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

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

The Canada Smart Home Market size is estimated at USD 3.02 billion in 2024, and is expected to reach USD 4.68 billion by 2029, growing at a CAGR of 9.20% during the forecast period (2024-2029).

Key Highlights

• The rapid evolution of digital technologies, particularly in computer, communication, and network systems, has ushered in a new era of urban living. Smart home technologies, a vital facet of this movement, are reshaping people's lives, offering luxury and energy savings in the real estate sector.
• Amid escalating living costs, Canadian homeowners are increasingly adopting energy-saving solutions to reduce expenses and minimize their environmental impact. A recent study from Schneider Electric reveals that 73% of Canadian homeowners experienced a rise in their electricity bills over the past year. Additionally, 71% are interested in integrating energy monitoring systems, while 63% are considering smart switches to mitigate these financial increases. Through the adoption of smart home technology, homeowners can pinpoint the most cost-effective energy sources and optimize their usage. By leveraging data-driven AI predictions and automation, Canadians stand to slash their consumption and heating expenses by a substantial 50%.
• Further, homes and buildings remain a notable contributor to greenhouse gas emissions, accounting for 18% of Canada's total emissions, once electricity consumption for heating, cooling, lighting, and appliances is factored in. As Canada strives for net-zero emissions, balancing this with the pressing need for new homes amid an affordability crisis, energy solution providers play a crucial role. Schneider Electric has introduced a suite of connected living products tailored to meet the critical priorities of Canadian homeowners. These products simplify installation, ensure user-friendliness, and emphasize long-term durability and sustainability.
• Moreover, smart homes empower users to control various domestic appliances, streamlining daily tasks and enhancing convenience. By harnessing AI and other innovations, these homes are evolving toward complete automation, lightening the load on users in managing their appliances and routines. Canadian homeowners increasingly use technology to enhance their residences' safety and comfort.
• Smart security products, such as smart locks and smart surveillance cameras, have seen substantial investments and innovations due to increasing worry about personal safety and property protection. For instance, in October 2023, Ecobee unveiled its latest Smart Doorbell Camera (wired) innovation. This device boasts an unparalleled vertical field of view with crystal-clear day and night vision and radar sensing technology, and it offers enhanced detection and intelligent notifications. Notably, eschewing a battery, it is built to endure extreme temperatures, ensuring unwavering security. Moreover, it is primed for integration with the Ecobee Smart Thermostat Premium, enabling a feature: live streaming directly on the thermostat screen.
• However, the surge in data transmission via smart devices and wireless networks has heightened public worries about privacy and cybersecurity, acting as a significant hurdle to the widespread adoption of smart homes. Smart homes gather, process, and share a broad spectrum of personal data, even the most sensitive, like location, behavior, and health information, to offer perks like convenience and energy efficiency. Smart home technologies enabled by IoT effectively extend traditional home boundaries into the digital realm.

Canada Smart Home Market Trends

The Energy Management Segment is Expected to Hold a Significant Share in the Market

• With the advent of the smart grid era and the development of advanced communication and information infrastructures, bidirectional communication, advanced metering infrastructure, energy storage systems, and home area networks are set to transform electricity usage and energy conservation at consumption premises. Under the sustainable smart grid paradigm, smart homes equipped with a home energy management system (HEMS) significantly enhance distribution systems' efficiency, economics, reliability, and energy conservation.
• Further, Canadian consumers increasingly recognize the significance of curbing energy consumption and reducing carbon footprint. Consequently, there's a surging demand for smart home technologies like smart thermostats, plugs, and energy monitoring systems. These technologies empower homeowners to fine-tune their energy usage, ultimately aiming to slash utility costs.
• The government of Canada has rolled out a range of incentive programs and policies to boost the uptake of energy-efficient technologies, notably smart home solutions. For instance, many provinces provide rebates and tax credits, incentivizing the installation of smart thermostats and energy management devices, thereby catalyzing consumer interest.
• Canadian electricity prices have surged in recent years, straining household budgets. Smart home energy management products empower homeowners by offering precise energy monitoring and control, leading to tangible reductions in both consumption and costs. According to Energyhub, as of September 2023, the average electricity cost for end users in Canada stood at 19.2 Canadian cents per kilowatt-hour, showcasing regional disparities.

Increasing Inclination Toward Enhancing the Quality of Life is Driving the Market's Growth

• As the cost of living rises, Canadian homeowners increasingly seek affordable smart home solutions. Consequently, there has been a surge in the demand for smart home products and services. The widespread adoption of smartphones, coupled with the availability of high-speed internet, has significantly propelled the growth of smart home technology. Smartphones are the central control hub for many home automation systems, enabling users to monitor and manage various aspects of their homes remotely.
• In addition, consumer interest in adopting 5G in smartphones to avail elevated network performance to cater to high-performing video streaming accelerates the increasing penetration of smartphones in Canada, facilitating the seamless adoption of smart home automation. According to GSMA, mobile connections' 5G adoption rate is expected to increase to 49% by 2025.
• IoT devices with sensors and connectivity features establish seamless communication among themselves and homeowners, fostering a cohesive smart home ecosystem. This network empowers homeowners in Canada to manage lighting, temperature, security, and entertainment systems, enhancing their daily comfort and convenience. For instance, smart thermostats are crafted to monitor and fine-tune home temperatures, balancing comfort and energy savings.
• Smart home technology enhances convenience and comfort, granting homeowners unparalleled control over their living spaces. Through a centralized interface or simple voice commands, users effortlessly adjust settings and automate tasks.
• For instance, they can remotely illuminate their homes, tweak the temperature, or activate appliances such as coffee makers or air purifiers before entering the door. Such seamless control saves time and elevates daily comfort and efficiency.

Canada Smart Home Industry Overview

The Canadian smart home market is fragmented with local and global players. The significant players are strengthening their market positions through innovation, partnerships, and research on new technology, mergers, and acquisitions. Some of the significant players in the market are ABB Ltd, Ecobee, Schneider Electric SE, TELUS International, and Johnson Controls.

• March 2024 - ABB Smart Buildings expanded its ABB-free@home system, incorporating the latest Matter technology and additional partner add-ons. This update boosts interoperability and empowers users with enhanced flexibility. They can now select from a broader array of smart home devices, simplifying the process of expanding and tailoring their setups. ABB-free@home integrates with major smart home ecosystems like Apple Home, Google Home, Amazon Alexa, and Samsung by leveraging the Matter firmware, which gains traction as an open-source connectivity standard.
• September 2023 - Ecobee, a smart home company headquartered in Toronto, launched dual energy-saving initiatives. Collaborating with the Independent Electricity System Operator (IESO) and Hydro One, these programs aim to bolster Ontario's electricity grid by alleviating strain during peak demand. Ontario residents with smart thermostats stand to gain, receiving a USD 75 incentive upon enrolling in either the IESO's 'Save on Energy Peak Perks' or Hydro One's 'myEnergy Rewards' program.

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