Smart homes refer to smart buildings, usually the new ones that are equipped with special electronic features such as structured wirings and wireless devices, which enable occupants to remotely control an array of automated home devices by software commands. The market for smart homes is growing rapidly, due to advancement in technology expansion in home automation and wireless sensing devices.
GLOBAL SMART HOMES MARKET, BY REGION, $M (2013 – 2022)
The growth in global smart homes market is further attributable to factors such as significant advancements in internet of things (IoT), increasing need for residential safety & security, growing awareness among consumers regarding energy saving solutions having lower carbon footprint, and huge investments from number of home automation manufacturers in IoT and expanding their product portfolio. In addition, rapid growth in global smart homes market is anticipated on account of increase in demand for smart home appliances. Adoption of advanced electronic technology is enabling various household appliances, such as refrigerators, dishwashers, and washing machines, to operate smartly and with low energy wastage, which is contributing to the growth of global smart homes market. Rising levels of disposable income have further enabled consumers, particularly middle class, to opt for more convenient solutions such as cloud based smart home solutions. This has increased the demand for on-demand and value based home automation solutions globally.
The global smart homes market is expected to grow at a CAGR of over 14% during the forecast period, to reach $70,208.6 million by 2023. A significant growth in demand for smart homes is anticipated due to growth in adoption of connecting technologies such as IoT and augmented use of automation technologies across household sector. In addition, development of cost effective automation solutions such as wireless lighting sensors, substantial savings on operational cost, and smart energy management, are other major factors fueling growth of the global smart homes market.
One of the major trends observed in the global smart homes market is the presence of strategic alliance or business partnerships between automation technology providers, various telecommunication companies, and data analytics software developers. In addition, increase in the integration of cloud based home automation services such as wireless home security and surveillance, and real-time temperature monitoring system are also few of the major trends observed in the global smart homes market. Real-time temperature monitoring system allows the occupants to adjust the temperature of heating and cooling appliances, cutting energy wastage and thus lowering the electricity consumption cost.
Global smart homes market is driven by factors such as significant increase in demand for smart home appliances, surge in demand for smart home healthcare solutions, increased adoption of IoT and related technology in household sector, and rising need for energy saving & low carbon emitting solutions, globally. Demand for smart home appliance is gaining pace, as consumers are realizing the importance and benefits of installing energy efficient electrical appliances at homes and offices. With adoption of smart energy efficient home appliances, consumers are saving big on usage of energy, by means of automatic temperature settings, automated functioning, and scheduled programmable operations.
Demand for smart home healthcare is also a key factor driving the growth of global smart homes market. Use of latest mobile health and digital technologies is further escalating the demand for smart home healthcare in the global smart homes market. Smart home technology, in combination with innovative and advanced health monitoring technologies helps in detecting health status changes. Further, integrated health monitoring components help in maintaining higher quality of nursing at homes, in turn replacing the need for comparatively expensive healthcare services at hospitals for elderly people.
Strong initiatives from government across various regions to promote development of green buildings, and advancement in data communication technology & connected devices are some of the key opportunities for the smart homes market to grow potentially. Across the globe, various countries are implementing green building policies, thus creating huge opportunities for the smart homes market. Buildings constructed under such green initiatives would be equipped with eco-friendly techniques focused at huge energy conservation. Moreover, advancement in data communication technology & connected devices, such as near field communication (NFC), Wi-Fi and Bluetooth, is expected to create huge demand for smart homes solutions. Rapid proliferation of Wi-Fi technology in residential sector is expected to aid the expansion of the global smart homes market. This include Wi-Fi enabled lighting control system, security & threat control, wireless home appliance operation, and entertainment system.
Successful implementation of automation technology within household sector through managed and professional services is another opportunity supporting the growth of global smart homes market. Smart home professional services, such as expert installations, would allow significant improvement in implementation of smart homes solutions, including pre-sales and post sales customer service and integration of new technologies within current residential infrastructure.
The intensity of rivalry in the global smart homes market is moderate. Most of the major vendors in the smart homes market are actively focused on enhancing their products and service offerings to meet the ongoing demand for smart homes solutions, through activities such as merger & acquisition, and partnerships. Vendors such as Cisco Systems Inc. recently entered in a partnership with SAS Institute Inc. to create an edge-to-enterprise IoT analytics platform. The platform would help organizations with the application of analytics software at different layers of networks based on different requirements.
Some of the key players operating in the global smart homes market are Honeywell International Inc., Siemens AG, Schneider Electric SE, ABB Limited, Johnson Controls Inc., Samsung Electronics Co. Ltd., United Technology Corporation, and Cisco Systems Inc.
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