, such as partnerships, acquisitions, ventures, innovations, R&D, and geographical expansions, to solidify their industry position. Companies are also focusing on improving their product offerings to better suit the changing needs of users to stay competitive. For instance, in August 2022, Amazon.com, Inc. launched its wall echo, sound bot, wall echo, and home robot as part of the company’s yearly model upgrade. Launch is expected to be in line with the company’s aim to counter upcoming competitive companies. Key companies are investing substantial capital in ventures, development, and research in modern technologies.
For instance, in January 2022, Samsung Electronics Co., Ltd. partnered with Oracle Corp. to develop smart energy solutions for its customers and combine Oracle’s contextual and behavioural energy insights with Samsung’s SmartThings products and automation services. This partnership is aimed at providing new and valuable features in their product offerings. Key players are also developing additional capabilities for smart home products to support their use in new construction homes as well as retrofit home fitments. Some prominent players in the global smart home market include:
LG Electronics, Inc.
Siemens AG
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.
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