United States Smart Homes Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

United States Smart Homes Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The US smart homes market was valued at USD 22.74 billion in 2020, and it is expected to reach USD 49.98 billion by 2026, registering a CAGR of 12.18% during 2021-2026.

• Home automation and smart homes are two ambiguous terms used in reference to a wide range of monitoring solutions that control and automate functions in a home. Unlike simple home automation solutions (which could range from motor-operated garage doors to automated security systems), smart home systems require a web portal or a smartphone application as a user interface to interact with an automated system.
• The increasing importance of the need to counter security issues is anticipated to fuel the demand for smart and connected homes over the forecast period. Moreover, innovative wireless technologies, including security and access regulators, entertainment controls, and HVAC controllers, are expected to foster market growth. The recent advancements pertaining to the Internet of Things (IoT), which resulted in price drops of processors and sensors, are expected to encourage manufacturers to promote automation in the household sector.
• The companies based out of United States are continuously investing in new product designs. For instance, in October 2020, Google’s Nest smart home division introduced a new smart thermostat. The new Nest Thermostat is a simpler model than the Nest Learning Thermostat or Nest Thermostat E and is offered at a lower price of USD 129.99, accounting for a difference of USD 40 less than the Nest E and USD 120 less than the top-of-the-line third-generation Nest Learning Thermostat. It was made available to pre-order immediately.
• In February 2021, Aspinity announced the availability of its Acoustic Event Detection Kit (EVK1) for battery-operated, smart home devices that are always listening for acoustic triggers such as window glass breaks, voice, or other acoustic events. The kit features the company’s analogML core, a fully analog machine learning processor that promotes system power efficiency by identifying specific acoustic events before data digitization.
• Currently, the smart homes market refers to luxury projects. However, it is expected to become a requirement in all categories of housing. The educated population is increasingly migrating to urban areas in search of jobs. With the desire to own a house, in sync with the current trends, several people living in urban locations aspire for smart homes or homes that can adapt to evolving technologies. The sector is witnessing prominent growth due to its various advantages. Apart from the luxury segment, homebuyers from multiple segments are expected to begin opting for smart homes and their benefits with home automation being offered at affordable prices.

• Companies in the market have been focusing on making food recognition better and extending the same into their kitchen applications, such as full-size ovens and fridges. The majority of the trade shows across mid-2019 to early 2020 observed the presence of Bosch, GE, Samsung, and other emerging players in the smart home segment, launching concepts, such as a fridge that labels and tracks food, remote monitoring of a stovetop, and integrating AI into appliances for recommendations.
• With time, the role of a kitchen has been changing. By evolving from a mere space used for food preparation, it has grown to associate with activities, such as entertaining, socializing, dining, and working, among others. Similar changes in lifestyle have been aided by technology. For instance, appliances are being designed to have added functionality to make them easy to use. This is one of the significant drivers for the adoption and development of smart and connectable appliances. Additionally, increased interest in cooking over the years has been contributing toward the growing adoption.
• Moreover, developments in the field of using geofencing technology to determine smartphone locations to prevent leaving home without turning off an oven or receiving an alert to prevent accidental house fires are being observed. As per the New York City Fire Department, “unattended cooking” accounts for 33% of home fires on average. Moreover, it stated that the fire starter is attributed to a situation when a stove or oven is near items that can catch fire, like paper towels, or when food or grease is left in the oven.
• In September 2020, Samsung also launched a new brand campaign highlighting American family user’s experience of Samsung smart home appliances. According to the company, the market for smart small kitchen appliances is growing in the country; cooking has evolved from a necessity to a passion in the region.

• Favorable government regulations and tax credit facilities on the installation of HVAC systems and the increasing focus of end users on reducing electricity bills have significantly contributed to the growth of the smart thermostat market for the residential vertical.
• As per Project Drawdown, approximately 4%-46% of households with internet access in United States are expected to install a smart thermostat by 2050. This means that around 704 million homes would have a smart thermostat installed.
• The Emerson Sensi Touch smart thermostat was selected as the PCMag.com Readers' Choice for the best smart home thermostat and USA Today's Editors' Choice for the best overall smart thermostat in 2020. It is both ENERGY STAR certified and includes a top-rated mobile app. It provides smart alerts through the app to keep the user up-to-date on any temperature shifts or problems with the system. It also offers humidity tracking to give the user a complete picture of the home's comfort level.
• Furthermore, a majority of these builders of large, planned communities offer various smart-home products like thermostats, lights, door locks, and garage openers as either standard equipment or available options, while smart appliances and water heaters are typically available as upgrades.

The competitive landscape of the US smart homes market shows market fragmentation. Some of the global key players in this market are ABB Limited, Schneider Electric SE, Honeywell International Inc., Emerson Electric Co., Siemens AG, LG Electronics Inc., Cisco Systems Inc., Google Inc., and Microsoft Corporation. Product launch, acquisition, and partnership are some of the key strategies adopted by market players operating in the market.

Some of the recent developments are:

March 2020 - ABB launched the ABB-free@home flex to give users control over blinds and lights from a mobile device without the need for additional wiring. With its Bluetooth connection, it can easily control smart room devices to increase comfort and improve energy efficiency. In response to the increasing demand for smart home systems that allow homeowners to manage their devices in the most efficient and sustainable way, ABB has developed this solution that enables end users to ‘smarten’ up any room in their home.

March 2021 - Emerson and Ameren Missouri announced a partnership to give away Emerson’s Sensi smart thermostats to Ameren Missouri customers. Through instant discounts and participation in the Peak Time Savings program, Ameren Missouri customers will be getting Emerson’s Sensi smart thermostat at no cost other than the required sales tax. Participants can significantly save on their bills while using advanced technology that will enable them to control their thermostats from anywhere with a smartphone.

• The market estimate (ME) sheet in Excel format
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