Smart Home Automation Market Size By Component (Hardware, Software and Services), By Connection (Wired, Wireless, Hybrid), Application (Security, Lighting, Entertainment, HVAC & Energy Management, Smart Kitchen & Others), Distribution Channel (Online and Offline), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2032

Market Perspective

The global Smart Home Automation Market size was worth around USD 61.33 billion in 2022 and is predicted to grow around USD 401.87 billion by 2032, with a compound annual growth rate of roughly 20.6% between 2023 and 2032.

Smart home automation refers to the electronic and automatic management of activities, functions, and equipment in a home through Bluetooth, Wi-Fi, ZigBee, and others. It simply controls the appliances and features in the house online to improve convenience and security, while potentially saving money on utility costs.

Smart Home automation is a combination of hardware, software, and services that connects devices over the Internet equipped with sensors and Wi-Fi connectivity. Home automation improves convenience and reduces energy costs for cooling, heating, and electricity. It is equipped with the Internet of Things (IoT), gadgets like security systems and cameras, increased safety, comfort, monitoring, remote access, and a few others. This enables you to lock/unlock the door, turn on the lights, or even lower the heat.

The gadgets can also be controlled remotely through voice assistants like Alexa, Siri, Google Assistant, and others. Many of these Internet of Things (IoT) gadgets feature sensors that track changes in temperature, motion, and light. Although, the rising trend of smart homes is backed by increased disposable income boosting the market growth. For instance, in 2015, the Indian government launched smart cities mission to have completed 67% completion among cities by 2022.

Additionally, government limits on energy use and petrol emissions, as well as widespread IoT and remote connectivity use, are all anticipated to create growth prospects during the forecast period. During the projection period, the expansion of the smart home automation market would be driven by expanding technology breakthroughs and the creation of smart cities.

Key Insights

• Based on the component, the Hardware segment held the largest market share
• Based on connection, the wireless segment dominated the market
• Based on application, the security segment is expected to register the largest share
• Based on distribution channel, the online segment is expected to dominate over the forecast period
• On the basis of region, North America accounted largest market share

Increasing Customer Demand for Advanced Specifications Continues to be a Vital Trend

The rising demand among customers is aiding the market growth due to associated features like interactive experiences and remote operations provided by smart home automation. Additionally, the growing popularity of smart assistants is anticipated to fuel market expansion.

For instance, Apple, Inc. introduced its 2^nd generation HomePod in January 2023, which includes capabilities and sensors to allow home automation. Moreover, the use of smart home automation has surged due to growing safety and security concerns. Smart home automation is gaining traction as a result of growing energy bills, as well as increased consumer awareness of energy efficiency.

Rising Government Support to Increase the Sales of HVAC Systems is Augmenting the Market Growth

The use of HVAC systems is anticipated to increase with the introduction of new government requirements on efficiency. This has made it possible for the most cutting-edge heating and cooling systems in buildings to utilize smart HVAC control systems. Thus, in order to adjust energy efficiency under government guidelines, the HVAC equipment currently installed would need to be either replaced or adapted. This would increase the need for HVAC retrofitting, positively affecting the market's growth as a whole.

Additionally, OEMs are anticipating their offerings with more competitive and affordable prices as a result of falling IoT sensor prices, which could have an indirect effect on the market for HVAC equipment. Green HVAC systems are being created to reduce expenses and boost energy effectiveness.

Recent Development

March 2023- Johnson Controls launched a screen-free new IQ Pro Hybrid Security Panel supporting PowerG sensor technology and reliability to build for intrusion protection to create a personalized solution for customers.

June 2022- Tata Power launched a new AI-Powered smart home automation solution, PIR (Passive Infrared) Motion Sensor for the conservation of energy and reduces electricity bills for customers.

Segmentation Analysis

By component, the market is categorized into hardware, software, and services. The hardware held the largest market share owing to the rising need for home automation gear, including security, smoke detectors, lighting & access control, and others accredited for market development. Companies offer consumers several benefits, such as portability, reduced size, battery-powered wireless operation, and wireless connectivity, among others, all of which increase the user's comfort and convenience. For instance, in November 2022, Signify N.V. introduced two portable smart lights in India. The first smart lights were sensor-equipped and supported home automation applications.

On the basis of connection, the market is divided into wired, wireless, & hybrid. The wireless segment is expected to dominate the market owing to rising demand for wireless networks, increased use of mobile devices, and expanding use of the Internet of Things. Additionally, new wireless technologies including security and access controls, entertainment controls, and HVAC controllers are anticipated to promote market expansion.

By application, the market is categorized into security, lighting, entertainment, HVAC & energy management, smart kitchen & others. The security held largest market share owing to the increasing demand for security automation systems to protect luxury items from getting theft. Companies offer automation systems with enhanced security features like passcode entry, biometric verification, motion detection, and others. For instance, Ring LLC, a division of Amazon.com, Inc., includes security and access solutions in its portfolio for use in residential buildings.

Based on the distribution channel, the market is divided into online and offline. The online segment is expected to dominate the market owing to the e-commerce industry expanding quickly. Customers are more likely to order online, and businesses that don't use e-commerce suffer financial losses. With the help of online stores like eBay and Amazon, anyone can easily set up a straightforward online shop and start selling goods.

Additionally, by eliminating the requirement for pricey retail locations and customer-facing personnel, online sales can free up funds for improved marketing and user experience on the e-commerce site. For instance, the COVID-19 limits caused e-commerce to grow in demand and reach $26.7 trillion in 2019, according to UNCTAD research.

Regional Landscape

North America is the Dominating Region Owing to the Rising Automation Systems

North America region is the dominating region owing to the rising popularity of smart home devices and automation systems in the United States. With the existence of venerable firms, the entry of fresh competitors, and the high penetration of connection technologies in the region. With the expected addition of smart home technology shortly in almost 30 million US households. The most popular products that consumers are looking to purchase for their homes are connected cameras, followed by video doorbells, connected lightbulbs, smart locks, and smart speakers.

To meet the country's energy and environmental challenges and lower costs for building owners and tenants, it is necessary to reduce energy consumption in buildings, which accounts for roughly 76% of the electricity used, according to the US Department of Energy. This results in a significant amount of associated greenhouse gas (GHG) emissions.

Asia Pacific is Expected to Growth at the Fastest Rate Owing to the Rising Luxurious Lifestyles

Asia Pacific region is expected to grow at the fastest rate owing to growing investments in infrastructure to lift the standard of living and growing demand for HVAC & energy management in the region. Due to macroeconomic factors, there has been a healthy increase in disposable income, which is responsible for regional growth.

The market expansion in the region is being driven by cutting-edge technology like voice-controlled smart home gadgets and increased internet penetration that makes linked house automation possible. Additionally, major manufacturing centers for home automation sensors and IoT devices are found in Asian nations like China, which contributes to the market's expansion.

Competitive Landscape

• ABB
• com, Inc.
• Crestron Electronics, Inc.
• FIBAR GROUP S.A.
• General Electric Company
• GM Modular Pvt. Ltd.
• Google LLC
• Havells Group
• Honeywell International, Inc.
• Johnson Controls
• Legrand
• Leviton Manufacturing Co., Inc.
• Lutron Electronics Co., Inc
• Panasonic Life Solutions India Private Limited
• Schneider Electric
• Siemens AG
• Snap One, LLC
• Tata Power
• Wipro

The global smart home automation market is segmented as:

By Component

• Hardware
• Software
• Services

By Connection

• Wired
• Wireless
• Hybrid

By Application

• Security
• Lighting
• Entertainment
• HVAC & Energy Management
• Smart Kitchen
• Others

By Distribution Channel

• Online
• Offline

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America