Smart Home Market Size, Share & Trends Analysis Report By Application (Security & Surveillance, Lighting, Entertainment, Energy Management, HVAC, Smart Kitchen, Home Fitness & Wellness)Technology: Wired and Wireless, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

The global Smart Home market was valued at USD 62.70 billion in 2021 and it is expected to hit around USD 765.9 billion by 2030 with a CAGR of 28.7% during the forecast period 2022 to 2030.

Key Takeaways:

• By Application, the U.S. Smart Home market was valued at USD 19.11 Billion in 2021 and expected to witness growth at a CAGR of 22.4% from 2022 to 2030.
• The security and surveillance application segment dominated the global market and accounted for the highest revenue share of around 31.9%. This is owing to the rising demand for smart home devices such as burglar alarms, window sensor alarms, and security cameras, which inform users of a potential threat or security breach
• The energy management segment is anticipated to witness substantial growth due to increasing awareness regarding energy-efficient devices, coupled with the support of regulatory bodies for developing a smart grid and installing smart electricity, water, and gas meters
• During the pandemic, many customers adopted smart home gadgets, out of health safety concerns and to curb the spread of the virus. Consumers used smart devices such as robotic cleaners to keep the home tidy, video doorbells for reducing hand contact, and innovative security cameras for safety purposes
• Increased penetration of smart digital assistants, such as Alexa and Google Assistant, among households for easy communication and entertainment has led to significant market growth

The rising focus on energy conservation and reduced carbon emissions are anticipated to drive market growth during the forecast period. The improved regulatory initiatives by governments for deploying smart home devices to save energy are encouraging people to adopt these products, thereby significantly impacting the market growth.

For instance, in June 2020, the government of the U.K. released new plans to deploy smart meters in homes across the region, guaranteeing that consumers may continue to save money on their energy bills and carbon emissions once the coronavirus pandemic-induced lockdown is removed. The growing elderly population is expected to significantly impact the market growth for smart homes due to an increasing demand for smart devices to monitor and control their health and set reminders for their medicines and appointments with physicians.

Increasing awareness regarding smart grids, higher personal income in developing economies, power line communication assistance, and the rise of the consumer electronics industry are factors likely to impact market growth positively. In developed and developing countries, smart home devices pose significant potential in the overall smart home industry.

Increased adoption of IoT has led to a faster deployment of smart devices, such as control lights, thermostats, heating equipment, door locks, and others, to streamline the control and management of basic household chores. Furthermore, the growing need for a luxurious lifestyle in developing nations owing to increased disposable income and preference among consumers for energy-efficient devices is propelling the market growth.

Report Scope of the Smart Home Market

Home Security Solutions Gain Popularity in Smart Home Market

Security innovations for smart homes is a highly talked-about concept in the smart home market. Smart locks and video doorbells are becoming increasingly mainstream in the global market landscape. An alarming rate of thefts and vulnerable safety of individuals has provoked end users to invest in future-proof home security solutions. Since home security is one of the top priorities that individuals desire to have in their homes, companies in the smart home market are capitalizing on this widespread trend. As such, there is a growing demand for solutions that offer real-time updates and notifications, especially when users are away from home.

Remote monitoring of door locks and security cameras has become need of the hour in the market of home security solutions. Companies are extending innovative services in which technicians are capable of changing traditional security elements such as deadbolt locks and doorbells into smarter versions of themselves.

Demand for Reliable Smart Air Purifiers amid COVID-19 Outbreak

Following the outbreak of COVID-19 pandemic, many individuals are flocking to medical stores to purchase disinfectant sprays, masks, and other personal protective equipment (PPE) to fight off the deadly infection. This trend has also triggered the demand for smart air purifiers. However, individuals are pondering whether smart air purifiers are really that effect to neutralize coronavirus particles. Hence, companies are innovating in smart air filters and increasing their R&D activities to substantiate the size of coronavirus particles.

It has been found that coronavirus particles can be neutralized through smart air purifiers, since these particles are relatively much larger than most of the smallest particles known till now. Hence, companies in the smart home market are increasing their focus in HEPA (High Efficiency Particulate Air) filters that are capable of decontaminating coronavirus particles. Even many airline companies use smart air purifiers with HEPA filters to neutralize harmful particulate matter.

Voice-enabled Devices Under Scrutiny for Data Security Concerns

Amazon and Google are aggressively innovating in their respective voice-enabled devices. However, there is increased awareness about data security concerns as to how these tech giants collect and share their data. Hence, companies in the smart home market are making improvements in devices that can automatically delete recordings of users on a routine basis, thus limiting a user’s access for prior voice commands.

The concept of fun-to-have gadgets for checking the weather, playing music and answering trivia questions is gaining prominence worldwide. In order to enhance user’s experience, companies are increasing efforts to eliminate the need for wake words such as OK Google or Alexa in devices. Such innovative devices are bolstering growth for the smart home market, which is predicted to reach a promising valuation by the end of the forecast period.

Light & Heat Control Preferred Feature in Smart Glass Installations

Apart from innovations in HVAC control systems, smart appliances, and smart speakers, companies in the smart home market are innovating in smart glasses. The surging demand for privacy, energy-efficiency, light & heat control, design innovation, and automated shading is a key reason for boosting the demand for smart glass. Smart glass, also known as electronically switchable glass, opens an array of possibilities for interior designers and architects to control UV radiation, light, and glare.

The use of smart glass is becoming considerably popular in premium smart homes of individuals from high-income groups. Auto thermal heating and cooling as per external weather changes is a preferred feature by most users. Hence, rise in smart glass installations in sunroofs for home balconies and bedroom windows is propelling the growth of the global market for smart homes.

Application Insights

The smart kitchen segment is expected to advance with the highest CAGR of 30.5% in the forecast period. The rapid deployment of smart kitchen appliances, such as automatic composters, smart water purifiers, smart air fryers, juice extractors, and others, is impacting the growth of the market positively.

The intelligent features remember and recollect the users’ favorite cooking mode and have sensors that detect and send an alert if something goes wrong. Smart refrigerators have inbuilt cameras, which allow users to see what is inside the refrigerator from anywhere and alert the users about the expiry date of food.

The security & surveillance segment registered the highest revenue share of around 31.0% in 2021. The increasing demand for digitally connected devices in the market leads to a subsequent rise in demand for security systems in the smart homes market. Devices such as video assist doorbells and smart security cameras provide advanced security solutions. The integration of IoT has made it easy to set up smart home security, in which users have the ability to control lights, thermostats, heating equipment, door locks, and lawn movers through smartphone applications.

Smart security cameras make it simple to observe your home from anywhere, and they are well equipped and feature customizable solutions. Smart security cameras are also available with do-it-yourself kits. The user can set up security alerts as per his/her requirement or opt to pay the subscription fee for 24/7 surveillance of the smart home by professionals, as well as contact the fire department and police department in case of any emergency.

Regional Insights

Asia Pacific is expected to advance at the highest CAGR of over 32.0% from 2022 to 2030. The ever-increasing demand from the residential sector is expected to propel growth in this region. Regional companies are focusing on innovations and advancements to meet the requirements of potential customers. For instance, in January 2020, Vivint Smart Home, Inc. merged with Mosaic Acquisition Corp. Both companies aim to expand their market presence and thereby strengthen the company product offerings.

North America registered the highest revenue share of over 41.0% in 2021 and is expected to substantially contribute to the smart home industry from 2022 to 2030. This is owing to the increasing presence of an elderly demographic in the region. Of the total population, the segment aged 65 years and above is anticipated to grow by nearly 88 million by 2050. This is expected to increase the demand for healthcare and medical care services.

The demand for smart home devices that support individuals in maintaining, controlling, and managing health problems is anticipated to increase in the coming years. An automatic healthcare remainder system supports the user by reminding doctor’s appointments and medicine. Additionally, IoT healthcare solutions provide higher data accuracy, resulting in a preference for smart devices in diagnosing health conditions.

Some of the prominent players in the Smart Home Market include:

• Honeywell International Inc.
• LG Electronics, Inc.
• Lutron Electronics Co., Inc.
• Google Nest.
• NETGEAR Inc.
• Ring LLC
• Robert Bosch GmbH
• Samsung Electronics Co., Ltd.
• Schneider Electric SE
• Philips Lighting B.V.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Smart Home market

• Technology
• Wired
• Wireless
• Application
• Lighting Control
• Security and Access Control
• HVAC Control
• Entertainment
• Smart Appliance
• Smart Speakers
• Smart Kitchen
• Others

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the global Smart Home industry analysis from 2022 to 2030 to identify the prevailing Smart Home industry opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the global Smart Home industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global Smart Home industry trends, key players, market segments, application areas, and market growth strategies.