Smart Homes Market Share Analysis by Product (Lighting Control, Security and Access Control, Access Control, HVAC Control, Entertainment, Smart Speaker, Home Healthcare, Smart Kitchen, Home Appliances, Smart Furniture), Software & Services (Behavioral, Proactive), Sales Channel (Direct, Indirect) - Global Industry Growth and Demand Forecast to 2030

Market Overview

The smart homes market size stood at $82.0 billion in 2021, and it is expected to advance at a compound annual growth rate of 10.2% during 2021–2030, to reach $196.5 billion by 2030. This is credited to the increasing disposable income in developing economies, rising importance of remote home monitoring, surging number of internet users, and growing adoption of smart devices. Essentially, the growth in safety concerns, rise in the demand for convenience among the general population, expansion of smart home product portfolios by the players, and escalation in the need for energy-saving solutions are propelling the market.

This market is governed by specific technology for both wired and wireless technologies. Players offer residential building automation management system software for on-premises (for centralized connectivity) as well as cloud-based deployment (for remote connectivity). Moreover, companies sell their products via two distribution channels: one is direct and the other indirect. The supplier ecosystem and supply chain network depend on the type of technology made and distributed. Smart home automation systems are mass-produced and easily available with third-party retailers. Moreover, those integrated into luxury residences are made on the special demand of customers.

Furthermore, the adoption of wireless technologies is growing in lighting applications, audio systems, and other entertainment systems among customers due to their higher comfort.

The growth in the usage of enhanced technologies, such as IoT, machine learning, artificial intelligence, and automated solutions, such as wireless lighting, is continuously impacting the revenue of the market. The need for on-demand and value-based home automation solutions is rapidly growing due to the increasing customer income, which is enabling them to adopt cloud-based smart home solutions for the enhancement of their comfort.

Moreover, the ability of smart lights to connect with IoT devices and create a variety of ambiances with the use of just mobile phones or tablets has made them popular across residences.

Moreover, lighting consumes around 15% of the total electricity in an average house, and about $225 in energy costs can be saved per year by using smart LEDs. The broad range of features, such as dimming, various color tones as per requirement, automatic on/off, energy usage monitoring, and Wi-Fi, Bluetooth, or ZigBee connectivity, coupled with the growing adoption of IoT devices and voice assistant platforms, have created market growth avenues for intelligent lighting.

The major market players are entering into business partnerships with automation technology providers and telecommunication and data analytics software developers. For instance, in March 2021, Emerson and Ameren Missouri announced a partnership to offer Emerson’s Sensi smart thermostats to Ameren Missouri users. Moreover, the integration of cloud-based services, including wireless home security and surveillance and real-time temperature monitoring systems, is rising.

In this regard, this market is expected to grow due to the technological advancements in home automation and wireless sensing devices. These technologies allow inhabitants to remotely control a number of automated home devices with software commands, thereby resulting in greater comfort and security. With the help of voice commands, people can switch on/off their lights and even control bathroom showers. Nowadays, customers are more aware of smart home technologies—from door locks and basic curtains to room lighting and other products. People want to live an enriched life and are, thus, spending more on such gadgets.

Additionally, the adoption of enhanced technologies, including IoT, enables multiple domestic appliances, such as dishwashers, refrigerators, and washing machines, to work energy- and cost-efficiently. In addition, the rising demand for safety and security in residential areas, high investments by home automation solution providers, expanding product portfolios, and increasing awareness among customers regarding energy saving and achieving a small carbon footprint are responsible for the market growth.

North America To Be Highest Revenue Contributor

North America is expected to dominate the market during the forecast period. The main driving factors for the regional market are the rising demand for reliable and cost-efficient home management systems, including advanced safety and security systems; enhancing device standards, and rising demand for integrated smart devices, such as tablets, voice assistants, and IoT-enabled devices. The number of houses with such appliances and systems in North America is greater than in other regions, which is the key reason the region generates the highest revenue for product and software providers.

Asia-Pacific (APAC) To Witness Fastest Growth

This APAC region is expected to grow at the highest CAGR, of around 11.1%, during the forecast period. The primary driving factor for this region is the increasing demand for intelligent residences in the developing countries of the region, such as South Korea, India, and China; the presence of a broad consumer base, and the rapid technological developments in such solutions.

Entertainment Category To Hold Largest Market Share

The entertainment category generated the highest revenue in 2021, and it is expected to remain the largest over the next few years. This would be due to the wide variety of solutions offered by technology providers for operating as well as controlling the entertainment systems within a house. For instance, Alexa, an Amazon product, can control lights, TVs, and alarms, deliver news and sports scores, and update users with other real-time information.

Increasing Adoption of Cost-Effective and Energy-Efficient Home Appliances

By using smart, energy-, and cost-efficient devices, consumers can lower the energy consumption of their homes through automatic function settings and operations. The growth of the market is also spurred by the substantial rise in the demand for smart home healthcare solutions, growth in the adoption of emerging technologies, such as IoT, in homes; and increase in the need for less-carbon-emitting solutions across the globe.

In addition, internet connectivity is being integrated with multiple medical devices to help in monitoring the health of patients and deliver a higher quality of nursing at their residences, thereby decreasing the need for the expensive healthcare services offered at hospitals, especially for elderly people.

Development of Smart Cities Boosting Technology Uptake

Globally, many countries are implementing green building policies, thereby creating huge opportunities for intelligent residential appliance and associated software providers. In the coming years, the buildings constructed under green initiatives would be equipped with advanced eco-friendly techniques, with the primary focus on energy conservation. The strong initiatives taken by governments in various regions to encourage the development of green buildings and the advancements in data communication technologies and connected devices would, thus, aid the market growth.

The successful integration of automation technology within homes by managed and professional service providers is a key aspect supporting the prosperity of the smart homes market. The easy availability of professional services, such as device installation, pre- and post-sale customer services, safety and security system integration, and amalgamation of the latest technologies within the current residential infrastructure, would allow for a substantial improvement in the adoption of such solutions.

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Rising Concern for Safety and Security among People

Now, people can keep an eye on their homes and the various rooms inside from anywhere across the world, with smartphone-app integrated residential security & access control systems. The customer can set security alerts as per requirement, avail of subscription packs for home surveillance under an expert's guidance, as well as informing the fire and police departments in the case of any emergency, aided by the remotely accessible feed from such smart residential security systems. In this decade, safety and security are the major concerns for the customers that will impact the acceptance of any safety and security technology. Here, access management systems play an important role in delivering safety and security to households. The rising demand for smart meters, smoke detectors, and plugs is also driving the growth of the market.

Moreover, during the COVID-19 pandemic, many people installed camera-based security systems with an in-built ultrasonic sensor that detects the presence of people at the door and automatically rings the bell when someone comes near it. In addition, market players provide a complete range of in-built monitoring systems to control electronic, electrical, and safety & security appliances from anywhere.

Key Players in Smart Homes Market Are:

• IBM Corporation
• General Electric Company
• Honeywell International Inc.
• Emerson Electric Co.
• Lutron Electronics Co. Inc.
• LG Electronics Inc.
• Cisco Systems Inc.
• Google Inc.
• Microsoft Corporation
• ABB Ltd.
• Siemens AG
• ASSA ABLOY
• Schneider Electric SE
• United Technologies Corporation
• Johnson Controls International PLC
• Hitachi Ltd.

Global Smart Homes Market Size Breakdown by Segment

The report analyzes the impact of the major drivers and restraints on the market, to offer accurate market estimations for 2017-2030.

Based on Product

• Lighting Control
  • Relays
  • Occupancy Sensors
  • Daylight Sensors
  • Timers
  • Dimmers
  • Switches
  • Accessories and Other Products
• Security and Access Control
  • Video Surveillance
  • Hardware
    • Cameras
    • Storage Devices
    • Monitors
    • Other Accessories
  • Software/Video Analytics
  • Services
• Access Control
  • Biometric Access Control
    • Fingerprint
    • Palm Recognition
    • Iris Recognition
    • Face Recognition
    • Voice Recognition
  • Non-Biometric Access Control
    • Card-based Readers
    • Multi-technology Readers
    • Electronic locks
    • Controllers
• HVAC Control
  • Smart Thermostats
  • Sensors
  • Control Valves
  • Heating & Cooling Coils
  • Dampers
  • Actuators
  • Pumps & Fans
  • Smart Vents
• Entertainment
  • Audio & Volume Controls
  • Home Theatre System Controls
  • Touch Screen & Keypads
• Smart Speaker
• Home Healthcare
  • Health Status Monitors
  • Physical Activity Monitors
• Smart Kitchen
  • Smart Refrigerators
  • Smart Coffee Makers
  • Smart Kettles
  • Smart 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 Software & Services

• Behavioral
• Proactive

Based on Sales Channel

• Direct
• Indirect

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.