Growing Need for Energy-Saving and Low Carbon Emission-Oriented Solution to Drive the Growth of the Global Smart Home Market: MRFR

Market Research Future (MRFR) will be publishing a cooked research report on the “Global Smart Home Market” that contains information from 2024-2032. 

MRFR recognizes the following companies as the key players in the global smart home market—Honeywell International (US), Johnson Controls (Ireland), Siemens AG (Germany), Schneider Electric (France), UTC (US), Google LLC (US), Amazon (US), Apple Inc.(US), ADT Inc.(US), Assa Abloy (Sweden), Dahua Technology (China), ABB Ltd (Switzerland), Robert Bosch (Germany), Axis Communication (Sweden), Samsung Electronics (South Korea), Panasonic Corporation (Japan), Legrand SA (France), CP Plus Inc.(India), Hangzhou Hikvision Digital Technology Co., Ltd (China), and General Electric (US).

Market Highlights

The global smart home market is projected to be valued at USD 285.4 Billion by the end of 2032, registering a CAGR of over 10.69% during the forecast period.

The global smart home market comprises various component manufacturers, government research firms, universities, and technical institutes that develop and invest in advancements in the automation industry. The latest technological developments and the introduction of IoT technology have led to the development of smart homes. In smart homes, every electronic device is connected to each other over a network. In smart homes, operations are less complex and automated, resulting in reduced energy consumption.

The primary factor driving the global smart home market is its growing need for energy saving and low carbon emission-oriented solutions. Climate change fuels the demand for energy efficiency in residential and commercial complexes for space heating and cooling, water heating, temperature control, and lighting. Energy consumption is higher in the building in industrialized countries, and the importance of energy-efficient buildings is significant in developing countries, which drives the market's growth. Many enterprises are focused on implementing technologies for more efficient heating, air conditioning, and lighting, enabling buildings to use less energy and further reducing greenhouse gas emissions.

Furthermore, in industrialized countries, factors such as government policies for smart buildings, codes for energy efficiency in new construction plans, and compliance with energy-efficient standards in various industries increase the adoption of energy-efficient buildings. Thus, the growing need for energy-saving and low carbon emission-oriented solutions is expected to drive the growth of the global smart home market during the forecast period.

COVID-19 Impact Analysis

The COVID-19 is creating economic hardship for enterprises, consumers, and commodities across the globe. The first quarter of the year 2020 did not witness any shortages or delays that could affect the sales or shipments to customers. However, the period also witnessed several governmental and commercial impacts, including business slowdowns or shutdowns and significant travel restrictions. These events led to a considerable decline in both global economic activity and financial market valuations. As a result, the company’s manufacturing smart devices have witnessed operational disruption and adversely impacted customer demand primarily in the Asia-Pacific.

Segment Analysis

The global smart home market has been segmented on the basis of component and region.

By component, the smart home market has been segmented into hardware, smart appliance, AI speaker, and services. The hardware segment accounted for the largest market share in 2018 and is estimated to register a CAGR of 15.3% during the review period. The hardware of any smart home device is responsible for sense, process data, and communicate wirelessly. It combines all disparate apps into a single smart home app that can be controlled remotely by home owners. The hardware segment of the global smart home market is segmented based on security, home automation, home entertainment, and home healthcare.

The hardware segment is furthersub-categorized into security, home automation, home entertainment, and home healthcare. The demand for security is increasing since the devices are interconnected in a network, the privacy of data becomes an utmost concern to the manufacturers of smart home devices.

Key Findings of the Study:

• The smart home market is projected to reach a value of USD 112.8 Billion by 2023, with a CAGR of over 12.3% during the forecast period from 2023-2032.


• North America accounted for the largest market share in 2019; this can be attributed to the growing awareness for safety, security, energy & water management and reduction in maintenance costs among the masses.


• Europe is expected to be the second-fastest-growing regional market registering a CAGR of over 15.2%.


• Asia-Pacificis likely to register significant growth due to the growing adoption of smart building technologies to automate processes and manage day-to-day building management operations, including lighting, air conditioning, lift management, and heating, thereby improving efficiency.


• Favorable government regulations regarding green building initiatives are likely to be a key growth opportunity for the playersin this market.