The global smart home market predicted to grow from USD 80.5 billion in 2020 to USD 145.5 billion by 2027, at a CAGR 13.6% during the forecast period 2020-2027, owing to the upsurge in income levels across the world. The global smart home market will bolster by the growth in demand because of the security measures, entertainment, and authentication and low carbon emission-oriented solution. The smart home market is growing due to urbanization, and people want everything to be done by automation and in a centralized manner where they can control everything through sensors or remote controllers. In different regions across the globe, smart home devices are growing because of the increasing demand for smartphones and gadgets, which helps in accessing and controlling devices and provide entertainment as well.
COVID-19 impact on the smart home market
The COVID-19 pandemic has seriously affected the smart home market globally. Worldwide sales are expected to decrease by 10-12% in this year, depending on the spread of the corona virus and its cases.
Smart home market growth aspects
Moreover, increasing crime rates and concerns about home security increase the smart home demand in the global market. The growing demand in the future of smart home devices will grow more because of the rise in the income level, the standard of living, urbanization, and increasing population. China and Japan are among the potential countries for the higher growth of the smart home market due to the growth in the large-scale implementation of hardware and software solutions across these countries. The smart home devices have a vast market of various products, such as lighting controls, HVAC controls, security, and access controls, among others.
Further, adoption in the smart home for entertainment controls helps in boosting the growth of the market for the home theatre system. The increase in the smart home market can attributed to the surge in demand for smart home products, including smart meters and smoke detectors. Additionally, the growing cost of electricity expected to drive household consumers toward energy savings. Moreover, the increase in demand for smart plugs, smart hubs, and smart locks will fuel the global smart home in the upcoming year.
Product Type Overview in the smart home market
Based on Product Type, the global smart home market categorized into Lighting Control, Home Appliances, Security & Access Control, Entertainment, HVAC, Smart Speaker, Home Healthcare, Smart Kitchen, Smart Furniture Products, and others. Home appliances segment expected to dominate the global smart home market owing to the rise in the urban population coupled with the increase in demand for monitoring, controlling, and automating functions in a home.
Deployment Overview in the smart home market
Based on deployment, the global smart home market bifurcated into software and services. The software segment estimated to dominate the market, owing to the Internet of things (IoT) which, increases the connection between machine to machine solutions. There are two types of software and services- behavioral and proactive. The behavioral type software and services analyze energy-related data and then forward it to the end-users. The segment restricts only to transmitting and receiving data and, like the proactive type, does not perform intelligent actions. Behavioral type solutions provide direct feedback to end-users and provide essential information related to historical data reflecting energy usage and real-time energy data. Therefore, behavioral type software and services held the largest share in 2019.
Regional Insights Overview in the smart home market
Based on the region, the global smart home market segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. The Asia Pacific anticipated generating maximum revenue in the global smart home market owing to high spending on smart home devices along with increasing environmental concern regarding carbon emission-oriented solutions.
Global smart home market: Competitive Landscape
Companies such as ADT, Robert Bosch GmbH, ASSA ABLOY, ABB Ltd., Ingersoll-Rand PLC, ABB, S.A., GE, Comcast Corp. are the key players in the global smart home market.