Home Automation Market Forecasts to 2028 – Global Analysis By Type (Managed Home Automation System, Mainstream Home Automation System, DIY (Do It Yourself) Home Automation System and Luxury Home Automation System), Product (HVAC Control, Lighting Control,

Home Automation Market Forecasts to 2028 – Global Analysis By Type (Managed Home Automation System, Mainstream Home Automation System, DIY (Do It Yourself) Home Automation System and Luxury Home Automation System), Product (HVAC Control, Lighting Control, Security and Access Control and Entertainment and Other Controls), Networking Technology (Computing Home Automation System, Wired Home Automation System, Wireless Home Automation System and Other Networking Technologies), End User and By Geography

According to Stratistics MRC, the Global Home Automation Market is accounted for $64.66 billion in 2022 and is expected to reach $302.15 billion by 2028 growing at a CAGR of 29.3% during the forecast period. Home automation provides high-end solutions and makes use of advanced digital technology to make the operation of various home appliances more convenient. It improves efficiency and performance when it comes to automating home or household operations. Home automation entails the automatic control of all electronic gadgets in the home or even remotely via wireless communication. Home automation makes life easier and can save money on heating, cooling, and power costs. Home automation can also lead to increased security through the use of Internet of Things devices such as security cameras and systems.

According to the National Association of REALTORS, millennials in the US accounted for the largest share of home buyers at 38% in March 2020.

Market Dynamics:

Driver:

Growing home ownership among millennials worldwide

Growing homeownership is one of the key factors driving the use of home automation systems. Millennials make up the vast majority of new house buyers. Furthermore, millennials are the most likely to invest in home automation systems. As a result, adoption of home automation systems is substantially higher among this population category. Growing customer awareness of the benefits of smart home technologies, as well as technological improvements, have increased the functionality of security systems, enabling greater flexibility and convenience, as well as improved consumer safety.

Restraint:

Expensive products and limited clarity regarding technology

Automation equipment, tools, and appliances are costly. Users with little disposable income may struggle to understand the automation solution and its necessity. Due to the high cost, it is being accepted by specific market segments. In addition, smart gadget pricing are now on the higher end of the market. Furthermore, this cost barrier is predicted to be seen in underdeveloped countries rather than advanced countries. This is likely to prevent widespread adoption. Similarly, these users are unsure of its application, usage, and overall benefits.

Opportunity:

Rapid urbanization in developing countries

Emerging nations are also witnessing rapid urbanization with the development of smart cities. The concentration of housing construction in cities has resulted in an increasing demand for enhanced housing infrastructure in emerging economies. This would eventually lead to the installation of home automation systems in newly developed, modern housing projects. Thus, the expansion of housing infrastructure would increase demand for smart HVAC controls, smart lighting, and smart locks, particularly in technologically advanced countries such as India, China, and Brazil.

Threat:

Growing security concerns with home automation devices

Buyers are getting more concerned about cybersecurity as the number of IoT-based home automation solutions grows. This has major consequences for home security system buyers. The severity of a security breach grows for crucial home automation devices such as smart locks and smart cameras. Home automation can be vulnerable to security breaches owing to flaws in the product itself or an insecure wireless connection linking the home automation devices.

Covid-19 Impact

The home automation sector was limited during the COVID-19 epidemic owing to logistical service regulations. However, with increased knowledge and adoption of the concept of smart homes and home automation, there is a considerable growth in demand for smart houses operated with home automation. Stay-at-home limitations imposed to combat viral transmission pushed up market demand gradually. According to market experts, this has increased demand for efficient home energy-saving smart gadgets to monitor energy consumption and save utility bills.

The entertainment and other controls segment is expected to be the largest during the forecast period

The entertainment and other controls segment is estimated to have a lucrative growth. It has the capacity to control our TV and video sources. This can be attributed to the growing number of options accessible on the market, such as Google Home, Amazon Echo, and so on, as well as users' willingness to purchase them. One may conveniently operate the TV of their choice, as well as select and manage the material playing on that TV, using the smart application. It can control as many TVs and video sources as there are in the house.

The wireless home automation system segment is expected to have the highest CAGR during the forecast period

The wireless home automation system segment is anticipated to witness the highest CAGR growth during the forecast period, due to the rise in demand for wireless home automation systems and the efficiency of setting them up and using them. Its open technology allows for customisation and may run many devices at the same time. Wireless network connections are now more intelligent solutions for managing smart property systems. Google Home Hub, Samsung Smart Things, and Apple Homekit are some of the items that work on wireless networks.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to the accelerated adoption of newer technology by the masses in the region and the higher level of disposable income. Companies in this region are constantly active in mergers and acquisitions (M&A) to expand home automation solutions. Increasing technical improvements and improved internet connectivity are driving the Home Automation Market in this region. Furthermore, efforts made by the government and private players in research and development of novel products are expected to feed the market even further.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to increasing investment in smart technologies. Innovative technologies, such as voice-controlled smart home devices and increased internet penetration, which enables linked home automation, are driving market expansion in this region. China is expected to dominate the region's share due to the dominance of key smart device makers. Due to rising demand for automated solutions, India is likely to grow at a high CAGR during the forecast period.

Key players in the market

Some of the key players profiled in the Home Automation Market include Samsung Electronics Co., Ltd., ABB, Schneider Electric, Siemens, Johnson Controls, Control4, Crestron Electronics, Inc., Leviton Manufacturing Company, Resideo, Legrand, Honeywell International, Inc. and ADT Inc.

Key Developments:

In October 2020, Resideo (US) announced the launch of the Honeywell Home ProSeries Security and Smart Home Platform. The ProSeries Platform, which ranges from an entry-level security system to a fully integrated smart home solution, provides dealers who serve residential and small businesses with a complete, end-to-end solution and increases Resideo’s overall portfolio of linked security systems and services.

In February 2020, Legrand acquired Focal Point (US), a producer of architectural lighting for non-residential buildings. This acquisition will reinforce Legrand’s position as the market leader in lighting control solutions for both residential and commercial product offerings in the United States.

Types Covered:
• Managed Home Automation System
• Mainstream Home Automation System
• DIY (Do It Yourself) Home Automation System
• Luxury Home Automation System

Products Covered:
• HVAC Control
• Lighting Control
• Security and Access Control
• Entertainment and Other Controls

Networking Technologies Covered:
• Computing Home Automation System
• Wired Home Automation System
• Wireless Home Automation System
• Other Networking Technologies

End Users Covered:
• Commercial
• Residential

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements