The global smart home automation market is estimated to grow from USD 72 Billion in 2022 to USD 168 Billion in 2032 while displaying a CAGR of 8.84% during the 2022 to 2032 period. Increasing penetration of the Internet of Things (IoT) has evolved the machine to machine communication which has motivated users to adopt smart home automation technology.
| Data Points | Key Statistics |
|---|---|
| Smart Home Automation Market CAGR (2022 to 2032) | 8.84% |
| Smart Home Automation Market Value (2022) | USD 72 Billion |
| Smart Home Automation Market Value (2032) | USD 168 Billion |
| Smart Home Automation Market Driver | Innovative smart devices offer safety, convenience, efficient energy saving, and lower utility cost products, which is expected to benefit the smart home automation market during the forecast period. |
The United States is expected to emerge as the leading country during the predicted period. The country's preference for modern technologies such as artificial intelligence and the internet of things, along with increased disposable income, boosts demand for smart technologies. Many startups are sprouting in the region, adding to the market's growth. As a result, the market in North America is predicted to expand considerably throughout the forthcoming years.
The Asia Pacific is predicted to rise rapidly throughout the projection period due to increased expenditure on smart technologies. Owing to the dominance of important smart device makers, China is likely to monopolize the region's share. Due to increased demand for automated solutions, India is likely to grow at a high CAGR throughout the upcoming years.
The European market for smart home automation is predicted to be the second-largest. This can be attributable to rising disposable income and increased product availability at reasonable rates. The region has seen a considerable increase in the number of powerful market participants over the years. Various government regulations in European nations include the implementation of smart lodging technologies due to their sustainable environmental effects and power-efficient solutions.
Manufacturers are embarking on a high-bandwidth wireless protocol with extremely low power consumption and latency. This enables demanding applications such as wireless VR and IoT. These technologies are required for smart house operations. Furthermore, when combined with energy harvesting technologies used in smart homes, important participants in smart home automation prolong the battery life of gadgets and enable the battery-free functioning of wireless devices such as sensors.
With a wide range of address security solutions, leading firms provide continuous end-to-end protection to all appliances and other elements. It includes hazards like infiltration, theft, gas leaks, and fire warnings. Companies are also producing an AI-powered safety gadget that detects people without masks in neighboring buildings.
Smart homes confront new security risks as automation and communication technologies improve. Smart sensors and smart surveillance are used by various vendors to prevent theft. They are working on motion, touch, and fire sensors, as well as presence detectors. Due to the networked gadgets in smart homes, cybersecurity is an essential component of home automation. These technologies provide homeowners with peace of mind that their house is safe from outside and internet intruders.
Home automation technology, by providing features such as artificial lighting, temperature settings, and safety considerations, naturally makes your life simpler. With the new technology, entrepreneurs have introduced a touchscreen smart thermostat with a two-wire retrofit design that also delivers smart automation features such as ideal comfort, lighting effects, appropriateness, and energy savings.
Startups are developing a wireless, communicative door striking. It connects with other smart devices in the home environment by utilizing smart home connectivity technologies. It interfaces through Bluetooth Low Energy (BLE) and Z-Wave wireless technologies. The locks may be operated remotely using a smartphone app. This allows homeowners to provide access to others at certain periods and receive real-time notifications with a record of house access.
Growing Inclination of Consumers toward Smart Home Technology to Strengthen the Market
Smart technology is penetrating various industries and transforming the home automation system landscape. With the introduction of smart technology like self-diagnosing equipment, smart entertainment, modern self-health care, and smart kitchen, among others, automation is developing significantly.
Integration of modern technologies such as IoT, AI, and ML, the demand for smart devices is expected to rise in the coming time. According to a Voicbot.ai survey, in January 2020, about 87.7 million US consumers were using smart speakers. The significant figure of such consumers shows the growing inclination of consumers toward the adoption of smart home automation technology. Further, smart city projects are growing in number across the globe, surging the demand for home automation businesses.
With access to home accessories from remote locations, users can regulate their home appliances in their absence. They can also keep a watch on any activity taking place within the house through video surveillance systems. For instance, in February 2022, India-based home automation company, One Switch, announced the launch of franchising options for the expansion of their smart home automation services. The eco-friendly solutions such as automatic water sensors and motion sensors, offered by smart home companies like One Switch, have also helped in reducing electricity bills and enhancing the overall home environment. Attributed to such factors, the smart home automation market is expected to augment the smart home automation market size during the forecast period.
Expensive Products and Limited Knowledge Regarding the Technology to Hinder the Market Growth
Automation tools and equipment are expensive, thus, users with average or below average disposable income find it challenging to buy such modern services. Due to its high cost, there is polarization in the procurement of such advanced equipment. Thus, the cost barrier is anticipated to play a significant role in limiting the market growth during the forecast period. Further, various users are yet not well familiar with such technology which limits the adoption of smart home automation devices. Thus, the complicated technologies and applications are likely to inhibit the market growth in the assessment period.
However, increasing implementation of smart TV, light automation, face recognition doorbells, smart nurseries, and video monitoring, owing to a number of benefits offered by these is expected to act as a significant counter to the smart home automation market during the forecast period, and magnify the market size.
Increasing Innovative Property Security System to act as an opportunity for the Market
Players in the market are making a significant investment in developing innovative and advanced smart security systems to meet the growing security demands of the consumers, which is expected to act as a significant opportunity for the smart home automation market in the forthcoming period.
In August 2020, Hero Electronix launched a wide range of address security systems under Qubo Shield to offer continuous end-to-end security to all appliances and other aspects. It covers threats like theft, gas leak, fire alert, intrusion, and others. The company also launched AI-based safety equipment to detect persons without masks on the nearby premises.
The adoption of smart doorbells with video and audio, AI-based biometric, and face recognition capabilities is rising, which will provide high dividends to the market in the forecast period.
Smart Home Automation for Entertainment to experience significant Upsurge
Based on application, the market can be segmented into lighting, security, HVAC & energy management, entertainment, and smart kitchen. As per the analysis, the entertainment segment is anticipated to dominate the market during the forecast period. According to Future Market Insights, a CAGR worth 7.8% is anticipated for the segment. Growth can be attributed to the increasing efforts of manufacturers to offer connected home entertainment products through smart technologies such as smart speakers to augment the entertainment experience. Such innovations are likely to benefit the segment growth in the forecast period.
In May 2019, Samsung Electronics Co., Ltd. announced that all 2019 Samsung Smart TVs and select 2018 TV models would feature the recently launched Apple TV app and offer AirPlay 2 support in over 100 countries. This would allow its consumers to enjoy Apple TV channels and iTunes TV shows and movies on Samsung smart TVs. Such initiatives are expected to benefit the segmental growth during the forecast period.
Wireless Smart Home Automation to take the Cake
By technology, wireless smart home automation is expected to take centerstage, accumulating a revenue share worth 44% in 2022. As per FMI’s report, the segment is further poised to grow at a CAGR of 7.6% across the forecast period ranging from 2022 to 2032. Advancements in connectivity is attributed as the chief market growth accelerator.
Given that wireless technologies are far less invasive, their uptake across homes is rising rapidly. Furthermore, wireless automation is far more economical in terms of power consumption and cost. For instance, a basic smart home installation would typically cost between 2-6% of one’s property value, which is far lesser compared to a conventional wired home.
Growing Inclination toward Advanced Technologies to Boost the Smart Home Automation Market in North America
As per the analysis, North America is anticipated to dominate the global smart home automation market during the forecast period, registering a CAGR worth 8% from 2022 to 2032. Domination of the market can be attributed to the increasing inclination of the region towards the adoption of advanced technologies such as AI, IoT, and ML.
The increasing collaborations among players in the region are expected to benefit the regional market during the forecast period. For instance, in August 2020, ADT Inc. announced a long-term partnership with Google LLC to provide smart home security solutions across the United States. Further, Google has invested USD 450 Million in ADTC Inc., in order to increase the smart home security solutions. Thus, the market in North America is expected to grow significantly during the forecast period.
Increasing Disposable Income in Europe to Drive the Regional Market
As per the analysis, the market for smart home automation in Europe is expected to be the second-largest, expected to flourish at a 7.7% CAGR from 2022 to 2032. This can be attributed to the increasing disposable income and product availability at affordable prices.
Furthermore, renowned players of the region are increasing their product portfolios to meet the needs of consumers in various application areas within households, including water conservation, and security.
Germany is anticipated to be the fastest-growing country in the region. As per a survey conducted by a German industry group Bitkom, 41% of all Germans had at least one smart home device installed in 2021. Such factors are expected to benefit the regional market growth during the forecast period.
Presence of Developing Countries to Augment the Regional Market Size
According to the study, the Asia Pacific smart home automation market is expected to grow at a CAGR of 7.5% during the forecast period ranging from 2022 to 2032. This can be attributed to the presence of developing countries such as India and China.
China is expected to dominate the regional market due to the presence of established smart device manufacturers. And, India is likely to gain rapid CAGR during the assessment period owing to the rising demand for automated solutions.
Furthermore, globally established players in the region are collaborating with regional players, which will drive the market growth. For instance, in April 2021, Schneider Electric collaborated with India-based home renovator, Livespace. Thus, the market in APAC is expected to flourish significantly during the forecast period.
Given the ever-increasing scope of automation in homes, prominent service providers are seizing this opportunity to introduce highly advanced and seamless automation solutions, factoring in the cost associated with installing such systems. Furthermore, various start-ups offering smart home automation solutions have acquired importance in the past few years. Some notable start-ups in this space are as follows:
| Start-Up | Alarm.com |
|---|---|
| Origin | United States |
| Year of Establishment | 2000 |
| Start-Up | Netatmo |
|---|---|
| Origin | France |
| Year of Establishment | 2011 |
| Start-Up | Nest |
|---|---|
| Origin | United States |
| Year of Establishment | 2010 |
| Start-Up | Notion |
|---|---|
| Origin | United States |
| Year of Establishment | 2013 |
| Start-Up | Ajax Systems |
|---|---|
| Origin | United States |
| Year of Establishment | 2011 |
| Start-Up | iDevices |
|---|---|
| Origin | United States |
| Year of Establishment | 2010 |
| Start-Up | Caavo |
|---|---|
| Origin | United States |
| Year of Establishment | 2015 |
| Start-Up | Unified Remote |
|---|---|
| Origin | Sweden |
| Year of Establishment | 2010 |
| Start-Up | Bond Home |
|---|---|
| Origin | United States |
| Year of Establishment | 2016 |
| Start-Up | Xped |
|---|---|
| Origin | Australia |
| Year of Establishment | 2006 |
In August 2021, Alarm.com introduced Ambient Insights for alarm response, a solution which recognizes activity around a property and delivers contextual information to monitoring stations in the event of an alarm. The stations can use this real-time data to prioritize alarms and dispatch police, fire or emergency medical services to properties faster. The platforms further allows for a wider range of emergencies and reduces dispatches for false alarms
Key players in the global smart home automation market include Control4 Corporation (USA), BB Ltd. (Switzerland), Crestron Electronics, Inc. (USA), Ingersoll-Rand plc (Ireland), Honeywell International Inc. (USA), Johnson Controls (USA), Leviton Manufacturing Company, Inc. (USA), Legrand SA (France), Lutron Electronics Co., Inc. (USA), Schneider Electric (France), and Siemens AG (Germany).
Recent Developments in the Industry include
| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 8.84% from 2022 to 2032 |
| Market Value in 2022 | USD 72 Billion |
| Market Value in 2032 | USD 168 Billion |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | USD Billion for Value |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Component, Technology, Application, Region |
| Regions Covered | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Key Countries Profiled | USA, Canada, Mexico, Brazil, Germany, France, Italy, UK, China, Japan, South Korea, India, Malaysia, Singapore, Australia, New Zealand, GCC, South Africa, Israel |
| Key Companies Profiled | ABB Ltd.; Control4 Corporation; Crestron Electronics Inc.; Honeywell International Inc.; Ingersoll Rand Plc.; Johnson Controls; Legrand SA; Leviton Manufacturing Company Inc.; Lutron Electronics Co. Ltd.; Schneider Electric; Siemens AG |
| Report Customization & Pricing | Available upon Request |
The global smart home automation market is expected to secure USD 72 Billion in 2022
The smart home automation market is projected to display a CAGR of 8.84% from 2022 to 2032
By 2032, the smart home automation market is poised to reach a valuation of USD 168 Billion
Based on application, smart home automation for entertainment is expected to experience fastest growth, at a CAGR of 7.8%
Wireless smart home technology is expected to be the key revenue engine, accumulating 44% market share in 2022
According to Future Market Insights, the smart home automation market in North America is slated to grow at an 8% CAGR
Demand for smart home automation in Europe is forecast to flourish at a 7.7% CAGR until 2032
The Asia Pacific smart home automation market is expected to rise at a 7.5% CAGR from 2022 to 2032
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