The smart homes market size is expected to advance at a CAGR of 10.2% during 2021–2030, to reach $196.5 billion by 2030. This is ascribed to the rising demand for smart home appliances, increasing consumer income, and surging safety and security concerns. The integration of advanced technology in household appliances, including lights, vacuum cleaners, refrigerators, fans, and washing machines, has aided them in working smartly and cost-efficiently.
In addition, the market is advancing because of the growing internet penetration globally, increasing demand for touchless technology and at-home exercise equipment, and rising use of automation solutions, such as the internet of things (IoT) and artificial intelligence. The recent developments in home automation technologies, such as the introduction of touchless doorbells, smart security systems, and voice assistant devices, are propelling the growth of the market. This has been possible since the prices of sensors and processors have decreased to a great extent due to the technology providers’ partnerships and R&D initiatives.
APAC is expected to witness the fastest growth over the next few years, primarily due to the increasing consumer interest in smart domestic appliances and large-scale housing developments in Australia and China. Similarly, in India, the number of under-construction residential units is increasing, which is why companies in the market are establishing their branches or production units in the country due to the easy availability of raw materials and labor.
Many players in the market possess strong sales channels and distribution networks to provide their products to end users. Indirect sales channels offer smart appliances and products through both online and physical/offline modes. This sales channel includes third-party cellular network carriers, dealers, wholesalers, retailers, direct vendors, and value-added resellers.
Online sales involve selling through exclusively e-commerce platforms. Consumers can easily review products with all their specifications, compare different designs, and order them online. The setup and installation assistance for smart home technologies and systems are usually provided when consumers buy the products from an e-commerce portal. Apart from this, individual distributors procure equipment from a variety of suppliers, for sale to end users within their geographical areas.
Most of the appliance providers in the smart homes market are primarily focused on upgrading their product and service offerings, to meet the current and future demands for these solutions.
Some of the major players operating in the 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, and Hitachi Ltd.