The global smart homes market is projected to reach $70,208.6 million by 2023, growing at a CAGR of 14.0% during 2017–2023.
Healthy growth expected in global smart homes market during 2017–2023
The smart homes market is advancing because of the increase in the internet penetration, globally, and a substantial rise in the use of automation technologies such as internet of things (IoT). Recent developments in home automation technologies such as the introduction of smart camera and voice control devices, are contributing to the growth of the market, as the prices of sensors and processors have decreased to a great extent. Multiple technology manufacturers are investing in and promoting automation in the residential sector, thereby supporting the market growth.
A major factor responsible for the growth of the global smart homes market is the increase in the demand of smart home appliances. The integration of advanced technology has aided various household appliances, such as refrigerators, dishwashers, and washing machines, to function smartly and use less energy, thereby increasing the popularity of such devices during the historical period (2013-2016).
Insights on market segments
On the basis of product, the home entertainment system category was the largest revenue contributor to the smart homes market during the historical period. However, the smart home healthcare category is expected to witness the highest CAGR during the forecast period. Amongst the multiple technologies, Wi-Fi was the most widely adopted, which is why it generated the largest revenue in the market. However, the market for the RFID category is projected to be the fastest growing during the forecast period. On the basis of security & access control, the market for audio-video surveillance held the largest revenue share during the historical period, whereas fingerprint recognition is expected to observe the fastest growth during the forecasted period.
Smart homes market to grow rapidly in APAC
Geographically, North America has been the major smart homes market up till now. APAC is expected to witness the fastest growth throughout the forecast period owing to the developments in home automation technologies, and technological advancements in the telecom industry, along with setting up of innovative hardware and software manufacturing units.
The telecom industry in APAC has shown rapid growth due to the increase in the number of internet subscribers. This has resulted in the adoption of smart devices at a rapid pace, which is further catalyzing the smart homes market growth by increasing the use of smart phones and tablets for monitoring different household equipment. Due to the growing concerns related to inappropriate energy usage and the rapid depletion of natural resources, the region has a high potential for adopting smart home solutions to save energy for future generations.
Rise in the demand for smart home appliances is driving the market growth
The factors driving the growth of the smart homes market include the rapid increase in the demand for smart home appliances and smart home healthcare solutions, increased adoption of IoT in the residential sector, and mounting need for energy-saving solutions and lowering the carbon footprint. The demand for smart home appliances is rising at a rapid pace, as customers are more adaptive and understand the importance and benefits of installing energy-efficient electrical appliances at homes. Due to the adoption of smart, energy-efficient home appliances, which come with automatic temperature settings, automated operations, and arranged programmable processes, consumers are saving energy. Technological advancements have permitted various smart appliances at different locations within a house to be controlled by one device, such as a smartphone or remote. Therefore, the ease and comfort associated with energy-saving smart home appliances would continue to attract more consumers, leading to the market growth, globally.
Moderate intensity of rivalry among key players
Most of the key vendors in the smart homes market are strongly focused on upgrading their product and service offerings to meet the current and future demands for smart home solutions through mergers & acquisitions and partnerships. For instance, Johnson Controls and Hitachi Ltd., via their joint-venture, recently announced the expansion of their reach in Asia with the use the technology provided by Ayla Networks. Through this, the companies are focusing on integrating and adopting advanced technologies to provide innovative smart heating, ventilation, and air conditioning (HVAC) products, globally.
The global smart homes market is moderately competitive as players are investing in the research and development of new home automation solutions. Some of the key players operating in the 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.
GLOBAL SMART HOMES MARKET SEGMENTATION
Market Segmentation by Product
Market Segmentation by Technology
Market Segmentation by Geography