“The smart home market is expected to grow at significant CAGR during the forecast period.”
The global smart home market size is expected to grow from USD 78.3 billion in 2020 to USD 135.3 billion by 2025, at a CAGR of 11.6% during the forecast period. The growth of the smart home industry is driven by various factors, such as the increasing number of internet users, and the growing adoption of smart devices, rising disposable income of people in developing economies.
Moreover, the rising importance of home monitoring in remote locations, increasing need for energy-saving and low carbon emission-oriented solutions, the rapid proliferation of smartphones and smart gadgets, expansion of smart home product portfolio by a large number of players, growing concern about safety, security, and convenience among the general population will drive growth.
“Entertainment and other control systems are likely to hold the largest share of the smart home market in 2020.”
Entertainment has become an important part of life as it provides relaxation and rejuvenation. A multi-room entertainment control system allows the user to centralize all connected devices and then listen to, watch, and control that equipment from every room in the house simultaneously or independently.
Major control systems used in smart homes are audio, volume, and multimedia room controls. The growth of the market for audio, volume, and multimedia room controls is driven by the convenience offered for managing as well as controlling the entertainment systems within a house.
Advancements in wireless communication technologies are a major factor in boosting the growth of the market for home theater system controls, thereby driving the overall smart home market for entertainment controls. The large market share of this segment can be attributed to the high penetration rate of products such as smart meters and smoke detectors. The increasing cost of electricity is a major concern that drives household consumers toward energy savings. Moreover, the rising popularity of smart plugs, smart hubs, and smart locks are fueling the adoption of control systems.
“Behavioral type software and services are expected to account for the largest market share in 2020.”
The increasing connectivity between machine-to-machine solutions and the Internet of Things is driving the growth of the smart home and energy management markets, which has, in turn, influenced the growth of the market for software and services for smart homes. The behavioral type software and services help analyze energy-related data and forward it to end-users. This category is restricted to transmitting and receiving data and does not perform intelligent actions like the proactive type. Behavioral type solutions provide direct feedback to end-users, thereby providing the basic information regarding the real-time energy data, along with the historical data reflecting energy usage. Therefore, behavioral type software and services are likely to hold the largest market share in 2020.
“North America and APAC considered major markets for smart homes.”
North America is likely to account for the largest share of the global smart home market in 2020 owing to the increasing demand for reliable home energy management systems and enhanced home security levels, as well as the growing popularity of smart devices such as tablets and smartphones. The smart home market in APAC is expected to grow at the highest rate during the forecast period. Factors such as strong economic growth, increased population, improved standard of living, and rapid urbanization leads to a sophisticated infrastructure and driving the growth of the smart home market in this region.
Breakdown of profiles of primary participants:
- By Company: Tier 1 = 10 %, Tier 2 = 30%, and Tier 3 = 60%
- By Designation: C-Level Executives = 50%, Directors = 25%, and Others = 25%
- By Region: North America = 60%, Europe = 20%, APAC = 10%, and RoW = 10%
Major players profiled in this report are as follows:
- Johnson Controls International (Ireland)
- United Technologies Corporation (US)
- Schneider Electric (France)
- Honeywell International, Inc. (US)
- Siemens AG (Germany)
- Amazon, Inc. (US)
- Apple Inc. (US)
- Google (US)
- ADT (US)
- Robert Bosch GmbH (Germany)
- ASSA ABLOY (Sweden)
- ABB (Switzerland)
- Legrand S.A. (France)
- Samsung Electronics Co., Ltd. (South Korea)
- Delta Control (US)
- Sony (Japan)
- Control4 Corp. (US)
- Vivint (US)
- Axis Communication AB (Sweden)
In this report, the smart home market has been segmented based on the product, software and services, and geography. The smart home market, by product, has been segmented into lighting control, security and access control, HVAC control, entertainment & other controls, smart speaker, home healthcare, smart kitchen, home appliances, and smart furniture. In addition, the study segments the market by software and services into behavioral and proactive. The study also covers the market in 4 major regions: North America, Europe, APAC, and RoW.
Key benefits to buy the report
The report would help key players/new entrants in this market in the following ways.
- This report segments the smart home market comprehensively and provides the closest approximations of the overall market size and that of the subsegments across different verticals and regions.
- The report would help stakeholders understand the pulse of the market and provide them with information on key drivers, restraints, challenges, and opportunities.
- This report would help stakeholders understand their competitors better and gain more insights to enhance their position in the market. The competitive landscape section includes competitor ecosystem, product launches and developments, partnerships, and mergers and acquisitions carried out in the market in the recent past.