Smart Homes Market Overview
Smart homes are futuristic residential buildings that are equipped with advanced electronic features, such as structured wiring and wireless devices. This technology allows inhabitants to remotely control a number of automated home devices by software commands, thereby resulting in greater comfort and security. In this era of ever-changing human needs, the smart homes market is growing rapidly due to technological improvements in home automation and wireless sensing devices.
GLOBAL SMART HOMES MARKET, BY REGION, $M (2013 – 2022)
The adoption of advanced technology is allowing multiple household appliances, such as dishwashers, refrigerators, and washing machines, to function smartly with low energy consumption, thereby contributing in the growth of the global smart homes market. Factors such as the substantial advancement and integration of technologies including internet of things (IoT), rising demand for safety and security in residential areas, large investments by home automation solutions providers, expanding product portfolio, and increasing awareness among customers regarding energy saving and having a low carbon footprint would majorly be responsible for the growth of the market. The need for on-demand and value-based home automation solutions is increasing rapidly due to the rising customer income, specifically of those belonging to the middle-class, which is enabling them to adopt cloud-based smart home solutions.
Smart Homes Market Dynamics
The smart homes market is predicted to prosper at a CAGR of 14.0% during the forecast period (2017–2023) to reach $70,208.6 million from 2017. The surging need for smart energy management, rapid growth in the adoption of technologies such as IoT, advancement in cost-effective automated solutions such as wireless lighting sensors, substantial savings on operational costs, and increasing use of automation technologies are the key factors responsible for the significant growth of the market.
The major trends prevailing in the smart homes market are strategic alliances or business partnerships among automation technology providers and telecommunication and data analytics software developers and increasing integration of cloud-based services, including wireless home security and surveillance and real-time temperature monitoring systems.
The smart homes market is growing rapidly due to the surging awareness and understanding amongst customers about the benefits and importance of installing automated and energy-efficient electrical appliances at residences.
By adopting smart, energy-efficient home appliances, consumers are able to lower the energy consumption via automatic temperature settings, functioning, and scheduled programmable operations. The growth of the smart homes market is also spurred by other factors such as a substantial rise in the demand for smart home healthcare solutions, growing adoption of emerging technologies such as IoT in households, and increasing need for less-carbon-emitting solutions, globally.
The usage of the latest automated digital technologies in home healthcare is a major factor driving the growth of the global smart homes market. The smart home technology is being integrated with multiple emerging and advanced medical devices, which helps in monitoring the health of patients and provides a higher quality of nursing at homes, thereby reducing the need for expensive healthcare services offered at hospitals, especially for elderly people.
Around the globe, various countries are executing green building policies, thereby creating huge opportunities for the smart homes market. During the forecast period, the buildings constructed under green initiatives would be equipped with advanced eco-friendly techniques with the primary focus on energy conservation. Strong initiatives taken by governments in various regions to promote the development of green buildings and the advancements in the data communication technology and connected devices are some of the key prospects for the market to grow.
The successful integration of automation technology within households through managed and professional services is another aspect supporting the prosperity of the smart homes market. Smart home professional services, such as device installations by experts, pre-sale and post-sale customer services, and amalgamation of new technologies within the current residential infrastructure, would allow for a substantial improvement in the adoption rate of smart home solutions.
Besides, advancements in connected devices and data communication technologies, such as near-field communication (NFC), Wi-Fi, and Bluetooth, are predicted to fuel the growth of the smart homes market. The rapid increase in the demand for Wi-Fi technology from the residential sector is expected to further support the demand for smart home solutions, which include Wi-Fi-connected lighting control systems, security & threat control, and entertainment systems and wireless home appliance operation.
Smart Homes Competitive Landscape
The rivalry among the competitors in the smart homes market is moderate. Most of the key market players are enthusiastically focused on enhancing their products and services to meet the increasing demand for smart home solutions via strategic activities such as mergers & acquisitions and partnerships.
For instance, Cisco Systems Inc. recently entered into a partnership with SAS Institute Inc. to create an edge-to-enterprise IoT analytics platform, which would aid multiple organizations with the applications of analytics software at as per different requirement.
Some of the key players operating in the smart homes market are Honeywell International Inc., Siemens AG, Schneider Electric SE, ABB Limited, Johnson Controls Inc., Samsung Electronics Co. Ltd., United Technologies Corporation, and Cisco Systems Inc.