The smart home services market size is projected to be valued at USD 7.5 billion in 2023 and is expected to rise to USD 31.41 billion by 2033. The sales of smart home services are expected to record a significant CAGR of 15.4% during the forecast period. Various trends influencing smart home services are:
| Attributes | Details |
|---|---|
| Smart Home Services Market CAGR (2023 to 2033) | 15.4% |
| Smart Home Services Market Valuation (2023) | USD 7.5 billion |
| Smart Home Services Market Valuation (2033) | USD 31.41 billion |
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According to Future Market Insights, a market research and competitive intelligence provider, the market value of the smart home service market increased at a CAGR of around 15.1% from 2018 to 2022.
Based on service, the integrated service is rapidly affecting the smart home service industry. This segment's revenue is expected to record a CAGR of 16.1% through 2033.
The increasing use of cognitive solutions in smart homes is driving up demand for maintenance and installation services, propelling the industry forward. Furthermore, the growing demand for energy management services is expected to drive market growth. Smart home services have witnessed tremendous improvements in recent years to provide optimal safety and comfort to occupants. As traditional technologies such as open protocols are taking a backseat, market players are keen on launching novel connective technologies and systems to facilitate advanced automation metrics.
These factors are indicative of lucrative growth prospects in the smart home services market during the forecast period. Furthermore, rapid advancements may lead the market towards a value of USD 31.41 billion with a progressive growth rate of 15.4% by 2033.
The increasing need for monitoring and robust security is likely to aid the growth of the smart home services business in the coming years. Smart homes improve entertainment capabilities such as content sharing and aid consumers in operating their entertainment equipment from remote places.
Additionally, the rising demand to reduce energy utility costs due to the adoption of gadgets in residences drives market expansion throughout the forecast period. Furthermore, the widespread use of smart lighting, smart outlets, smart fans, and smart ACs are more likely to drive the demand for smart home services in the coming years. Nonetheless, the high cost of smart home technology, as well as rising worries about privacy and abuse of smart home services, may be averse to industry growth. However, the robust connection provided by smart home services is expected to counteract the adverse impact of market restraints in the coming years.
According to Icontrol Network's 2015 'State of the Smart Home' research, around 46% of respondents claimed that entertainment is a significant component in smart home adoption. As a result, these factors are projected to fuel the growth of the worldwide smart home services industry over the forecast period.
The implementation of building automation components, particularly HVAC systems and renewable energy sources, improves the possibility to increase the energy efficiency quotient of buildings further than intended.
Increasing concerns regarding greenhouse emissions and frequent climatic changes have urged manufacturers to implement BAS (breach and attack system) to smartly monitor and control electricity consumption in residential and commercial complexes.
By integrating these technologies, it is possible to control the thermal settings of centralized heating and cooling systems and improve thermal storage capabilities and electrical characteristics to meet the electricity grid needs.
Apart from this, smart home services potentially manage and control water and gas supply, further correcting any inefficiencies and excess waste. Sensors, sub-meters, and alerting systems detect water and gas leakage, facilitate uninterrupted supply and ensure appropriate consumption of electricity to improve decarbonization capabilities.
Alternatively, BAS can help mitigate unprecedented problems in real time, which in turn creates a more preventive posture in residential and commercial spaces. These solutions can be tailored according to the size and capacity of facilities, helping managers and supervisors to control and provide an uninterrupted supply of electricity, water, and gas.
The United States is expected to lead the market, valued at USD 11.37 billion by the end of 2033, with a CAGR of 16.0%. A recent poll conducted in the United States found that safety-focused smart home services are in high demand. Customers are integrating smart home technologies such as smart lighting solutions and energy management services to make their lives easier and more convenient. The North American market benefits from the presence of several key companies, in addition to being an early adopter of modern technologies. The growing demand for modern innovations like intelligent homes, and electronic gadgets, and the increasing incorporation of IoT devices in the United States has resulted in the expansion of the smart home services market.
The markets in the Middle East and Latin America are expected to grow steadily. According to a Ciena study report released in June 2021, more than half of adults in the Kingdom of Saudi Arabia (57%) and the United Arab Emirates (54%) believe the future of the internet is likely to be driven by their desire to become more energy efficient. A huge proportion of people in both countries (94 percent in each) are considering engaging in more virtual activities to reduce their carbon footprint.
The use of smart home systems and consumption control devices is increasing (40 percent in the UAE and 46 percent in the KSA). Metro and edge networks are being asked to meet ever-increasing demand as a result of these key market trends. To become more efficient and reduce energy consumption, the network must, of course, evolve in response to consumer demand.
In this region, rising demand for connected home services is supplementing industry growth. Additionally, the demands for emerging technology, the desire for lifestyle up-gradation, and the popularity of voice technology in emerging markets are anticipated to surge the development of smart home services. The region's key players are concentrating their efforts on collaborating with other well-known companies to develop and deploy innovative smart home products. For example, Vivint Smart Home, Inc. and Mosaic Acquisition Corp. announced a merger in January 2020. The merger's goal was to turn the organization into a publicly traded company while also improving the smart home platform.
Existing industrial and service companies are integrating with IT to create new value while also influencing industry and service structure. By integrating smart concepts through IT convergence, it is possible to deliver integrated services such as home environment, transportation, online service, and healthcare.
As a result of information technology convergence technologies, the smart home sector is evolving in a variety of ways. Smart technology can be used in any industry to provide integrated services by leveraging previously unavailable services or partnerships. Smart home services are constantly evolving as a result of the advancement of ICT and the proliferation of various IoT devices. Smart home services can provide a variety of services through a single device.
As more people work or study from home, a variety of IoT devices are expected to make work and study more pleasant during and after the epidemic. The home now has a special meaning for consumers in the post-Covid era, with space for business, recreation, and study. As a result, families are increasingly seeking integrated solutions that improve their quality of life.
These factors have resulted in a massive industry for smart home services, which is anticipated to drive market growth. Schneider Electric, for example, and Livspace, a home interior and remodeling platform, agreed to collaborate in August 2021.
The market for smart home services is neither fragmented nor consolidated. The companies are developing business strategies that reflect an increased emphasis on expanding their existing global distributor networks. To expand their reach and maintain their market position, the key players employ strategies such as product innovation, mergers, and acquisitions.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Türkiye, Northern Africa, and South Africa |
| Key Segments Covered | By Services, By Solution, Region |
| Key Companies Profiled | Honeywell International; Beijer Electronics; ABB; Siemens AG; Johnson Controls; Schneider Electric; General Electric; Legrand; Lutron Electronics Co; Control4 Corporation |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The smart home service market CAGR for 2033 is 15.4%.
The market is estimated to reach USD 31.41 billion by 2033.
Key smart home service market players are developing it by entering new markets.
The market is estimated to secure a valuation of USD 7.5 billion in 2023.
The key market players are Amazon, Apple, and Google.
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Smart Home Service Market
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