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Smart Homes Market Analysis

The Smart Homes Market size is estimated at USD 120.10 billion in 2024, and is expected to reach USD 225.82 billion by 2029, at a CAGR of 11.09% during the forecast period (2024-2029).

Smart homes utilize a communication network to connect various appliances. These homes feature electronic devices, lighting, and heating systems that can be remotely controlled, monitored, and accessed via smartphones or computers. Today's smart homes can even learn residents' habits, adjusting control systems to simplify daily tasks. Key trends fueling the growth of this market include the swift adoption of smartphones, increasing internet user penetration, and heightened awareness of energy-saving and low-carbon emission solutions.

• They are driven by a new wave of smart home devices—like connected light bulbs, smart speakers, and smart locks—and the innovative home landscape is witnessing significant growth. In recent years, a surge of emerging startups in the smart home and IoT gadget sectors has rapidly expanded the market. Consequently, this influx of startups has led to a notable drop in the prices of smart home devices, boosting their adoption across various regions.
• In January 2023, Schneider Electric, a leader in energy management and automation digital transformation, unveiled Schneider Home. This pioneering home power management solution caters to homeowners who prioritize savings, energy independence, and comfort. Schneider Home encompasses a home battery for clean energy storage, an electric vehicle charger, a smart electrical panel, a robust solar inverter, and connected electric sockets and light switches, all managed via the Schneider Home app. This comprehensive solution aims to revolutionize how homeowners interact with and manage their energy consumption, promoting a more sustainable and efficient lifestyle.
• Connected energy management devices offer enhanced functionality. Over the past two years, the demand for smart thermostats and smart lighting systems has surged, primarily due to their reputation for saving money and ease of use. Consequently, these advancements are anticipated to drive a demand for installation services, bolstering market growth. For example, in June 2024, ABB introduced the ReliaHome Smart Panel, marking its debut residential energy management software platform in the US and Canada.
• The emergence of 5G technology is expected to accelerate the development of interconnected and high-performance smart home ecosystems, providing users seamless and faster connectivity. Due to the significant rollout of 5G in various regions and improved connectivity technologies, such as Wi-Fi 6, smart home devices can be linked by more immediate, more powerful networks, meaning better credentials for processing and data resources in the cloud. According to Ericsson, global 5G subscription is anticipated to reach 5.6 billion by 2029.
• Security stands out as a pivotal trend in smart home technology. The vulnerability of even a single smart device, if equipped with weak security protocols, can jeopardize the entire ecosystem. Consequently, security emerges as one of the fastest-evolving sectors within the smart home market. This trend underscores the surge in popularity of connected security devices, such as smart locks, doorbells, and cameras. As we move towards a future where many devices are constantly tracking activities, there's an escalating demand for heightened security measures for these devices. In response, designers and developers of these interconnected systems are integrating sophisticated authentication methods. A case in point is Avira's SafeThings router, which fortifies a household's smart systems, safeguarding them from cyber-attacks, espionage, and other potential intrusions.
• Despite the growing popularity of smart home devices, their higher associated costs pose a significant challenge, hindering the market's expansion. Numerous manufacturers and products also populate the smart home landscape, each potentially utilizing distinct platforms and communication protocols. This fragmentation, coupled with a lack of interoperability, complicates consumer matters. Those aiming to integrate devices from various manufacturers into a cohesive smart home solution often encounter challenges, limiting the overall utilization of these technologies.
• Several macroeconomic factors influence the market's growth. For example, the COVID-19 pandemic significantly heightened awareness of smart home devices. As people were confined to their homes, their exposure to these devices and technologies increased. Additionally, the economic growth in emerging regions is expected to bolster the market. As consumers' spending capabilities rise, so will the adoption of smart home devices and the concept of smart homes.

Smart Homes Industry Segmentation

Smart home devices enable homeowners to remotely control various functions from anywhere in the world, as long as they have an internet connection. In a smart home, devices are interconnected via the Internet, allowing users to easily manage security access, lighting, temperature, and home theater systems.

The study thoroughly analyzes global trends and dynamics in the smart home market. The market figures have been derived by monitoring the revenue generated from smart home solution sales by leading global players. Additionally, it tracks the installed base (in units) of smart home devices from these key players, from the integration of smart homes across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa, using it as a foundation for the installed base of smart home estimates. All data and estimates are adjusted to account for various macroeconomic factors and the market's underlying growth influencers.

The market studied is segmented by components (consumer electronics [by appliance type [smart speaker, smart home theater, smart purifier, other home appliances]] key trend analysis, list of key players), (access control, safety and security [by component type [hardware, software, services]], [by product type [smart alarm, smart locks, smart sensors, detectors, smart cameras and monitoring systems, hazard detectors/garage door operators, other product types]], key trend analysis, list of key players), lighting (by smart home lighting products [smart lighting, smart lamp and luminaries, ambient lighting, other smart home lighting products], key trend analysis, list of key players), energy management (by application [smart home lighting energy management, smart home central control energy management, smart home HVAC energy management controls], by connectivity [wireless protocols, wired protocols, hybrid] key trend analysis, list of key players), smart home climate control/hvac control (by product type [fans, radiators, thermostats, air conditioners], key trend analysis, list of key players), smart home controllers/hubs (by product type [DIY hubs/panels, professional hubs/panels], key trend analysis, list of key players), smart home healthcare (by product type [medical device alert system, smart glucose monitoring system, smart cardiac monitoring system], by application [fall prevention and detection, healthcare status monitoring, others], key trend analysis, list of key players), smart home kitchen (by product type [smart refrigerators, smart cookware and cooktops, smart dishwashers, smart ovens, others], key trend analysis, list of key players)), by housing type (single, multi), by installation type (new construction, retrofit), by sales channel (online, offline), and by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD billion) and installed base (in units).