Home Automation Market

Home Automation Market Outlook

The home automation market revenue in 2022 was US$ 45.6 Billion. The market is expected to reach US$ 136.5 Billion by 2033, as it is estimated to grow at a CAGR of 10.6% for 2023 to 2033.

Attributes	Details
Estimated Year (2023) Market Value	US$ 49.7 Billion
Projected Year (2033) Market Value	US$ 136.5 Billion
CAGR% (2023 to 2033)	10.6%
Top 5 Vendor Market Share	Around 25%

Home automation, which is also known as smart home, is an automation system that allows users to control appliances like security devices, electrical outlets, lights, fans and so on via smartphone or tablets. The primary objective of this system is on security systems, personal protection, and surveillance, which includes smart lock systems for doors & windows fire alarms, surveillance equipment, and other sensor systems.

Home automation market consists 7.3% of the global automation market.

2018 to 2022 Home Automation Market Demand Outlook Compared to 2023 to 2033 Forecast

Home automation market is estimated to grow at a CAGR of 10.6% for the forecast period compared to the historic CAGR for the period 2018 to 2022 of 6.8%.

The home automation market is being driven by a growing demand for energy-efficient systems, rapid expansion in the IoT market, convenience & ease of use, technical advances, an increase in security threats and so on.

Additionally, rising millennial home ownership and increasing disposable income in developed economies are expected to drive automated home demand.

Furthermore, key players are concentrating on providing advanced solutions to enhance the efficiency and convenience of home management are creating a lucrative environment for the adoption of home automation technologies in the coming future.

Rising Government Initiatives for Smart City Technology, combined with Increasing Consumer Awareness of Smart Homes, Are Accelerating the Market Growth

Governments around the world are introducing the concept of smart cities and smart homes since it facilitates authorities in governance, in keeping accountability, and the helps in the reduction of corruption.

Furthermore, smart technology is rapidly expanding across industries. The home automation system are being explored and transformed by smart property technology.

Additionally, with the adoption of intelligent technology like self-diagnosing devices, smart security, smart entertainment, advanced self-health care, smart kitchen and so on are some of the primary factors driving home automation market growth.

Regional Analysis

North American region is analyzed to dominate the global home automation market with the share of 24.5% in 2022 and South Asia Pacific region is growing at the fastest rate in the global home automation market with the CAGR of 12.2 % during the forecast period of 2023 to 2033.

Increased adoption of advanced technologies such as artificial intelligence & internet of things, rising trends towards smart cities along with higher disposable income drive the demand for smart technologies in the North American market.

Additionally, presence of various startups namely Boca Raton, Sense, CUJO AI are emerging in the region and are contributing to the market growth of home automation technologies in the North American region.

Rapid market growth in the South Asia & Pacific region are attributed to the massive economic growth, increased housing & real estate construction, rising demand for energy-saving technologies, and so on.

Furthermore, rapid development & growth in the popularity of artificial intelligence, accelerated adoption of newer technology by the masses & the rapid rise in data collection from users by various organizations are factors influencing market growth in South Asia Pacific region.

Country wise insights

Rising Trends towards Smart Cities Are Accelerating the Growth of Home Automation in USA Market

USA region is analyzed to dominate the global home automation market with the share of 14.8% in 2022.

This market growth can be attributed to the various factors such as increasing governmental initiatives towards the smart cities, rising demand for automated luxury home appliances and so on.

Rising Security Concerns are Providing Lucrative Environment for the Growth of Home Automation Market in China

China region is growing at the fastest rate with the CAGR of 29.1% in the global home automation market, owing to the factors such as rising security concerns, rapid expansion of the residential flat culture leading to the increasing demand for advanced security systems and so on.

Technological Advancements in Past Coupled with the Rapid Rise in the Ageing Population is Driving the Growth of Home Automation Market in Germany

Germany region holds the second largest share of 11.2% in the global home automation market due to rising ageing population resulting in the increased demand for automated home appliances, introduction to the IoT & wide adoption of 5G technology and so on.

Category wise Insights

Why Luxury home automation system segment holds the largest share in Home Automation Market in 2022?

Luxury home automation system segment in home automation market holds the largest share of 32.4%, attributed to the various factors such as increased adoption of smart home solutions, rising growing incidences of geriatric populations and so on.

Additionally, increasing technological investments in the AI & IoT technologies coupled with the integration of various voice command systems like Alexa & Siri with various home appliances are the major reasons behind the increased adoption of luxury home automation technologies.

Why Safety and Security Segment Has the Larger Market Share in the Home Automation Market?

Safety and Security is analyzed to dominate the Home Automation market with the share of 26.7% in the home automation market owing to the factors such as introduction of smart grids together with the assistance of power line communication and so on.

Additionally, increasing concerns regarding the home safety due to the rapid rise in the terrorist attacks & increasing incidences of crime across the world. These are the key factors behind the increased market share of safety segment in home automation market.

What are the factors influencing the growth of Wireless Home Automation System in the Home Automation Market during the forecast period of 2023 to 2033.

Wireless home automation systems are analysed to be the fastest growing at the CAGR of 11.2% in the home automation system market during the forecast period of 2023 to 2033, owing to the factors such as the rising demand for wireless solutions together with the increasing utilization of the chips & ICs and so on.

Additionally, introduction to the Google Home Hub, Samsung Smart Things, and Apple Homekit are among the products that work on wireless networks.

Competitive Landscape

A rising trend towards smart city along with the rising awareness among the consumers regarding the smart home appliances are arousing the demands for home automation.

• In January 2023, Skyworks Solutions, Inc. in collaboration with Semtech Corporation had launched SKY66423-SX1261 for low-power wide-area networks (LPWAN). It incorporates Semtech's LoRa ConnectTM SX1261 transceiver with SKY66423 front-end module (FEM) for usage in a wide range of industrial and smart home automation.
• In January 2023, Shelly, a division of Allterco Robotics, Ltd, had launched eight new smart home automation devices at the Consumer Electronics Show (CES). It has enhanced the functionality of their latest devices while remaining faithful to the brand's principal advantages of affordability, interoperability, accessibility, energy efficiency, and simplicity of installation.

Scope of report

Attribute	Details
Market value in 2022	US$ 45.6 Billion
Market CAGR 2023 to 2033	10.6%
Share of top 5 players	Around 25%
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	USD Billion for Value
Key Regions Covered	North America, Latin America, Europe, South Asia & Pacific, East Asia and the Middle East & Africa
Key Countries Covered	USA, Canada, Germany, United kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Australia & New Zealand, GCC Countries, Turkey and South Africa
Key Segments Covered	Product Type, Application, Networking Technology and Region
Key Companies Profiled	AMX ADT Pulse Control4 Corporation Crestron Vera HomeSeer SmartThings Frontpoint Savant Siemens AG Johnson Controls Honeywell
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Home Automation Market by Category

By Product:

• Luxury home Automation System
• Mainstream Home Automation System
• Managed Home Automation System
• DIY (Do It Yourself Home Automation System)

By Application:

• Safety and Security
• Lighting
• Entertainment (Audio and Video)
• Heating, Ventilation and Air conditioning
• Others

By Networking Technology:

• Wired Home Automation System
• Wireless Home Automation System
• Computing Network Home Automation System
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa

Frequently Asked Questions

Which are some leading companies which offer Home Automation?

Some leading of the home automation are AMX, ADT Pulse, Control4 Corporation and Crestron.

Which region is expected to showcase high growth in Home Automation demand?

South Asia Pacific is estimated to have the highest growth for the home automation during the forecast period of 12.2%.

What is the driving demands for implementing Home Automation?

Rapid expansion of smart cities along with the growing demand for smart home appliances.

Which Product Type had the largest market share for the Home Automation in 2022?

Luxury home automation segment had the largest market share for the home automation of 32.4% in 2022.

Which application has the highest CAGR for the Home Automation?

Heating, ventilation and air conditioning application has the highest CAGR of 10.8% for the forecast period.

Which are the top five countries for Home Automation?

USA, Germany, Japan, United kingdom and China.

What was the market share of South Asia and Pacific region for Home Automation in the year 2022?

The market share of South Asia and Pacific for the year 2022 for the home automation was 15.4%.

What was the market share of North American for the year 2022 for Home Automation?

North America had a market share of 24.5% in 2022 for home automation.

Which country has the highest CAGR for the forecast period?

USA has the highest CAGR for the forecast period, which is 14.8%.

What is the estimated market value of Home Automation for 2024?

The estimated market value for Home Automation for the year 2024 is US$ 54.3 Billion.

What is the growth rate for North America for Home Automation for the forecast period?

For North America region, the CAGR for the forecast period is estimated to be 6.5% for the home automation.