Asia-Pacific Smart Home - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Asia-Pacific Smart Home - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Asia Pacific Smart Home Market size is estimated at USD 48.22 billion in 2024, and is expected to reach USD 186.03 billion by 2029, growing at a CAGR of 31% during the forecast period (2024-2029).

Key Highlights

• Home automation and smart homes broadly describe various monitoring solutions, controls, and automated functions. While basic home automation can include anything from motor-operated garage doors to automated security systems, smart home systems involve a web portal or smartphone application as the user interface to interact with a computerized system.
• Key drivers of this surge include the rising adoption of smartphones, expanding online business presence, and heightened government initiatives aimed at digitalizing economies. The GSMA's 2023 report, "The Mobile Economy for Asia Pacific," highlights the region's pioneering 5G markets, with countries like Australia, Japan, Singapore, and South Korea embracing 5G as a mainstream technology.
• Moreover, India stands out as one of the fastest-growing 5G markets, projected to add tens of millions of 5G connections in 2023 alone. The region is anticipated to boast approximately 1.4 billion 5G connections by 2030, representing 41% of all mobile connections.
• Asia-Pacific has also witnessed a consistent rise in unique mobile subscribers. As per GSMA forecasts, the region will see an addition of nearly 400 million new subscribers over the next seven years. South Asia, in particular, commands about two-thirds of the region's total mobile subscriber base, and it's expected to continue leading in new subscriber additions through 2030. This surge in smartphone popularity has, in turn, fueled a boom in mobile application development. Leveraging this trend, households increasingly integrate their smartphones with electronic devices to create temporary networks, especially for smart home automation.
• The smart HVACR (heating, ventilation, air conditioning, and refrigeration) systems concern the house's environmental controls. They comprise smart thermites, sensors, control valves, smart actuators, air conditioning systems, and smart room heaters. Across the region, due to the increasing government regulations across developed and developing countries, most of the new buildings need more competent heating and cooling systems, augmenting the growth of HVAC systems and the market.
• Also, integrating artificial intelligence and machine learning is revolutionizing the interaction between smart home products. AI and ML enable smart home products to display relevant content based on the weather, time of day, and other contextual factors. This allows for a more personalized and engaging experience for viewers. The rollout of 5G networks and the Internet of Things (IoT) is expected to create more demand in the market.

Asia-Pacific Smart Home Market Trends

HVAC Systems are Among the Most Significant Contributors to the Market

• The Asia-Pacific HVAC market is surging, driven by rising temperatures due to global warming and the booming construction sector. This, in turn, is spurring technological advancements in HVAC systems to enhance efficiency.
• As a result, key players in the market are largely focusing on developing intelligent, automated, and eco-friendly HVAC solutions. For instance, integrating IoT sensors allows these systems to collect real-time data, boosting operational efficiency. The adoption of IoT technology in smart HVAC solutions is revolutionizing the sector enhancing functionality and performance.
• Moreover, the industry is rapidly moving toward more intelligent, automated, and eco-conscious HVAC systems. With the advent of AI-based solutions and the integration of IoT in smart HVAC, the industry is witnessing a prominent shift towards energy efficiency, meeting the escalating demand for such systems.
• The surging demand for energy-efficient systems further bolsters automation in the HVAC sector. Notably, the International Energy Agency (IEA) predicts a remarkable surge in AC sales in Southeast Asia, from 40 million units in 2017 to 300 million by 2040, with Indonesia accounting for half of this figure.
• However, this growth comes with challenges. Without proactive measures to promote energy-efficient units, the region's cooling needs could necessitate an additional 200 GW of power generation by 2040. Cooling demands may contribute up to 30% of the region's peak electricity consumption. Recognizing these concerns, governments are increasingly focusing on energy-saving initiatives, further propelling the adoption of smart HVAC systems.

China Holds the Major Share of the Market

• Chinese consumers increasingly embrace the concept of 'smart homes' as a wave of smart devices floods the market. Brands are placing a strong emphasis on 'smartness' in their home appliances. Through strategic public-private partnerships and targeted technological innovations, China has effectively implemented smart city infrastructure in numerous major metropolises, extending its impact to the residential sector.
• Consequently, various smart home products and household equipment have seamlessly integrated into daily life in Chinese cities alongside smartphones and watches. These include smart door locks, doorbells, kitchen appliances, cat litter boxes, and intelligent sweeping and vacuum robots.
• Moreover, manufacturers of smart home devices in China are increasingly harnessing digital technologies to revamp their products. For example, air conditioners with self-learning capabilities, adjusting room humidity and temperature based on user habits, are now commonplace.
• Notably, with the rise of the construction sector, consumer enthusiasm for smart home products remains high. As per Yakai, Chinese people have 4.1 per household, the highest in the world, compared with a global average of 3.5. In addition, one-third of Chinese respondents represent 27% globally, as they have five or more such products. All these factors present a positive growth prospect for smart homes in China.

Asia-Pacific Smart Home Industry Overview

The Asia-Pacific smart home market is fragmented due to the presence of various small and large players. All the major players account for a significant market share and focus on expanding the global consumer base. Some of the significant players in the market are Schneider Electric SE, Emerson Electric Corporation, ABB Ltd, Honewell International Inc., and Siemens AG. Companies are increasing their market share by forming multiple collaborations, partnerships, and acquisitions and investing in introducing new products to earn a competitive edge during the forecast period.

In December 2023, Haier Smart Home Co. Ltd announced its intention to acquire the commercial refrigeration business of Carrier Global Corporation. The vendor intends to restructure the Target Business into the Target Company. With this transaction, the company wants to create a significant hold on molding itself towards environmental sustainability initiatives, pushing alternative refrigerants in the commercial refrigeration industry.

In October 2023, Rinnai Australia announced the acquisition of iZone, a manufacturer of smart home and ducted air conditioning control systems. The acquisition of iZone showcases a noteworthy milestone for Rinnai Australia and broadens Rinnai’s brand portfolio, which also incorporates other well-known Australian HVAC brands, such as Brivis and APAC.

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