Smart Homes Market Forecasts to 2028 – Global Analysis By Product (Lighting Control, Security Systems, Access Control System and Other Products), By Type (Proactive Software & Services and Behavioral Software & Services), By Protocols & Standards (Wired P

Smart Homes Market Forecasts to 2028 – Global Analysis By Product (Lighting Control, Security Systems, Access Control System and Other Products), By Type (Proactive Software & Services and Behavioral Software & Services), By Protocols & Standards (Wired Protocols, Hybrid Protocols and Wireless Protocols), By Sales Channel, By Application and By Geography

According to Stratistics MRC, the Global Smart Homes Market is accounted for $135.2 billion in 2022 and is expected to reach $516.8 billion by 2028 growing at a CAGR of 25.04% during the forecast period. Smart home gadgets are appropriate for a home setup where appliances may be controlled remotely from any location around the world with an Internet connection using a mobile or other networked device. Because a smart home's gadgets are all connected to the Internet, the consumer can control services like security access, temperature, lighting, and home entertainment. By enabling homeowners to operate smart gadgets, smart home technology, commonly referred to as ""home automation,"" offers them security, comfort, convenience, and energy efficiency. Either the terms ""home automation"" or ""smart homes"" may refer to a variety of monitoring, controlling, and automating methods used in a home. Smart home systems require a web portal or an application for smartphones as a user interface to communicate with an automated system, in contrast to simple home automation solutions (which could range from motorised garage doors to automated security systems).

According to the New York State Energy Research and Development Authority (NYSERDA), enabling smart technologies and real-time energy management systems can decrease costs by an average of 15% and improve the bottom line by creating an ecosystem that reduces energy waste.

Market Dynamics:

Driver:

Rise in adoption of home automated technologies

Traditional home automation systems were designed to function with an average degree of connectivity. Users could only use operating systems that were within a specific range. But the development of smart home technology is creating a whole new universe of opportunities. Connectivity is being used to give owners remote access to their properties. An estimated 175 million smart homes exist worldwide. The most recent application trend blends automation and A.I. to offer household assistance in a creative and novel technique. The most modern technological advancements ensure security and sophisticated devices. Some of the most popular security features in smart homes are video door alarms, facial recognition technology, ultra-modern burglar alarms, and remote-controlled locks.

Restraint:

Compatibility issues between devices of various companies

The market for smart homes has become very fragmented. Many players are currently developing various systems using various technologies. Devices built by the same manufacturer or vendor are simple to integrate and connect, but linking systems created by various manufacturers or vendors is laborious and may lead to unreliable services, limited functionality, and incompatibility problems. However, end consumers consequently frequently install devices that can only be managed through the manufacturer's app.

Opportunity:

Growing consumer demand for aesthetic home interiors

Consumers admire advanced smart home automation because of its effective service and attractive designs. This includes security & access control, entertainment and lighting control systems, and HVAC control systems. In the third quarter of 2021, more than 220 million smart home gadgets were shipped globally. Moreover, with 78.3 million units, the majority of them were video entertainment devices, which considerably boosted market expansion during the projection period.

Threat:

High Security threats to restrain the market expansion

The growing cyberattack in high-end connected technology is the main barrier to market expansion. All of the connected endpoints pose a security risk to smart home technology. Intelligent technology connects to every system and gadget in the house, which makes it vulnerable to hackers if not adequately protected. 80% of IoT devices are susceptible to various attacks, according to Rambus Incorporated, a designer, developer, and licensee of chip interface technology. It is apparent that connecting previously ""standalone"" smart devices like lights, appliances, and locks raises many new cyber security issues. Parents who were alarmed to learn that hackers were able to contact their young children through a hacked device discovered that even connected baby monitors are susceptible to digital invasions.

Covid-19 Impact:

Industries shut down, and manufacturing was impacted by the COVID-19 pandemic. Due to the rapid closure of international and nation-wide borders, which caused damage and lost revenue, the pandemic interrupted operational efficiency and had an impact on value chains. Existing smart products like TVs and refrigerators continued to be in demand because they helped customers who were compelled to stay at home with their entertainment and convenience needs. The availability of raw materials was negatively impacted by the value chain, which had an adverse effect on the growth of the smart home industry. Moreover, due to factors including more companies entering the market and a greater proportion of online and internet sales, the industry has grown to include a wide range of midrange and entry-level, low-cost home automation products.

The smart kitchen segment is expected to be the largest during the forecast period

Due to rising customer preference for modular kitchens and rising disposable income in developing nations, the smart kitchen segment is anticipated to have the largest share over the estimated period. The value of a smart kitchen has increased as a result of lifestyle changes and an increase in time spent outside of the home. Additionally, as the number of internet, smartphone, and tablet users increases, it has become simpler for customers to monitor their appliances using mobile devices, which is particularly tempting to people who lead hectic lives.

The proactive software and services segment is expected to have the highest CAGR during the forecast period

Over the anticipated period, proactive software and services segment are anticipated to increase profitably since they make it simpler to transmit data on energy consumption to end users and execute the best potential solutions. Compared to behavioural versions, proactive software and services allow for the transfer of a larger volume of data; they can also give end users input on efficient energy use and directions on how to change physical elements, like the temperature and humidity of the environment, to save energy.

Region with largest share:

Due to rising consumer security concerns spurred on by the availability of technologically sophisticated monitoring systems, the North American region held the largest share over the extrapolated period. However, nearly 30 million US households are expected to install smart home equipment in the near future, signalling the growing popularity of smart homes. Additionally, consumers are most interested in adding linked cameras to their homes, followed by video doorbells, connected light bulbs, smart locks, and smart speakers.

Region with highest CAGR:

Owing to increasing demand for automation solutions from residential applications, Asia Pacific is anticipated to expand at the highest CAGR throughout the projection period. The leading firms in the area are concentrating on collaborating with other well-known businesses to develop and market cutting-edge smart home products. Furthermore, the market's expansion is due to the area's growing standard of living and greater disposable income. Additionally, the rapid adoption of smartphones, the internet, and other cutting-edge technologies is expected to propel the region's market.

Key players in the market

Some of the key players in Smart Homes market include Shenzhen Zhuohao Intelligent Electronic Development Co. Ltd (ACTOP), Control4 Corporation, Smarthome Inc., United Technologies Corporation, Lutron Electronics Co. Inc., Legrand SA, IBM Corporation, General Electric Company, Microsoft Corporation, Google Inc., Cisco Systems Inc., LG Electronics Inc., Siemens AG, Emerson Electric Co., Honeywell International Inc., Schneider Electric SE, ABB Ltd, Johnson Controls, Inc., Samsung Group and Ingersoll Rand.

Key Developments:

In January 2023, giant tech company Apple announced to step into the smart home application market. Apple is developing a smart display for the home that includes a magnetic wall attachment and can be used to adjust the thermostat and turn on and off lighting.

In January 2023, Amazon announced support for the new global wireless smart home standard, Matter, which aims to make your connected life simpler.

In January 2023, Eve Systems, a manufacturer of smart home accessories, announced the release of its products with Matter compatibility built in. Eve Energy smart plug, Eve Motion and Eve Door and Window sensors are a few products among them. The new Eve accessories are compatible with Apple HomeKit, Amazon Alexa, Google Home, and Samsung SmartThings, and all three will be shipped to the US in March 2023.

In January 2023, Samsung Electronics unveiled Smart Things Station, a cheap and user-friendly hub for smart homes that also doubles as a fast-charging station. The new, user-friendly smart home hub enables easy interoperability and control of numerous connected devices. Samsung's SmartThings Find, a fast-expanding asset tracking service, is also connected with SmartThings Station. Users can use it to locate lost gadgets.

In 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.

In January 2021, Samsung launched large-capacity Variable Refrigerant Flow (VRF) air conditioning systems in India that can be installed in just 0.5 sq. m of space in premium apartments, villas, bungalows, and houses as commercial and retail establishments. The Wi-Fi-enabled DVM S Eco series offers smart features, such as voice control and a connected home experience, using the SmartThings app on any smartphone.

Products Covered:
• Lighting Control
• Security Systems
• Access Control System
• HVAC Control
• Entertainment and Other Controls
• Home Healthcare
• Smart Speaker
• Smart Kitchen
• Smart Furniture
• Home Appliances
• Smart Appliances
• Healthcare Services
• Security Services
• Energy Consumption & Management Services
• Smart Laundry
• Other Products

Types Covered:
• Proactive Software & Services
• Behavioral Software & Services

Protocols & Standards Covered:
• Wired Protocols
• Hybrid Protocols
• Wireless Protocols

Sales Channels Covered:
• Indirect Sales Channel
• Direct Sales Channel
• Mono Brands
• Department Stores
• Online Retailers
• Supermarkets & Hypermarkets
• Speciality Stores
• Other Sales Channels

Applications Covered:
• Retrofit
• New Construction
• Other Applications

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