Smart Home Automation Market Size - By Product (Hardware {Lighting Control, Security & Access, HVAC Control, Entertainment Control & Others}, Services), By Technology (Wired, Wireless), By Fitment (New Construction, Retrofit) & Global Forecast, 2023 - 203

Smart Home Automation Market Size - By Product (Hardware {Lighting Control, Security & Access, HVAC Control, Entertainment Control & Others}, Services), By Technology (Wired, Wireless), By Fitment (New Construction, Retrofit) & Global Forecast, 2023 - 2032

Global Smart Home Automation Market size will expand substantially through 2032. Growing investment by the government in the smart city concept will create a notable impetus for industry growth. Many governments across the globe are working on accelerating renewable energy adoption to expand the smart building infrastructure while promoting smart home automation. Moreover, rising per capita income has increased consumer spending on more sustainable home automation systems, favoring market growth in the long run.

The overall smart home automation market is divided based on product, technology, fitment, and region.

Based on the product, the market value from the services segment will register significant growth through 2032. Growing demand for professional smart home automation services is leading to segment growth. Professional home automation services offer customization options to meet the specific requirements of homeowners. These services ensure that the installed system is future-proofed and scalable. They keep up with the latest advancements and technologies, ensuring compatibility and integration with future devices and platforms, resulting in increased product uptake.

Based on technology, industry share from the wired segment will grow at over 10.5% CAGR from 2023 to 2032. Surging advancements in wired technology are presenting lucrative opportunities for smart home automation industry. Advanced encryption protocols for Wi-Fi networks and secure communication protocols like TLS (Transport Layer Security) now safeguard data transmissions between devices and prevent unauthorized access. Additionally, modern wired smart home systems seamlessly integrate with home automation controllers or hubs, allowing homeowners to control and manage all connected devices from a single interface.

Regarding fitment, the industry size from the new construction segment will reach over USD 75 billion by 2032. Surging construction activities globally have increased the demand for smart home automation. Moreover, growing awareness about energy efficiency has further propelled the integration of smart home technology in new structures. Many governments worldwide are offering subsidies and incentives for promoting the installation of energy-efficient smart home appliances, which will drive market growth through 2032.

From the regional perspective, Europe smart home automation market share will grow at a significant CAGR from 2023 to 2032. Rapid adoption of smart home technologies in aging infrastructure is contributing to regional growth. The region is also home to major industry giants such as Legrand SA and others constantly focusing on product innovations. Moreover, the high availability of affordable smart home devices is further working in favor of regional growth.