Smart Homes Market Overview:
The Smart Homes Market size is estimated to reach $289 billion by 2030, growing at a CAGR of 14.5% during the forecast period of 2023–2030. Smart home technology is also known as "home automation," which provides homeowners with security, comfort, convenience and energy efficiency by allowing them to control smart devices.
Rising use of IoT-based electronic devices, increasing consumer demands for secure and convenient smart home technology and appliances and the adoption of wireless communication technologies are set to drive the Smart Homes Market growth. According to Security Today, India's smart home security camera market would grow 116% year-on-year by 2022. In Q2 of 2022, home security cameras grew 7%. The top brands such as Xiaomi and EZViZ put more efforts towards offline retail channels, which greatly increased their customer reach. This represents the Smart Home Industry Outlook.
Smart Homes Market - Report Coverage:
The “Smart Homes Market Report - Forecast (2023-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Smart Homes Market.
COVID-19 / Ukraine Crisis - Impact Analysis:
- The COVID-19 pandemic positively impacted the Smart Homes Market. Demand for smart electronic devices increased as remote work conditions improved. Smart lighting, security and health devices with internet-connected remote monitoring systems were in high demand. However, the increased demand for smart home automation products post-pandemic would cause the smart home industry to grow.
- The conflict between Russia and Ukraine resulted in significant losses of life and property. It also caused supply chain disruptions, a rise in commodity prices and a global impact on many markets. It also significantly affected the market for smart home hardware (displays, cameras, smart lighting, sensors and others).
The Dominance of the North America Region
Geographically, North America held the largest Smart Homes Market share with 41% of the overall market in 2022. It is poised to dominate the market over the period 2023–2030. This is due to increased security concerns among consumers due to the availability of technologically advanced monitoring systems.
Hardware Segment Had the Largest Share
According to the Smart Homes Market forecast, the hardware segment held the largest market share in 2022, i.e., $61 billion and it is anticipated to reach $173 billion by 2030. This is due to the growing need for security & access control and the ongoing transition from traditional security cameras and other security devices to smart IoT-based security devices.
Increasing Accessibility of Interruption-free Internet Services
Based on Protocols and Standards, the wireless protocol segment is estimated to grow at the fastest CAGR of 15.4% during the forecast period of 2023–2030. The increasing switch to wireless communication technologies such as 5G technology with digitalization and enhancements in global internet services with fewer interruptions would drive the Smart Homes Market growth.
Increasing Demand for Aesthetic Home Interiors among Consumers
Advanced smart home automation, such as security & access control, entertainment and lighting control systems and HVAC control systems, comes in a variety of ranges and is loved by consumers due to its efficient service and aesthetic designs. According to a recent study, more than 220 million smart home devices were shipped worldwide in the third quarter of 2021. The majority of them were video entertainment devices, with 78.3 million units, which significantly contributed to market growth.
Initiatives by Global Authorities to Promote the Use of Energy-efficient Smart Devices
The world is widely transitioning towards sustainable resources and options for energy-efficient smart home products such as speakers, lighting systems and security systems. In August 2022, ETCIO stated in its article that in 2021, global shipments of smart speakers were estimated at 195 million units, followed by lighting and other connected devices. It also stated that the global installed base of smart home devices was estimated to exceed 2 billion by 2022.
Lack of Infrastructure and Internet Facilities in the Least Developed Countries to Hamper Market Growth
According to Smart Homes market analysis, lack of infrastructure is one of the primary factors hampering the market growth. As per the recent Connectivity in the Least Developed Countries (LCDs): Status Reports 2021, 46 LCDs with a combined population of 1.06 billion people are highly vulnerable due to low levels of human development. There is a significant gap in national transmission networks, Internet exchange points (IXPs) and data centres. The lack of basic facilities would not allow consumers to opt for smart home devices and would hamper the market's growth.
Smart Homes Market: Market Share (%) by Region, 2022
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Key Market Players:
Scope of Report:
Frequently Asked Questions:
i. What is the growth rate of the Smart Homes Market during the forecast period?
The Smart Homes Market is projected to grow at a CAGR of 14.5% during the forecast period 2023-2030.
ii. What is the predicted growth of the Global Smart Homes Market size from 2022 to 2030?
The global Smart Homes Market size is estimated to be $98 billion in 2022. It is projected to reach $289 billion by 2030.
Report Code: ITR 67656
Report Code: ESR 0138
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