Market Trends of Smart Homes Industry
Lighting Segment is Expected to Drive the Market Growth
- With the rise in demand for smart homes, it is affordable to automate homes by enabling remote controls for lights and online communications. Significant companies are innovating smart lighting products and making them available to individuals. Advanced lighting products are voice-activated with motion sensors and have features that reduce energy consumption and make them more efficient.
- As economies worldwide grapple with energy waste concerns, there's a notable shift towards adopting smart and energy-efficient lighting solutions. Governments are championing the cause of LED adoption, primarily through regulatory frameworks that enforce energy efficiency standards. For instance, the European Union's Energy Labelling Regulation and Eco-design Directive establish stringent minimum efficiency benchmarks for lighting products. This not only ensures that products sold within the EU meet high standards but also pushes manufacturers towards innovation, particularly in the realm of energy-efficient LEDs. Such regulatory measures aren't confined to the EU; other regions have instituted similar regulations, fostering a conducive environment for the growth of the studied segment.
- The US Department of Energy reported that lighting constitutes approximately 15% of a typical household's electricity consumption. This highlights the significant savings potential for families through a straightforward upgrade to energy-efficient lighting. Furthermore, the US Department of Energy notes that households can save around USD 225 annually by switching to LED lighting. These savings are further amplified with the integration of smart components, like advanced lighting control systems, poised to be a primary driver for the segment's growth.
- As the demand for the Internet of Things (IoT) surges, so does the growth of connected lighting systems. Philips, a major player in the lighting market, predicts that intelligent lights will emerge as the most influential IoT devices in the next five to ten years. Additionally, the expanding IoT networks and high-speed data connectivity are set to boost the demand for IoT-enabled lighting solutions in the coming years.
- Residential facilities increasingly adopt smart lighting to adjust ambiance in real-time, responding adeptly to occupant activities. Beyond this, smart lighting is evaluated for pioneering applications, notably human-centric lighting. Such advancements are poised to bolster the adoption of smart home lighting solutions in the coming years. Additionally, the market's expansion is fueled by a rising acceptance of these smart lighting solutions. As per the Consumer Technology Association (CTA), revenue from smart light bulbs and kits in the US was projected to hit USD 757 million in 2023.
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Asia-Pacific聽to Experience Significant Market Growth
- During the forecast period, the Asia-Pacific region is set to experience significant growth in smart home adoption. This trend is bolstered by several factors: an enhanced standard of living, rising disposable incomes, and widespread access to smartphones and the Internet. Additionally, the increasing use of AI-driven digital assistants like Siri and Alexa for everyday tasks further fuels the growth of the market.
- Governments' initiatives promoting the adoption of innovative home technologies are significantly driving the market's growth. For example, ASEAN countries have recently witnessed increased Chinese investments in major infrastructure projects. These projects, such as New Clark City, Forest City Johor Bahru, New Manila Bay City of Pearl, and Thailand's Eastern Economic Corridor, incorporate smart city elements, fostering a conducive market expansion environment.
- Government-led smart city initiatives are also augmenting the boost in smart home demand. For instance, Ho Chi Minh City focuses on advanced technologies to become a smart city by 2025. A similar trend has been observed across other countries. For example, the Indian government has worked on its smart city initiative for over a decade. Hence, such trends and developments also create a favorable ecosystem for the growth of the market studied.
- In response to rising demand, numerous market players are introducing solutions tailored for residential users, aiming to bolster their market penetration. Additionally, various regional firms actively develop products to solidify their market foothold. Google made its foray into the Indian market with the launch of its smart speakers. These speakers not only control advanced home products but also seamlessly integrate with both Android and iOS platforms.
- Similarly, Hisense unveiled its latest air conditioner lineup in India. The company introduced two series: IntelliPro and CoolingXpert. These new air conditioners boast features like WIFI Voice Control and a 5-in-1 Convertible Pro, allowing users effortless control over temperature and modes.
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