The global smart home market was valued at USD 35.4 billion in 2017 and is further anticipated to attain USD 89.9 billion by 2024. The market is expected to witness a CAGR of 14.2% during the forecast period. The market is growing every year due to constant evolution in technology, globally. Smart home technology has become more affordable and accessible to almost every other average household. The smart home industry is developing globally and attracting buyers from several regions.
Smart home is considered to be a major evolution for residential spaces and the main objective of this technology is to make the living of people more convenient, comfortable, entertaining, sustainable and secure. In some recent past years, this technology was largely acquired by very wealthy people but at present, the technology powered by the gadgets and computing technologies are accessible to middle-income category people, as a result, these factors are fuelling the growth of the smart home market.
Few years back marketing of smart home solutions was in the form of homes that comprises of an advanced security system such as smart door locking and camera. Strong initiatives undertaken by the government to promote green building and green cities is creating opportunities for smart homes market to grow globally. Green building initiatives are undertaken by several regions today as it helps in reducing the energy demand for a building and optimally utilizing renewable resources. The low carbon usage in this structure helps in achieving large energy consumption savings.
Insight by Product
On the basis of product, the smart home market is segmented into lighting control system, home entertainment system, smart home healthcare, smart home appliance, HVAC control, and security & access control. Among all these product categories home entertainment system held the largest share in the market and is anticipated to generate USD 21.9 billion by 2024 due to increasing disposable income across the globe.
GLOBAL SMART HOME MARKET SHARE, BY PRODUCT (2017)
Insight by Technology
Based on technology, smart home market is categorized into Bluetooth, Wi-Fi, RFID, GSM/GPRS and others. Among these technologies, Wi-Fi account for the largest share in the market, globally and is also predicted to witness the fastest growth during the forecast period as the technology is easily accessible from any devices, cost-effective and easy to integrate.
Significant advancements in IoT market are driving the demand for smart home market, globally. The use of IoT in smart home technology includes smart appliances such as washers, refrigerators and dryers. It also involves the use of smart home energy equipment that includes smart thermostats and smart lighting and the security and safety systems such as sensors, cameras, monitors and alarm systems. All these systems provide convenience to the households as large number of connected devices can handle large operations and helps the residents to perform other tasks by providing them the benefits to save time.
Increasing need of the consumer for convenience, security and safety is another driving factor for global smart home market. The technology helps the household in managing all of their home devices from one place. The convenience feature provided by technology plays a significant role and makes it more appealing. As being able to control all of the technology of home from one place is massive innovation of technology and home management.
A smart home provides flexibility in accommodating any new technology, devices, and appliances. The ability of this technology to merge and accommodate the latest technologies provides flexibility in performing home management to the homemakers and helps them in upgrading their lifestyle technology. These features are contributing to the increase in demand in urban areas among all the middle-income category households thereby contributing towards the growth of the global smart home market.
However, the issues related to breach in security and privacy is the major restraint observed in the growth of the smart home market.
Globally, industry players in the smart home market are leveraging market growth by providing several automation products such as MES and DCS. The key players are establishing connected devices and are offering M2 smart solutions and services to the users. This device enables improved customer service and connectivity and will further contribute towards the growth of the market.
Geographically, North America is the largest smart home market since the region is increasingly emphasizing on developing technology to save energy and lowers the usage of carbon emission-oriented solutions. Rapid implementation of IoT technologies in this region with the perspective of reducing the emissions of fossil fuels is driving the growth of the market.
GLOBAL SMART HOME MARKET, BY REGION (2017)
Asia-Pacific smart home industry is expected to witness the fastest growth at 16.5% CAGR during the forecast period, globally. The Indian market is continuously upgrading its technology to make their life easier and convenient. There are several initiatives undertaken by the Indian government to help the citizens of the country to use this technology and ensure a secure, convenient and safe environment for them.
Some of the key players in the global smart home market include Honeywell International Inc., Siemens AG, Schneider Electric SE, Johnson Controls Inc., Samsung Electronics Co. Ltd., Legrand, ABB Ltd., Acuity Brands, Inc., Crestron Electronics, Inc., United Technologies Corporation, Ingersoll Rand PLC and Nest Labs Inc.