|Status : Published||Published On : Jul, 2018||Report Code : VRICT5007||Industry : ICT & Media||Available Format :||Page : 120|
The global smart home market is projected to reach USD 89.9 billion by 2024, registering a CAGR of 14.2% during the forecast period. Significant advancements in IoT market, and increasing need of the consumer for convenience, security and safety, propelling the growth of the market.
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.
It 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 make accessible to middle-income category people, as a result, driving the growth of the global smart home market.
Strong initiatives undertaken by the government to promote green building and green cities is creating ample opportunities for the growth of the global smart home market. 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
Based on product, the global smart home market is categorized into lighting control system, home entertainment system, smart home healthcare, smart home appliance, HVAC control, and security & access control, wherein home entertainment system category accounted for largest share in 2017 owing to increasing disposable income worldwide.
Insight by Technology
On the basis of technology, the global smart home market is segmented into Bluetooth, Wi-Fi, RFID, GSM/GPRS, and others. Of all, the Wi-Fi category is estimated to hold the largest share in the market in 2018. This category is also expected to witness 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 growth of the global smart home market. 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 factor driving the growth of the 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.
Key factors hindering the growth of the smart home market is the issues related to breach in security and privacy.
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.
North America has been one of the largest consumers of smart home during the forecast period. 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. Asia-Pacific is observed to witness significant growth in the global smart home market during the forecast period. 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.
GLOBAL SMART HOME MARKET, BY REGION (2017)
Some of the key players operating in the global smart home market are 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.