Smart Home Market size by Product (Lighting Control, Security & Access Control, HVAC Control, Smart Speaker, Smart Kitchen and Smart Furniture), Software and Services, Sales Channel and Region - Global Forecast to 2028

Smart Home Market size by Product (Lighting Control, Security & Access Control, HVAC Control, Smart Speaker, Smart Kitchen and Smart Furniture), Software and Services, Sales Channel and Region - Global Forecast to 2028

The smart home market size is valued at USD 101.7 Billion in 2023 and is anticipated to be USD 163.7 Billion by 2028; growing at a CAGR of 10.0% from 2023 to 2028. Factors such as the Expansion of smart home product portfolio by large number of players, and Growing concern about safety, security, and convenience among general population are driving the growth of the market during the forecast period.

Expansion of smart home product portfolios by large number of players

The smart home industry involves a wide range of manufacturers worldwide, including those who produce components, devices, systems, software algorithms, and service providers. Tech giants such as Samsung, Amazon, Google, and Apple have introduced innovative products like SmartThings, Echo, Home, and HomeKit for the smart home market. In January 2023, Apple launched HomePod Gen 2, which allows users to monitor temperature, humidity, establish smart home automation with Siri, and receive notifications during the detection of smoke alarm. Due to the convenience, energy efficiency, and cost-saving benefits offered by home automation solutions, homeowners are adopting them on a large scale. Lighting control, HVAC controls, and security and access products have a high penetration rate in North America and Europe. As a result, manufacturers of smart home products are expanding their portfolios to cover different application areas in a household.

Growing adoption of smart devices and increasing number of internet users

The Internet of Things (IoT) has become increasingly popular among residential consumers due to its ability to connect household products to the internet and provide real-time data and decision-making capabilities. As a result, companies of all sizes are investing heavily in the IoT industry, and it is expected to be applied in a wide range of areas such as lighting, security, healthcare, and entertainment. The growth of the smart home market is driven by the increasing adoption of video doorbells, voice-assisted technologies like Alexa and Google Home, and surveillance systems. The widespread adoption of internet-enabled devices such as RFID, barcode scanners, and mobile computers, which is being driven by the growing number of internet users worldwide, is expected to further boost the IoT market. The penetration rate of the internet has increased significantly in the past decade, especially in developed regions such as according to Internet World Stats as of June 2022, North America and Europe, registered penetration rates of 93.4% and 89.2% respectively, while Asia and Africa registered penetration rates of 67.0% and 43.2% respectively.

Asia Pacific is the fastest-growing region in the smart home market

There is an significant market for smart homes in Asia Pacific, specifically in countries like Japan, South Korea, and China. Among these countries, South Korea has become a significant market for smart home systems due to the high demand for lighting and entertainment controls. China, with its rapidly growing economy and population, is investing heavily in energy-efficient technologies. Meanwhile, South Korea is also a major player in the smart home market for household appliances. Furthermore, the high rate of internet usage in Japanese households is expected to drive the growth of the smart home industry in the Asia Pacific region.

The breakup of primaries conducted during the study is depicted below:

By Company Type: Tier 1 – 40 %, Tier 2 – 40%, and Tier 3 –20%

By Designation: C-Level Executives – 40%, Directors – 40%, and Others – 20%

By Region: North America– 40%, Europe – 20%, Asia Pacific – 30%, Rest of world– 10%

Research Coverage

The report segments the smart home market and forecasts its size, by value, based on region (North America, Europe, Asia Pacific, and RoW), product (lighting control, security & access control, HVAC control, entertainment & other controls, smart speaker, home healthcare, smart kitchen, home appliances, and smart furniture), software & service (behavioral, and proactive), and sales channel (direct sales,and indirect sales). The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the smart home market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.

Reason to buy Report

The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall smart home market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (Increasing importance of home monitoring in remote locations, Growing concerns about safety, security, and convenience among general population), restraints (High cost of switching for existing smart device consumers, Issues related to breach in security and privacy breaches), opportunities (Favorable government regulations to promote green buildings, Incorporation of lighting controllers with in-built data-connectivity technology), and challenges (Difficulties linking disparate systems, limited functionality, and lack of open standards) influencing the growth of the smart home market

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the smart home market

Market Development: Comprehensive information about lucrative markets – the report analyses the smart home market across varied regions

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the smart home market

Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Honeywell (US), Siemens (Germany), Johnson Controls (Ireland), Schneider Electric (France), and ASSA ABLOY (Sweden), among others in the smart home market