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

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

The South Korea Smart Home Market size is estimated at USD 4.80 billion in 2024, and is expected to reach USD 12.55 billion by 2029, growing at a CAGR of 21.20% during the forecast period (2024-2029).

Key Highlights

• Digitalization has emerged as a linchpin for economic growth in the 21st century. It not only fosters new economic activities and products but also bolsters productivity. Consequently, staying competitive in the market now mandates a robust digitalization strategy. South Korea has adopted a "government-driven, infrastructure-first" policy for digital transformation to revitalize economic growth. This strategic approach aims to democratize digitalization, ensuring all citizens, regardless of their economic status, can participate in the nation's innovation and inclusive growth drive. This inclusivity was a pivotal factor that catalyzed the inception of home automation in South Korea.
• South Korea stands out as a global leader in connectivity. According to APNIC, the nation boasts 100% exceptional household Internet accessibility, with all 21.36 million households seamlessly connected. This universal access underscores the nation's commitment to ensuring its populace can leverage the Internet's vast resources and opportunities.
• Having already claimed top spots in high-speed internet adoption and smartphone ownership, South Korea is now setting its sights on cutting-edge technologies like 5G and the Internet of Things (IoT). The surge in IoT adoption in South Korea is propelled by its integration into smart city initiatives and a populace increasingly open to embracing new technologies and purchasing related devices, thereby amplifying the role of automation in their daily lives.
• Moreover, South Korea's heightened emphasis on expanding its roster of smart cities is extending the reach of digital infrastructure into the residential sector. For instance, in May 2024, South Korea was in discussions with the UAE to collaborate on smart cities, clean energy, and future mobility projects. As cities evolve into smarter, more sustainable entities, adopting advanced technologies streamlines day-to-day operations and enhances overall comfort levels, benefiting both urban and suburban communities.
• Despite strong network connectivity, extensive use of mobile devices, and a rich intellectual property landscape, South Korea faces significant cyber threats. The nation considers cybersecurity a crucial part of national security in response to this serious situation.
• While South Korea boasts one of the world's fastest IT infrastructures, its susceptibility to cyberattacks poses a significant challenge, potentially impeding market growth. However, buoyed by its advanced ICT infrastructure and strategic geopolitical positioning, South Korea emerges as an alluring market for the smart home sector.

South Korea Smart Home Market Trends

Rising Focus Toward Energy Efficiency is Driving the Market

• South Korea actively pushes its energy transition toward cleaner and safer sources. This shift involves reducing reliance on coal and nuclear energy while ramping up the adoption of renewables. On the demand side, the focus is on developing energy-efficient electronic products. Since the Energy Use Rationalization Act of 1979, South Korea has consistently rolled out energy demand management policies.
• Despite these efforts, South Korea's energy efficiency metrics paint a concerning picture. The nation is one of the highest energy consumers per capita globally, but its energy intensity only ranks 33rd among OECD member states.
• Recognizing the urgency of revamping its consumption patterns, South Korea unveiled the National Plan for Energy Efficiency Innovation. This plan mirrors the strategies advocated by the International Energy Agency (IEA): leveraging incentives to boost private investments, employing market-based tools for innovation, and emphasizing robust data collection.
• In a significant move in June 2023, South Korea inked a pact with 30 major energy-consuming corporations, offering tax breaks, financial rewards, and enhanced policy support to those championing energy conservation.
• These initiatives underscore South Korea's commitment to energy efficiency and open lucrative avenues, especially in the burgeoning smart home market. Smart home technologies, such as advanced HVAC systems, can dynamically adjust heating or cooling based on residents' presence, curbing energy wastage in unoccupied spaces.

Comfort and Lighting to Witness Significant Growth

• With growing concerns regarding targets of reducing carbon emissions, many property owners are embracing sustainability by transitioning to LED lighting in their residential communities. With extensive lighting networks that operate 24/7, these properties are finding significant energy savings by switching to smart LED solutions. Consequently, renters and homeowners are following suit, opting for a diverse range of smart LED options for their interior lighting.
• The journey of smart lighting in South Korea has been remarkable. The advent of LED technology marked a pivotal moment, revolutionizing the lighting landscape. For instance, in March 2024, Gocheok Sky Dome, Seoul's exclusive domed baseball park in the western part of the city, received a significant facelift in preparation for the momentous Major League Baseball (MLB) season-opening series. The Seoul government disclosed that the stadium now boasts a fresh 11,493 square meter (2.8 acres) artificial grass surface, a first of its kind in the nation. Also, the lighting system has been upgraded to brighter, more energy-efficient LED lights, effectively replacing the previous metal halide lamps. Notably, the venue has also added 56 vibrant-colored LED lamps to enhance the ambiance for the event.
• With their enhanced energy efficiency, durability, and extended lifespan, LEDs outshine traditional bulbs. A key trend in smart homes is the surge of intelligent lighting and home automation. Consumers now seek lighting solutions that can be controlled remotely via smartphones, voice assistants, or integrated smart home systems, offering convenience and installation flexibility.
• Korea's LED industry lagged behind Japan and Taiwan in its inception, aligning more closely with China's timeline. Yet, Korea swiftly outpaced its counterparts in advancements. Despite this, the Korean LED sector faced a steeper decline compared to Japan, China, and Taiwan. The industry's evolution unfolded in distinct phases: first, led by upstream manufacturers in what was dubbed the "double E era," then marked by the entries of tech giants Samsung and LG during the Solid State Lighting (SSL) peak, and finally, a notable retreat as a response to China's burgeoning LED sector.
• URC made waves in June 2023 by unveiling its URC Lighting LT-3300, a versatile lighting solution. This innovation empowers installers to choose between dimmers or switches, enabling easy programming for tailored atmospheres for lively gatherings or serene family moments. Noteworthy features include auto load detection and streamlining installations by eliminating the need for specific configurations unless used as an accessory.
• Also, Korea's spotlight has shifted toward OLEDs and quantum dots. The nation leverages its robust electronic export market and a well-established supply chain. Yet, despite these strengths, Korea's product portfolio often needs the spark of true innovation.

South Korea Smart Home Industry Overview

The South Korean smart home market is fragmented, with 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 August 2023, the South Korean government announced the launch of Intelligent Home” also known as AIHome, through a collaborative effort involving prominent companies in various sectors, including Samsung, LG, Hyundai E&C, and Korea Land & Housing Corp. (LH). The project is expected to create intelligent homes within apartment buildings, enhancing residential living through technologies.

In July 2023, Cerence Inc. introduced a suite of low-footprint AI products designed specifically for Internet of Things (IoT) applications to meet the diverse needs of customers. The new launch includes Cerence Audio AI Lite and Cerence Input AI Lite, bringing the power of Cerence technology to products where only a small footprint is possible, particularly relevant for IoT products like CVNet’s smart home devices, the first products to leverage this new offering from Cerence.

Additional Benefits:

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