The global smart home market size is expected to grow from USD 78.3 billion in 2020 to USD 158.10 billion by 2027, at a CAGR of 8.10 % during the forecast period. Smart homes are incorporated with advanced automated systems that control lighting, temperature, multi-media, security, thermostats, entertainment systems, window and door operations that can be controlled by the user through smartphones and computers. The appliances used in the smart home are connected through the internet which allows the user to control and monitor the home appliances remotely using a mobile or other network connected device. Use of the Internet of Things (IoT) in smart homes encourages manufacturers to promote automation in the household sector. Smart homes systems are often featured as wireless and wired. Wireless systems are easy to install, are cost efficient and are portable, whereas wired systems need professional installer, are expensive and are difficult to move.
Affordable technology, the threat of climate change, fluctuating electricity prices, safety & security and the growing adoption of cloud-based technologies and IoT are the major factor responsible for driving smart home market. Apart from the technology, smart homes help to reduce energy consumption, as consumers can decrease the energy usage through temperature settings. The manufacturers of smart homes have realized the adaptation of new ways to produce, deliver, and consume energy owing to the threat of climate change, fluctuating energy prices and energy security and supply concerns. However, security risk and bugs are the main challenges faced by smart home technology.
The lighting control market has witnessed considerable growth over the past few years. This market includes a significant number of products such as dimmers, timers, occupancy sensors, daylight sensors, and relays. These products are used either independently or in an integrated form. They can be integrated with home automation systems through wired and wireless technologies. To enable their automated operations, lighting controllers have to be integrated externally with communication protocols. However, lighting control manufacturers are now manufacturing products with inbuilt data connectivity. These controllers can be operated directly, without external communication protocols and connectivity. This is expected to create a considerable demand for such products, thereby creating opportunities for the players operating in the smart home market.
The prominent players in the market of smart home are Siemens AG (Germany), United Technologies Corporation (U.S.), General Electric Company (U.S.), Schneider Electric (France), Honeywell International, Inc. (U.S.), Ingersoll-Rand PLC (Ireland), Johnson Controls, Inc. (U.S.), ABB Ltd. (Switzerland), Legrand S.A. (France), Samsung Electronics Co., Ltd. (South Korea).
The smart home market in APAC is expected to grow at the highest rate during the forecast period. Factors driving the growth of the market in this region include strong economic growth, increased population, and improved standard of living, and rapid urbanization that leads to a sophisticated infrastructure. China is likely to account for the largest size of the smart home market in APAC in 2019. However, with the growth of the smart home industry and large-scale implementation of hardware and software solutions in smart homes in China and Japan, the market in these countries is expected to grow at a higher rate during the forecast period. APAC is considered as a huge market for smart homes because of the considerable rate of implementation of various products such as lighting controls, HVAC controls, security and access controls, among others, in the region.
Report : Smart Home Market - By Product (Lighting Control, Security and Access Control, HVAC Control, Entertainment and Other Controls, Home Healthcare, Smart Kitchen, Home Appliances, Smart Furniture) By Software and Service (Proactive, Behavioral) By Geography (North America, Europe, Asia Pacific, Middle East & Africa, Rest of the World) - Industry Analysis, Opportunity and Forecast 2020 To 2027