Strategic Intelligence: Automated Home

Strategic Intelligence: Automated Home

Summary

In 1939, Popular Mechanics magazine published an article and illustration called The Electric Home of the Future. This house had doors that opened automatically, guests were greeted by an intercom system, and the lighting changed automatically based on the occupants’ needs. More than 85 years later, the automated home has moved beyond automatic doors and intercoms. A growing number of people now control their lights, heating, appliances, and security systems at the touch of a button-or even via voice commands.

Key Highlights

• GlobalData estimates global spending on automated home devices totaled $119.5 billion in 2023. Our forecasts suggest that this figure will increase to $200.8 billion by 2028, implying a compound annual growth rate (CAGR) of 11% over the forecast period. The top three automated home sub-categories by device revenue are smart appliances, smart speakers, and smart security. These accounted for 34%, 28%, and 25% of the total market in 2023, respectively. The smart appliances sub-category will continue to hold the largest market share over the next five years as its growth outstrips both smart speakers and smart security.
• The foundation of Amazon’s automated home business is its Echo range of smart speakers. The company has built on that with acquisitions, including spending $1 billion on smart doorbell manufacturer Ring. Google, with its Nest ecosystem of automated home devices, is also a market leader. Alibaba and Xiaomi dominate the Chinese market.

• This report provides an overview of the automated home theme.
• It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
• It includes global market forecasts for the automated home market and analysis of patents and company filings trends.
• It contains details of M&A deals driven by the automated home theme, and a timeline highlighting milestones in the development of the automated home.
• The detailed value chain consists of four layers: physical, connectivity, data, and apps.

• Automated home devices are increasingly pervasive in households worldwide. Consumers have been able to derive numerous benefits from installing such devices in their homes, making them more secure, more energy-efficient, and making day-to-day tasks easier. However, fears around data privacy are widespread and a significant barrier to the pervasive adoption of automated home devices. Fueled by high-profile data breaches, individuals are concerned about the hacking of automated home devices.
• This report provides an invaluable guide to this disruptive theme. It includes comprehensive lists of the leading players across all aspects of the value chain, helping companies identify the right partners.