Smart Home Market Size, Share, and COVID-19 Impact Analysis, By Product (Lighting Control, Security and Access Control, Entertainment, Smart Appliances, and Other), By Software & Services (Behavioral, Proactive), By Sales Channel (Direct, Indirect), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS  

The global Smart Home Market was valued at USD 136.14 billion in 2022 and is projected to reach USD 790.19 billion by 2030, growing at a CAGR of 25.06% from 2023 to 2030. The smart home, also known as home automation, employs internet-connected devices to manage and monitor a variety of home equipment and systems. It is a cutting-edge technology that makes the functioning of a variety of home appliances more convenient and energy efficient. This concept entails employing wireless technology to control all of the electronic equipment in the home. End-users can operate all electronic appliances using a smart home app on their mobile phones or other networked devices, providing comfort, energy efficiency, security, and convenience.

The increasing importance of home monitoring in remote locations, as well as growing concern about security, safety, and convenience among the general population, as well as the growing need for energy-saving and the growing number of internet users and growing adoption of smart devices, have all contributed to increased demand for smart home systems. 

COVID-19 ANALYSIS  

COVID-19 has had a negative impact on major markets like as the United States and China, with supply chain disruption in China resulting in a drop in demand for smart home systems. China's market growth is being hampered by a drop in the number of new construction projects and the temporary shutdown of manufacturing facilities. The market in the United States is predicted to expand faster than other countries in the Americas; however, low adoption of smart home systems in the medium term and the current trade war with China are expected to hamper the market's growth.

LATEST TREND

Increasing Adoption of Smart Home Devices In Developing Economies

The Internet of Things (IoT) is at the heart of smart home technology, with the major focus on Internet connectivity to ordinary objects. While the Internet was originally designed to be used largely by computers, people may now use it to connect their phones, automobiles, medical gadgets, and connected homes. The components of a smart house are rather simple. To begin, the customer will require a router, which will serve as the hub through which all other connected devices, as well as more remote devices such as a phone or PC, can communicate with one another. Smart home automation gives consumers access to high-tech functionality and luxury that was previously unavailable. Consumer home automation will become more accessible as technology advances, making living easier and more fun. Temperature sensors, smart thermostats, wall switches, smart plugs, water sensors, door & window sensors, motion sensors, and other integrated devices are examples of smart home gadgets. Consumer demand for smart homes is increasing, opening up new business prospects. This is propelling the market growth during the forecast period. 

DRIVING FACTORS

Increasing Adoption of Smart Products Boost Market Growth

The market is expected to rise due to a geriatric population, improved M-2-M communication networks, new product development, and advancements in the Internet of Things (IoT). Technology is responsible for offering effective energy-saving solutions, which are backed by a variety of government programs and beneficial changes in developed regions such as Europe and North America.

Rising Demand for Smart And Connected Homes

The real estate sector is expected to develop due to rising demand for smart and connected homes, as well as home automation systems, which are an important component of smart homes. The increased need for push button control, changing demographic preferences, energy conservation, and the need to protect the worldwide environment from harmful effluents such as greenhouse gases and toxic wastes are projected to drive market expansion.

RESTRAINTS 

High Security Risks Are Impeding Market Expansion

The growing cyberattack in high-end connected technology is a big barrier to commercial expansion. All of the linked endpoints pose a security risk to smart home technology. Because intelligent technology is linked to every system and equipment in the home, hackers can acquire access to confidential and personal data if it is not adequately guarded.   

SEGMENTATION

The global Smart Home Market is segmented by Product, Software & Services, Sales Channel, and Region. Based on the Product, the market is categorized into Lighting Control, Security and Access Control, Entertainment, Smart Appliances, and Other. Based on Software & Services, the market is categorized into Behavioral, Proactive. Based on Sales Channel, the market is categorized into Direct, Indirect. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.    

REGIONAL INSIGHTS

The Global Smart Homes Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.     

North America is expected to have the biggest market share. This growth is fueled by the existence of significant companies in the industry, such as Crestron, Honeywell International Ltd., Amx, and Control4 Corporation. Furthermore, factors such as the growing acceptance of fundamental communication technologies such as Wi-Fi, Zigbee, Bluetooth, NFC, and the impending 5G network are propelling the industry forward. Strategic mergers and acquisitions are being pursued by key corporations in this region in order to develop their business divisions globally. 

In Europe, small business expansion and greater investment by major enterprises in countries like Germany, France, the United Kingdom, and others are driving market growth. This rise is being fueled by the rising demand for smart security and monitoring systems in this region. These elements will contribute to the market's growth, allowing it to expand globally.  

Asia Pacific is expected to increase at the fastest rate during the projection period. This region is expected to increase due to rising demand for automation solutions in residential applications. Major players in the region are concentrating their efforts on collaborating with other well-known companies to develop and deploy breakthrough smart home solutions. For instance, Vivint Smart Home, Inc. and Mosaic Acquisition Corp. announced a merger in January 2020. The merger's goal was to make the firm a publicly traded company while also expanding its smart home platform products. According to a report released by India's Press Information Bureau in June 2021, the country has set goals, including expanding to 4,000 cities in two years, transforming the smart city mission (SCM) into a mass-expansion movement, and aligning the national program with smart cities to maximize benefits. 

KEY INDUSTRY PLAYERS

The major players in the smart homes market are Emerson Electric Co., Samsung Group, Honeywell International, General Electric, and Schneider Electric SE, and others. To give advanced products and services to their clients, the corporations are investing in R&D. For instance, Schneider Electric is prepared to introduce the new 'Matter' connectivity standard across its connected home and building portfolio in May 2021. Matter, the new open-source unified connection protocol that replaces CHIP (Connected Home over IP), will work with a wide range of smart home and building solutions, including lighting, security systems, speakers, locks, routers, and HVAC controls. Matter is built on IP, the internet's core networking technology, and is backed by important ecosystem players. Native cloud connectivity, better cyber security, and device compatibility with Matter-branded devices will benefit consumers, manufacturers, product designers, and developers.

KEY INDUSTRY DEVELOPMENTS:

In August 2021, SmartRent.com, LLC, a smart home and smart building automation service, announced a merger with Fifth Wall Acquisition Corp. The transaction was made in order for the company to grow and go public.

In November 2018, Legrand purchased Netatmo, a smart home firm based in France. Legrand will incorporate Netatmo's devices into its portfolio, allowing the company to expand its presence in this market and expedite the development of Eliot, its linked solutions programme.

LIST OF KEY COMPANIES PROFILED:

• Emerson Electric Co.
• Samsung Group
• Honeywell International
• General Electric
• Schneider Electric SE
• SmartRent Technologies, Inc
• Legrand
• Vivint, Inc.
• ABB Ltd.
• Centrica plc
• Snap One, LLC
• Johnson Controls, Inc.
• Sony Corporation

SEGMENTATION

By Product

• Lighting Control
• Security and Access Control
• Entertainment
• Smart Appliances
• Other

By Software & Services

• Behavioral
• Proactive

By Sales Channel

• Direct
• Indirect

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa