Home Automation System Market Size

Global Home Automation System Market Overview:

Home Automation System Market Size was valued at USD 67973.9 million in 2023. The Home Automation System industry is projected to grow from USD 70865.9 million in 2024 to USD 98900.0 million by 2032, exhibiting a compound annual growth rate (CAGR) of 4.3% during the forecast period (2024 - 2032). Consumer Interest in Smart Home Technology is Growing, and technology development is the key market driver enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Home Automation System Market Trends

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  Rising government initiatives for smart city technology and rising consumer awareness of smart homes will boost the market growth

  
  

One of the main factors influencing the adoption of home automation systems is the rise in homeownership. The vast majority of people who purchase new homes are millennials. In the U.S., millennials made up 38% of all home purchasers in March 2020, according to the National Association of REALTORS. Additionally, millennials are the demographic that invests the most in home automation technology. As a result, this population segment has a very high acceptance rate for home automation systems. Home automation systems are widely used in houses in these areas. Technological improvements and growing public awareness of the advantages of smart home technology have increased the functionality of security systems, allowing for more flexibility and convenience while also enhancing customer safety. The purchasing of home automation systems is anticipated to be constrained by the need for more homeownership among generation Z purchasers. This group is spending money on do-it-yourself, inexpensive Home Automation System solutions.

Figure 1: Number of Listed REITs (1990-2021)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Growing Consumer Interest in Smart Home Technology Will Fuel the Home Automation System Expansion Market. Across many industries, smart technology is expanding exponentially. The home automation system is being explored and transformed in important ways by smart property technologies. Automation was formerly understood to mean operating equipment and appliances over internet networks. Automation is becoming smarter, though, due to the development of smart technology, including self-diagnosing gadgets, smart security, smart entertainment, sophisticated self-health care, and smart kitchens, among others. The use of smart devices to integrate cutting-edge technologies like artificial intelligence, machine learning, and the internet of things (IoT) to increase automation capabilities. Nearly 87.7 million Americans were using smart speakers in January 2020, according to a Voicebot.ai poll. Users' preferences are shifting in favor of automating tasks using voice commands, as seen by the sharp increase in smart speaker use. Similar to this, it is anticipated that the growth of the property automation market will be fueled by the increasing adoption of smart lodging functionalities such as smart T.V., light automation, face recognition doorbells, smart cookware, smart nursery, automated sprinklers, video monitoring, and more. Therefore, such factors drive the Home Automation System market revenue growth.

Home Automation System Market Segment Insights:

Home Automation System Protocol & Technology Insights

The Home Automation System market segmentation, based on Protocol & technology, includes Network and wireless. Wireless technology is expected to expand quickly during the projected period and capture the largest revenue share in Home Automation Systems. Its open technology allows for customization and supports numerous running devices at once. Wireless network connections are now a wiser choice for controlling smart property systems. Among other items, wireless networks are used by the Google Home Hub, Samsung Smart Things, and Apple HomeKit. Consequently, this element is causing the Home Automation System to flourish.

Home Automation System Product Insights

The Home Automation System market segmentation, based on Product, includes Lighting, Security and Access Control, HVAC and Entertainment Control. In 2021, the security and safety category had the lion's share in Home Automation Systems. Security and safety systems are anticipated to be driven by the rising number of smart cameras, doorbells, smoke/gas detectors, theft alarms, and more. Similarly, the demand for HVAC is rising since it provides sophisticated temperature monitoring and energy-saving options. As more lighting suppliers currently join the Home Automation System with cutting-edge lighting applications, smart lighting is predicted to have stable Home Automation System market expansion over the projection period. Additionally, as work lives become more hectic, customers' need for smart appliances is expanding will be the reason for the growth of the home automation system industry.

Figure 2: Home Automation system, by Product, 2021 & 2030 (USD Million)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Home Automation System Software & Algorithm Insights

The home automation system market segmentation, based on Software & algorithms, includes Behavioural and Proactive. In 2021, the proactive sector had the bulk of the market. The end users of proactive Software and algorithms receive data on energy use and a greater sense of responsibility for the actions that should be taken in response to the information received. This kind may transport more data than a behavioral system. It offers the end user suggestions for efficient energy consumption, behavior, and personal preferences. The proactive type's algorithms can also compare consumption trends depending on the day of the week, previous data, and weather conditions. Therefore, such factors drive the growth of the market of Home Automation Systems.

Home Automation System Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Home, Automation System market accounted for USD 28.16 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. North America Home Automation System Market has become a dominant region. The need for smart technology is driven by the Region's propensity for cutting-edge technologies like artificial intelligence and the internet of things, as well as more disposable income. Numerous firms, including Boca Raton, Sense, and CUJO AI, are growing in the area and helping the market. According to the Berg Insight research, the installation of smart property systems grew by 28.5% in North America in 2019.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: HOME AUTOMATION SYSTEM MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Due to rising investments in smart technologies, Asia Home Automation System Market is anticipated to have substantial expansion throughout the forecast period. Due to the predominant presence of important smart device makers, China will likely control the Region's share. Due to the rising need for automated solutions, the India Home Automation System market would have a high CAGR throughout the projection period. For instance, in April 2021, Schneider Electric worked with India-based house renovator Livspace in light of the rising customer demand and to provide easy access to home solutions. Due to increased security concerns, the rapid growth of the flat residential culture driving up demand for advanced security systems, and other factors, the China Home Automation System Market is developing at the quickest rate along with India Home Automation System Market, with a CAGR of 29.1% in the worldwide home automation market.

Regarding market domination, European Home Automation System Market has lesser market penetration. Over time, the Region has seen a tremendous increase in powerful market participants. The implementation of smart lodging technology in European nations is included in various government plans due to its sustainable environmental effect and energy-efficient solution. Further, the Germany Home Automation System market held the largest market share, and the U.K. Home Automation System market was the fastest-growing market in the European Region.

Home Automation System Key Market Players & Competitive Insights

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the home automation system industry. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. Home automation system industry competitors must provide affordable products if they want to grow and thrive in a field that is becoming more and more competitive.

Manufacturing locally to cut operating costs is one of the main business tactics used by manufacturers in the home automation system industry to benefit customers and develop the market sector. In recent years, home automation systems have brought some of the biggest advantages to medicine. The Home Automation System market major player such as Honeywell International Inc. (U.S.), Acuity Brands, Inc. (U.S.), Johnson Controls Inc. (U.S.), United Technologies Corporation (U.S.), Crestron Electronics, Inc. (U.S.), Legrand (France), Schneider Electric Se (France), Abb Ltd. (Switzerland), Samsung Electronics Co., Ltd. (South Korea), Siemens Ag (Germany), Savant Systems Llc. (U.S.), and others are working on expanding the market demand by investing in research and development activities.

Legrand is a French manufacturing company with roots in the Limousin region's Limoges. It is a leader in linked solutions for electrical and digital building infrastructures. Focal Point (US), a manufacturer of architectural lighting for non-residential buildings, was purchased by Legrand in February 2020. Legrand's position as the industry leader in lighting control solutions for both residential and commercial product offerings in the U.S. will be strengthened by this purchase.

With its headquarters in Munich and branch offices worldwide, Siemens AG is a German multinational conglomerate business and the biggest industrial manufacturing enterprise in Europe. The U.S. firm Pixeom will be acquired by Siemens, the German industrial juggernaut, for an unknown price to boost its industrial automation, digitalization division, and smart home automation.

Key Companies in the Home Automation System market include

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  Honeywell International Inc. (U.S.)

  
  


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  Acuity Brands, Inc. (U.S.)

  
  


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  Johnson Controls Inc. (U.S.)

  
  


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  United Technologies Corporation (U.S.)

  
  


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  Crestron Electronics, Inc. (U.S.)

  
  


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  Legrand (France)

  
  


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  Schneider Electric Se (France)

  
  


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  Abb Ltd. (Switzerland)

  
  


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  Samsung Electronics Co., Ltd. (South Korea)

  
  


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  Siemens Ag (Germany)

  
  


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  Savant Systems Llc. (Us)

  
  


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  Control4 Corporation (Us)

  
  


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  Amx Llc (Us)

  
  


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  Creston Electronics Inc. (Us)

  
  

• March 2024- A leading IoT company situated in Gandhinagar, Gujarat, Y5home Technologies, is transforming the way they connect with their surroundings with its innovative home and building automation system. Since its inception in 2013, Y5home has been in the lead in offering cost-effective, next-generation IoT solutions, simplifying and protecting their businesses and homes. With a goal to redefine quality standards and offer extraordinary customer service, Y5home rapidly gained the respect and trust of consumers, partner vendors, and suppliers. Y5home's flagship brand, Y5home, offers a complete suite of solutions for remote control, security, monitoring, and management of electrical appliances, both remotely and locally. From security solutions such as Video Doorbell Cameras and Digital Doorlocks to lighting solutions such as RGB + CCT lighting and smart digital touch switches, Y5home offers high-quality, user-friendly products with an attractive aesthetic. Y5home, administered by a group of highly skilled individuals with a love for technology, is devoted to incorporating technological innovation with human activities to strengthen convenience and lower human effort. With a long-term motive of changing nearly 100,000 houses across the globe into smart homes by 2026, Y5home is dynamically looking for high-quality professional channel partners from all around the globe, including India. At present, making waves in the North American and Indian markets, Y5home has lately disclosed plans to grow its operations into the United States and Canada, setting its position as one of India's leading smart home automation brands.


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  February 2024- Keus Smart Home, a Smart home automation startup, has raised INR 100 Cr ($12 Mn) in a funding round guided by mid-market private equity firm OAKS Asset Management. While OAKS' Consumer Fund caused the combination with INR 80 Cr, the company's founders, Subram Kapoor, and Brijesh Chandwani, participated in the round for the balance amount. Keus Smart Home, based in Hyderabad, plans to use the fresh capital to initiate its experience centers across cities like Pune, Mumbai, Bengaluru, and Delhi NCR, which are growing in tier I and II cities and empowering its market leadership in Hyderabad. 

  
  


• January 2023: In the Consumer Electronics Show (CES), Shelly, a branch of Allterco Robotics, Ltd., unveiled 8 new smart home automation products. One of the most rapidly expanding IoT companies in the world, Shelly has updated its products with enhanced functionality while maintaining its key advantages of cost, interoperability, energy efficiency, accessibility, and simplicity of installation. The eight new Shelly products include smart home automation options in the Shelly Pro & Plus series, which provide cutting-edge and clever features for both professional installers and do-it-yourself homeowners. The firm also added new, unparalleled functionality to all of the devices from the Plus and Pro series, as part of their commitment to remain at the forefront of smart home advancements.

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  April 2023: On Sanlorenzo's SP110 Almax, Videoworks adds home automation and entertainment systems. Experts in lighting and entertainment systems A videoworks installation has been finished aboard the brand-new Sanlorenzo SP110 Almax superyacht. With 25 years of experience, Videoworks has installed a huge number of cutting-edge audio & video, entertainment, IT, lighting, and comfort systems aboard superyachts all over the world. An even higher level of comfort on board may be ensured for owners and their guests thanks to Sanlorenzo's efforts in macro areas like internet connectivity at every latitude and artificial intelligence.

  
  


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  April 2023: One of the leading companies in home automation in the nation, iPlug Control System Pvt. Ltd., has established India's first Experience Centre at the well-liked Xion Mall in Hinjewadi, Pune, in May 2023, showcasing their first-in-line automation-centric lifestyle goods. With the opening of the Experience Centre, India's first and only centre for technology-driven experiences, consumers will soon be able to have a firsthand look at the extraordinary tech-powered daily life before making a purchase. The company's inventory includes, mentioning a few items that are intended to transform daily life into a futuristic one, Smart Door Locks, Home Security & Sensors, Smart CCTV Cameras, Smart Watches, Headphones, Touch Switches, and Bluetooth Speakers.

  
  


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  April 2021: The Horizon Thermostat, a touch-screen smart thermostat with a two-wire retrofit design, was introduced by Crestron Electronics. Its interaction with the Crestron Home platform provides smart automation features, including the best lighting effects for comfort, appropriateness, and energy savings.

  
  

Home Automation System Market Segmentation:

Home Automation System Protocol & Technology Outlook

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  Network

  
  


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  Wireless

  
  

Home Automation System Product Outlook

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  Lighting

  
  


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  Security and Access Control

  
  


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  HVAC

  
  


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  Entertainment Control

  
  

Home Automation System Software & Algorithm Outlook

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  Behavioural

  
  


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  Proactive

  
  

Home Automation System Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

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  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America