Global Smart Home Market Size by Component (Lighting Control, Security and Access Control, Access Control, HVAC Control, Entertainment, and Other Controls, Smart Speaker, Home Healthcare, Smart Kitchen, Home Appliances, and Smart Furniture), Software & Services (Behavioral and Proactive), Sales Channel (Direct and Indirect), Regions, Segmentation and Projection till 2028
CAGR: 10.0%Current Market Size: USD 82.3 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2021-2028Base Year: 2020
Global Smart Home Market- Market Overview
The global Smart Home market is expected to grow from USD 82.3 Billion in 2020 to USD 173.2 Billion by 2028, at a CAGR of 10.0% during the Projection period 2021-2028. This growth of the smart home market is significantly driven by significant internet penetration around the globe along with the rising adoption of smart devices and proliferation of the Internet of things.
The smart home is a residence that involves home automation and uses internet-connected devices to allow remote management and monitoring of appliances and systems, such as heating and lighting. It provides homeowners with security, convenience, comfort, and energy efficiency by enabling them to control smart devices. It comprises systems and devices which are part of the internet of things (IoT) operating together and automating actions based on the homeowners' preferences. Smart home mainly comprises smart lighting systems, smart speakers, smart thermostats, home security cameras, multi-room audio systems, smart smoke and carbon monoxide detectors, and smart irrigation.
Smart homer systems enable users to manage all of the home devices from one place, maximize home security, remote control of home functions, improve appliance functionality, and increase energy efficiency.
Request Sample:- Global Smart Home Market
Market Dynamics
Drivers:
- Growing internet penetration
The Internet has become one of the fast-growing and most transformative technologies with over 4.5 billion people are using the internet at the start of 2020. However, according to the Cisco Annual Internet Report, nearly two-thirds of the global population is expected to have Internet access by 2023 with fixed broadband speeds that will more than double by 2023. This growth in internet users significantly drives the growth of the smart home market. For instance, according to Smart Products: Building the Modern Home, the latest whitepaper by Parks Associates, 23% of U.S. broadband households own three or more smart home devices. Also, the growing number of connected devices tapping into high-speed connections for delivering safety, convenience, security, and energy-saving use cases.
- Need for energy-efficient home
There is a significant need for energy-efficient homes which reduce greenhouse gas emissions, wasted energy usage, and demand for non-renewable energy resources by offering a cleaner and healthier living conditions. In addition to this, such homes offer financial savings. The need for energy-efficient homes creates demand for smart home devices, fueling the growth of the market. For instance, the smart lighting system is one of the different energy-saving strategies for smart homes. In such lighting systems, energy saving is achieved by the usage of long-lasting LED light bulbs that can be customized and controlled remotely through smart or voice-controlled technology.
Restraints:
- Higher initial cost pertaining to the smart home systems
A wide range of costs is associated with home automation or the implementation of smart home technologies. For instance, according to Fixr.com, about $20,000 investment is needed for fully automating every room in the home, including lights, locks, irrigation system, appliances, thermostat, and smart speakers. Such costs are not affordable to a number of homeowners; hence, the significant initial investment may hamper the growth of the market to some extent.
Opportunities:
- New product innovations and investments
The companies operating in the smart home market are rapidly introducing and investing in new product designs. For instance, in October 2020, the Nest smart-home division of Google launched Nest Thermostat, a new smart thermostat with a simpler design, lower price. Further, T-Mobile planned to launch and invest in a 5G-based home network by 2024. This development is aimed at extending coverage to previously underserved rural areas in the U.S. Such innovations and investments are encouraging smart home market-creating lucrative growth opportunities.
Challenges:
- Security and privacy issues pertaining to the smart home systems
With the usage of smart sensor technology, electronic devices or appliances are being designed to connect to the internet. Similarly, in smart home systems, a number of home appliances and devices among others are connected to the Internet, with a lot of information is available on it. However, applying security in such Internet of Things environments has been identified as among the top hurdles for realizing the vision of energy-efficient and smart homes. Hence, security and privacy issues pertaining to smart home systems may create challenges for the market growth.
Segmentation Analysis
The global smart home market has been segmented based on components, software & services, sales channel, and regions.
By Component
- The component segment includes lighting control, security and access control, access control, HVAC control, entertainment, and other controls, smart speaker, home healthcare, smart kitchen, home appliances, and smart furniture. The lighting control segment led the Smart Home market with a market share of around 36.2% in 2020. The growth of this segment is mainly attributed to the rising demand for energy-efficient lighting systems. Lighting control plays an essential role in achieving sustainability and energy savings; thus, fueling the growth of the segment. However, the smart kitchen segment is expected to witness the highest growth rate during the Projection period due to considerable growth in kitchen renovation activities coupled with the increasing preference towards modular kitchens among developing countries.
By Software & Services
- The software & services segment includes behavioral and proactive. The behavioral segment led the smart home market with a market share of around 58.9% in 2020. The need for easy-to-use solutions with real-time and enhanced services primarily drives growth in demand for behavioral solutions in the smart home market. For instance, such software and services learn the behavior of users and automatically smarter control of appliances. However, the proactive segment is expected to witness the highest growth rate during the Projection period.
By Sales Channel
- The sales channel segment includes direct and indirect. The direct segment held the largest market share of 64.1% in 2020. The growth of this segment is mainly driven by the convenience and service offered by direct sales, including personal explanation and demonstration of products. However, the indirect segment is expected to grow at the highest growth rate during the Projection period owing to the upsurge in sales of smart home offerings and products through the online medium.
By Regional Analysis
The regions analyzed for the smart home market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The North American region dominated the Smart Home market and held the 35.2% share of the market revenue in 2020.
- The growth of the North America Smart Home market is mainly driven by government initiatives to help energy-efficient buildings that provide benefits such as reduced lifetime costs, increased energy savings, and reduced greenhouse gas emissions. In addition to this, residents in this region have been using smart thermostats, HVAC controls, smart meters, and lighting controls for a long time, fueling North America’s smart home market size.
- The Asia-Pacific region is likely to register significant growth during the Projection period due to a number of factors including increasing disposable income, growing geriatric population, and an upsurge in focus toward smart building infrastructure. In addition to this, the region is home to several key market players including Samsung Electronics, Panasonic, LG Electronics, Haier Smart Home, and Sony which focuses on technological innovations, creating lucrative growth opportunities for the market in the region.
Key Industry Players Analysis
Key market players are focusing on innovations
The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global Smart Home industry.
For instance, in August 2020, Samsung SmartThings, one of the leaders in smart home automation partnered with Google, to integrate the company’s portfolio of Nest products into SmartThings, one of the largest IoT ecosystems.
In July 2020, ABB, one of the leading market players launched a package of new upgrades for its ABB-free@home system. This launch extends smart home capabilities to cater to increasing demand for Internet of Things (IoT) technology within smart homes.
In July 2019, Bosch Building Technologies announced its plans to acquire Gesellschaft für Regelungstechnik und Energieeinsparung mbH headquartered in Verl, Germany. The acquisition is expected to strengthen the building automation solutions portfolio of Bosch Building Technologies.
- ADT
- ABB
- Robert Bosch
- Sony
- Samsung Electronics
- Axis Communications
- Ooma
- Delta Controls
- Control4
- Comcast
- Smarthome
- Crestron Electronics
- SimpliSafe
- Armorax
- Canary
- LG Electronics
- Lutron
- Legrand
Latest Development
- September 2020- Blue by ADT, the provider of a wide range of devices with smart home compatibility introduced a DIY smart home security brand from ADT. This launch has expanded its product lineup by offering fully customizable DIY smart home security solutions.
- September 2020- LG Electronics Inc., one of the leading market players introduced a smart home built in South Korea equipped with its latest technologies and products as the demonstration of future home living.
Report Metrics
|
Report Attribute |
Details |
|
Forecast period |
2021-2028 |
|
Base year considered |
2020 |
|
CAGR (%) |
10.0% |
|
Market Size |
82.3 Billion in 2020 |
|
Forecast unit |
Value (USD) |
|
Segments covered |
Component, Software & Services, Sales Channel, and Regions |
|
Report Scope |
Revenue forecast, competitive landscape, company ranking, growth factors, and trends |
|
Companies covered |
ADT, ABB, Robert Bosch, Sony , Samsung Electronics, Axis Communications, Ooma ,Delta Controls, Control4, Comcast, Smarthome, Crestron Electronics, SimpliSafe, Armorax , Canary, LG Electronics, Lutron, and Legrand among others. |
|
By Component |
|
|
By Software & Services |
|
|
By Sales Channel |
|
|
Regional scope |
|
Scope of the Report
Global Smart Home Market by Component:
- Lighting Control
- Security and Access Control
- Access Control
- HVAC Control
- Entertainment and Other Controls
- Smart Speaker
- Home Healthcare
- Smart Kitchen
- Home Appliances
- Smart Furniture
Global Smart Home Market by Software & Services:
- Behavioral
- Proactive
Global Smart Home Market by Sales Channel:
- Direct
- Indirect
Global Smart Home Market by Region:
- North America
- USA
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Russia
- Asia-Pacific
- Japan
- China
- India
- Korea
- Southeast Asia
- South America
- Brazil
- Peru
- Middle East and Africa
- UAE
- South Africa
- Saudi Arabia
Frequently Asked Questions
What is the market Size of the Smart Home Market in 2020?
The market value of the Smart Home Market in 2020 is $82.3 Billion.
Which is the most influencing segment growing in the Smart Home report?
The lighting Control segment is the most influencing segment in the Smart Home market.
Which region has the highest market share in Smart Home Market?
North America held the major share in the market over the Projection period 2021- 2028.
Which are the Top players active in the Smart Home market?
The leading market players active in the global smart home market are ADT, ABB, Robert Bosch, Sony, Samsung Electronics, Axis Communications, Ooma, Delta Controls, Control4, Comcast, Smarthome, Crestron Electronics, SimpliSafe, Armorax, Canary, LG Electronics, Lutron, and Legrand among others.
What is the segment considered in the global Smart Home market?
Component, Software & Services, Sales Channel, and regions are the four segments of the report.
Does this report include the impact of COVID-19 on the Smart Home market?
Yes, the market includes qualitative and quantitative insights for COVID-19 impact on the Smart Home market.
What is the study period of this market?
The Smart Home market is studied from 2020 - 2028.
Political- The growth of the North America Smart Home market is mainly driven by government initiatives to help energy-efficient buildings that provide benefits such as reduced lifetime costs, increased energy savings, and reduced greenhouse gas emissions. In addition to this, residents in this region have been using smart thermostats, HVAC controls, smart meters, and lighting controls for a long time, fueling North America’s smart home market size.
Economic- A wide range of costs is associated with home automation or the implementation of smart home technologies. For instance, according to Fixr.com, about $20,000 investment is needed for fully automating every room in the home, including lights, locks, irrigation system, appliances, thermostat, and smart speakers. Such costs are not affordable to a number of homeowners; hence, the significant initial investment may hamper the growth of the market to some extent.
Social- The Asia-Pacific region is likely to register significant growth during the Projection period due to a number of factors including increasing disposable income, growing geriatric population, and an upsurge in focus toward smart building infrastructure. In addition to this, the region is home to several key market players including Samsung Electronics, Panasonic, LG Electronics, Haier Smart Home, and Sony which focuses on technological innovations, creating lucrative growth opportunities for the market in the region.
Technological- LG Electronics Inc., one of the leading market players introduced a smart home built in South Korea equipped with its latest technologies and products as the demonstration of future home living. ABB, one of the leading market players launched a package of new upgrades for its ABB-free@home system. This launch extends smart home capabilities to cater to increasing demand for Internet of Things (IoT) technology within smart homes.
Environmental- Applying security in such Internet of Things environments has been identified as among the top hurdles for realizing the vision of energy-efficient and smart homes. Hence, security and privacy issues pertaining to smart home systems may create challenges for the market growth.
Legal- Bosch Building Technologies announced its plans to acquire Gesellschaft für Regelungstechnik und Energieeinsparung mbH headquartered in Verl, Germany. The acquisition is expected to strengthen the building automation solutions portfolio of Bosch Building Technologies.
- Introduction
- Objectives of the Study
- Market Definition
- Research Scope
- Research Methodology and Assumptions
- Executive Summary
- Premium Insights
- Porter’s Five Forces Analysis
- Value Chain Analysis
- Top Investment Pockets
- Market Attractiveness Analysis By Component
- Market Attractiveness Analysis By Software & Services
- Market Attractiveness Analysis By Sales Channel
- Industry Trends
- Market Dynamics
- Market Evaluation
- Drivers
- Growing internet penetration
- Need for energy efficient home
- Restrains
- Higher initial cost pertaining to the smart home systems
- Opportunities
- New product innovations and investments
- Challenges
- Security and privacy issues pertaining to the smart home systems
- Global Smart Home Market Analysis and Projection, By Component
- Segment Overview
- Lighting Control
- Security and Access Control
- Access Control
- HVAC Control
- Entertainment and Other Controls
- Smart Speaker
- Home Healthcare
- Smart Kitchen
- Home Appliances
- Smart Furniture
- Global Smart Home Market Analysis and Projection, By Software & Services
- Segment Overview
- Behavioral
- Proactive
- Global Smart Home Market Analysis and Projection, By Sales Channel
- Segment Overview
- Direct
- Global Smart Home Market Analysis and Projection, By Regional Analysis
- Segment Overview
- North America
- USA
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Asia-Pacific
- Japan
- China
- India
- South America
- Brazil
- Middle East and Africa
- UAE
- South Africa
- Global Smart Home Market-Competitive Landscape
- Overview
- Market Share of Key Players in the Smart Home Market
- Global Company Market Share
- North America Company Market Share
- Europe Company Market Share
- APAC Company Market Share
- Competitive Situations and Trends
- Component Launches and Developments
- Partnerships, Collaborations, and Agreements
- Mergers & Acquisitions
- Expansions
- Company Profiles
- ADT
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- ABB
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Robert Bosch
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Sony
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Samsung Electronics
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Axis Communications
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Ooma
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Delta Controls
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Control4
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Comcast
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Smarthome
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Crestron Electronics
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- SimpliSafe
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Armorax
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Canary
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- LG Electronics
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Lutron
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- Legrand
- Business Overview
- Company Snapshot
- Company Market Share Analysis
- Company Component Portfolio
- Recent Developments
- SWOT Analysis
- ADT
List of Table
- Global Smart Home Market, By Component, 2020–2028(USD Billion)
- Global Lighting Control Market, By Region, 2020–2028(USD Billion)
- Global Security and Access Control Market, By Region, 2020–2028(USD Billion)
- Global Access Controls Market, By Region, 2020–2028(USD Billion)
- Global HVAC Control Market, By Region, 2020–2028(USD Billion)
- Global Entertainment and Other Controls Market, By Region, 2020–2028(USD Billion)
- Global Smart Speaker Market, By Region, 2020–2028(USD Billion)
- Global Home Healthcare Market, By Region, 2020–2028(USD Billion)
- Global Smart Kitchen Market, By Region, 2020–2028(USD Billion)
- Global Home Appliances Market, By Region, 2020–2028(USD Billion)
- Global Smart FurnitureMarket, By Region, 2020–2028(USD Billion)
- Global Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Global Behavioral Smart Home Market, By Region, 2020–2028(USD Billion)
- Global Proactive Smart Home Market, By Region, 2020–2028(USD Billion)
- Global Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Global Direct Smart Home Market, By Region, 2020–2028(USD Billion)
- Global Indirect Smart Home Market, By Region, 2020–2028(USD Billion)
- Global Smart Home Market, By Region, 2020–2028(USD Billion)
- Global Smart Home Market, By North America, 2020–2028(USD Billion)
- North America Smart Home Market, By Component, 2020–2028(USD Billion)
- North America Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- North America Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- US Smart Home Market, By Component, 2020–2028(USD Billion)
- US Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- US Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Canada Smart Home Market, By Component, 2020–2028(USD Billion)
- Canada Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Canada Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Mexico Smart Home Market, By Component, 2020–2028(USD Billion)
- Mexico Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Mexico Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Europe Smart Home Market, By Component, 2020–2028(USD Billion)
- Europe Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Europe Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Germany Smart Home Market, By Component, 2020–2028(USD Billion)
- Germany Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Germany Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- France Smart Home Market, By Component, 2020–2028(USD Billion)
- France Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- France Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- UK Smart Home Market, By Component, 2020–2028(USD Billion)
- UK Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- UK Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Italy Smart Home Market, By Component, 2020–2028(USD Billion)
- Italy Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Italy Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Spain Smart Home Market, By Component, 2020–2028(USD Billion)
- Spain Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Spain Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Asia Pacific Smart Home Market, By Component, 2020–2028(USD Billion)
- Asia Pacific Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Asia Pacific Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Japan Smart Home Market, By Component, 2020–2028(USD Billion)
- Japan Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Japan Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- China Smart Home Market, By Component, 2020–2028(USD Billion)
- China Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- China Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- India Smart Home Market, By Component, 2020–2028(USD Billion)
- India Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- India Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- South America Smart Home Market, By Component, 2020–2028(USD Billion)
- South America Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- South America Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Brazil Smart Home Market, By Component, 2020–2028(USD Billion)
- Brazil Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Brazil Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- Middle East and Africa Smart Home Market, By Component, 2020–2028(USD Billion)
- Middle East and Africa Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- Middle East and Africa Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- UAE Smart Home Market, By Component, 2020–2028(USD Billion)
- UAE Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- UAE Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
- South Africa Smart Home Market, By Component, 2020–2028(USD Billion)
- South Africa Smart Home Market, By Software & Services, 2020–2028(USD Billion)
- South Africa Smart Home Market, By Sales Channel, 2020–2028(USD Billion)
List of Figures
- Global Smart Home Market Segmentation
- Smart Home Market: Research Methodology
- Market Size Estimation Methodology: Bottom-Up Approach
- Market Size Estimation Methodology: Top-Down Approach
- Data Triangulation
- Porter’s Five Forces Analysis
- Value Chain Analysis
- Global Smart Home Market Attractiveness Analysis By Component
- Global Smart Home Market Attractiveness Analysis By Software & Services
- Global Smart Home Market Attractiveness Analysis By Sales Channel
- Global Smart Home Market Attractiveness Analysis By Region
- Global Smart Home Market: Dynamics
- Global Smart Home Market Share By Component(2021 & 2028)
- Global Smart Home Market Share By Software & Services(2021 & 2028)
- Global Smart Home Market Share By Sales Channel(2021 & 2028)
- Global Smart Home Market Share by Regions (2021 & 2028)
- Global Smart Home Market Share by Company (2020)
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