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

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

The Latin America Smart Home Market size is estimated at USD 3.10 billion in 2024, and is expected to reach USD 5.22 billion by 2029, growing at a CAGR of 11% during the forecast period (2024-2029).

Key Highlights

• The Latin American smart home market is witnessing a significant growth trajectory, fueled by increasing urbanization, technological advancements, and a rising middle class with higher disposable income. Although the market is still nascent compared to more developed regions, it is rapidly evolving.
• Urbanization is a significant driver; as cities expand and more people migrate to urban areas, there is a growing demand for smart solutions. Cities like Brazil, Mexico, and Argentina are contributing to a rising middle-income population that is likely to be interested in smart home technologies that offer convenience, security, and energy savings.
• As remote work is becoming increasingly prevalent, consumers in the region are embracing the concept of smart homes to enhance comfort and functionality in their living spaces. According to a report by GfK Latam, Brazil leads the region with an average ownership of 1.3 smart devices per household, indicating a growing interest and potential for further expansion.
• One of the primary drivers of this growth is the shift toward hybrid work models, which has prompted consumers to seek solutions that optimize their home environments for both productivity and relaxation. This newfound emphasis on home functionality presents a prime opportunity for companies to introduce innovative smart home products tailored to the needs and preferences of Latin American consumers.
• Furthermore, technological advancements and improved connectivity are crucial enablers of the smart home market. The proliferation of IoT is making it possible to connect various devices and systems within homes, allowing for seamless integration and automation. The arrival of 5G networks is expected to enhance the reliability and speed of internet connection, which are critical for the optimal performance of smart home devices. 5G Americas predicts that the number of people using 5G in Latin America will reach 501m by 2028, and GSMA estimated in 2023 that the 5G penetration rate is expected to reach 57% by 2030.

Latin America Smart Home Market Trends

Brazil is Experiencing Significant Demand for Smart Homes

• The Brazilian smart home market is growing, driven by a combination of technological advancements, increasing consumer awareness, and strategic collaborations among key industry players. According to various sources, Brazil represents a significant portion of the region's smart home market as the largest economy in Latin America, with a current population of approximately 217.5 million as of 2024.
• Technological advancements are at the forefront of Brazil's smart home expansion. The proliferation of IoT has enabled a wide range of interconnected devices, creating more cohesive and efficient smart home systems. According to a survey conducted by GWI published in February 2024, 99.1% of the respondents used a smartphone, 27.16% used a tablet, and 16.1% used a smart home device.
• According to the Brazilian Institute of Statistics (IBGE), the number of households in Brazil increased by 34.21% from 2010 to 2022, corresponding to the population's rise. With an urbanization rate of approximately 87%, this continued growth is expected in the near future as the country advances economically and technologically. This will lead to an increase in demand for smart home solutions such as security and home comfort.
• Furthermore, in February 2024, 1NCE announced that its customers now have nationwide access to Brazilian networks for better IoT at disruptive rates. 1NCE customers can use IoT everywhere in Latin America.

The Smart Home Security Segment is Expected to Witness Growth

• The smart home security segment is expected to witness growth driven by a combination of increased awareness of home security needs and a growing middle class with disposable income. The development of IoT technology is a primary driver with technology that enables homeowners to manage and monitor their security systems from anywhere using smartphones or other connected devices. According to data published by DataReportal, the internet penetration rate in Latin America is 82.6% as of 2024, indicating a positive market driver.
• Increased urbanization in Brazil has led to higher city crime rates, making home security a critical concern for residents. Countries such as Brazil and Mexico and cities such as Sao Paulo and Mexico City record some of the highest crime rates. This has driven demand for advanced security solutions that can effectively provide real-time alerts and deter criminal activities.
• In 2023, the Brazilian government rolled out 40,000 cameras equipped with AI technology in Sao Paolo for surveillance purposes, indicating a shift toward the latest technology to keep crime rates in check. Consumers are expected to follow similar actions to protect their homes. Brazilian consumers have a growing awareness of the benefits of smart home security systems.
• Development at an overall country level is conducive to the market’s growth, with cities such as Mexico City taking big leaps in terms of becoming digitized and smart. More than 80% of the population in countries such as Mexico and Brazil use the Internet, and the numbers are only expected to increase. With the widespread availability of high-speed Internet and the growing penetration of mobile devices, more households can support and manage smart security systems.
• Furthermore, the growth of e-commerce platforms in Latin America has made it easier for consumers to access a wide array of smart home security products. Online retail companies like Mercado Libre are crucial in distributing these technologies across the region.

Latin America Smart Home Industry Overview

The Latin American smart home market is fragmented, with local and global players offering diverse smart home devices and integrated systems tailored to local preferences. The fast pace of technological advancements and the growing consumer demand for innovative solutions intensify the competition.

• March 2024 - Samsung Electronics seamlessly integrated ABB-free@home automation into its SmartThings platform, offering residents a single, comprehensive app for managing diverse appliances and devices from various manufacturers. This partnership creates a world-class automation platform, simplifying home management and eliminating application overload. ABB-free@home now interacts with all SmartThings partner solutions, providing remote access and individualized control.
• March 2023 - Johnson Controls unveiled the IQ4 NS Security and Smart Home System, offering the quality and reliability of the IQ Panel 4 at an entry-level price. The screen-free system allows users to access features from smart devices for added convenience and cost savings.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support