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

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

The South Korea Smart Home Market size is estimated at USD 5.45 billion in 2024, and is expected to reach USD 11.52 billion by 2029, at a CAGR of 16.15% during the forecast period (2024-2029).

Key Highlights

• Concerns about home security and safety are driving the expansion of South Korea's smart home market. With urbanization on the rise and more households having dual incomes, there's a growing demand for technologies that protect homes and their inhabitants. Features like remote monitoring, enhanced surveillance, and access control are pivotal in encouraging the shift toward smart security solutions.
• Heightened awareness of both physical and digital vulnerabilities has led to a surge in the adoption of smart security systems. These encompass smart locks, surveillance cameras, motion sensors, and AI-driven monitoring tools, all of which empower homeowners with real-time remote oversight, bolstering their security.
• The integration of security features into homes is becoming seamless, thanks to the widespread adoption of IoT-enabled devices. In response to this growing demand, companies are rolling out advanced, user-centric smart home solutions. These offerings frequently include added automation capabilities, such as energy management and appliance control, broadening their appeal.
• However, the smart home market grapples with challenges, notably the intricate nature of installing and integrating multiple devices. Many systems require extensive wiring, specific network configurations, and the smooth coordination of various appliances and sensors. Given that urban areas, particularly apartments, dominate South Korea's housing scene, retrofitting these spaces with cutting-edge smart technologies proves daunting. This is especially true for older apartment complexes in cities like Seoul and Busan, which often lack modern infrastructure. As a result, homeowners and tenants struggle with system setups, especially when aiming for seamless integration on a unified network.
• The COVID-19 pandemic has heightened the demand for smart home devices, leading consumers in the country to favor smart appliances over traditional electronics. Luxury residential real estate firms are now incorporating voice and motion sensor controls into their projects. In a post-pandemic world, these features are becoming essential in modern properties. With mobile phone integration, these properties might soon offer remote switching from any location. While luxury smart homes previously allowed users to activate the bedroom air conditioner from a distance, the next evolution will see nearly all major appliances under remote control.

South Korea Smart Home Market Trends

Surge in Smart Appliance Adoption Propels Smart Home Services in South Korea

• The South Korean government is cultivating an innovation ecosystem, emphasizing government, industry, and academic collaboration. Leading this charge is the adoption of Internet of Things (IoT) technology for home management. Smart kitchen appliances are evolving, boasting features from energy efficiency to Wi-Fi capabilities. For instance, modern smart microwaves can scan food barcodes, fetch cooking instructions, and seamlessly integrate with AI voice assistants for a hands-free experience.
• In August 2023, the South Korean government unveiled the Intelligent Home (Vestal) initiative, collaborating with key industry players. This venture aims to embed smart technologies in apartment buildings, elevating residential living standards. Vestal certification will bolster the branding and acceptance of these smart homes. Spanning from appliance manufacturing to AI integration, the initiative envisions a unified global standard for home appliances, offering AI-driven personalized services.
• In May 2023, Korea Land and Housing Company (KLS) and the Information Technology Consortium (ITC) unveiled a Smart Home Platform that employs an open Internet Protocol framework, leveraging IoT and cloud computing for appliance management, aiming to enhance living experiences. Utilizing cloud technology, the framework facilitates three primary connections: device-to-device, device-to-cloud, and inter-cloud communication. It guarantees secure device communication over networks like Wi-Fi and permits connections such as Bluetooth via proxies. This cloud linkage enables enhanced control of home appliances.
• Further, as part of the development, each home will feature an IoT smart hub dashboard capable of analyzing big data and managing 15 device types through the Smart Home app. These panels, sensitive to dust and carbon dioxide, began trials in 5,000 homes, with ambitions to expand to 228,000 by 2024.
• Furthermore, the degree of urbanization in South Korea is also boosting the adoption of smart home appliances. Overall, South Korean vendors emphasize smart living and kitchen appliances, connected devices for air purification, and solutions for clean floors. These innovations promise enhanced convenience, superior performance, and a sustainable lifestyle, driving market growth.

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 for homes. Consequently, renters and homeowners are following suit, opting for a diverse range of smart LED options for their interior lighting.
• Smart lighting systems swiftly overtake traditional lighting solutions due to their cost-effectiveness, sustainability, and reduced power consumption. These systems, controlled via smartphone applications, simplify user interaction. Installing smart lighting in homes serves as a foundational step in smart home development. In South Korea, there's a notable surge in the adoption of connected smart lighting, window and door sensors, shading devices, and garage door controls.
• According to the Central Intelligence Agency (CIA), as of 2023, 81.5% of South Korea's population resides in urban areas. Major urban centers include Seoul, Busan, Incheon, Daegu, Daejeon, and Gwangju. The World Bank projects that by 2050, nearly 70% of the global population will inhabit cities, equating to an additional 2.3 billion people. This urban growth underscores the rising demand for smart cities, affordable housing, and smart infrastructures.
• In September 2024, LG Electronics Inc. (LG), South Korea's consumer and home electronics company, launched a comprehensive range of AI-based home solutions catering to diverse needs and lifestyles. The LG ThinQ ON, an advanced AI home hub, offers comfort and convenience tailored to individual preferences. It learns about users' routines and behaviors and crafts a personalized spatial experience, enhancing everyday life.

South Korea Smart Home Industry Overview

The competitive rivalry in South Korea's smart home market is heavily influenced by the dominance of the broader home appliance sector. Major players like Google, LG Electronics Inc., Honeywell, Schneider Electric, and ABB boast strong brand identities, effective competitive strategies, and robust distribution networks, leading to heightened competition in the smart appliance arena.

Yet, the strategies employed differ across product segments, reflecting the market's diverse offerings. For example, in July 2024, Samsung revealed that more than 200,000 households from 248 apartment complexes in South Korea had signed up for SmartThings Pro. These sign-ups are specifically for integrating SmartThings Pro into their apartment complexes. Furthermore, Samsung partners with construction firms to implement SmartThings Pro in both residential and commercial properties.

Market leaders not only wield significant influence but also benefit from a solid brand reputation. Given that established brands are often associated with reliable performance, these seasoned players are poised to maintain a competitive edge.

Consequently, the intensity of competitive rivalry is currently high and is projected to persist throughout the forecast period.

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• The market estimate (ME) sheet in Excel format
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