Global Smart Home Automated Building Market Overview
As per MRFR analysis, the Smart Home Automated Building Market Size was estimated at 27.15 (USD Billion) in 2022. The Smart Home Automated Building Market Industry is expected to grow from 34.18 (USD Billion) in 2023 to 271.8 (USD Billion) by 2032. The Smart Home Automated Building Market CAGR (growth rate) is expected to be around 25.91% during the forecast period (2024 - 2032).
Key Smart Home Automated Building Market Trends Highlighted
Key Market Drivers: The expansion of the smart home automated building market receives support from reasons like, increasing urbanization, increasing level of disposable income, as well as increasing concern towards energy saving and convenience. The inclusion of other advanced technologies like IoT, AI, and machine learning creates a perfect distinction between the smart devices installed in the house, which enhances the level of comfort, safety, and accessibility of the devices remotely. Opportunities: Smart home automation is creating market space for the players to explore. The level of requirement for the availed solutions concerning the clients is getting better as demand for specific preferences and requirements among consumers based on their ways of life emerges. Educating the market regarding smart home devices, along with educating how these gadgets can be integrated into healthcare and security systems, provides new growth opportunities for the healthcare, services market and home security business. Recent Trends: Some of the prominent developments in the smart home automated building market are the emergence of more voice-controlled devices, the incorporation of smart kitchen appliances along with lighting systems, and more home-connected hubs. The market is also moving towards the use of platforms or service providers where the functionality involves remote access to data or analytics or personalization based on some algorithms or recommendations. Apart from that, it is also due to the convergence of technologies like 5G with Wi-Fi 6 that is enabling greater speeds and less delay, which has ensured that many smart devices deployed within the home connectivity system operate without problems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Smart Home Automated Building Market Drivers
Rising Demand for Energy Efficiency and Comfort
The increased consciousness about the importance of energy efficiency and the growing desire of inhabitants for comfort in their homes have strongly pushed the adoption of smart home automated building systems. These systems allow controlling, monitoring, and switching off/on home lighting, heating, cooling, and security systems remotely, permitting them to decrease energy consumption and improve comfort. Using voice control that allows connecting smart home devices to various voice assistants and home automation platforms, inhabitants can control their homes even without using their hands, which increases the level of comfort even more.
Advancements in IoT Technology and Connectivity
The Smart Home Automated Building Market Industry is growing rapidly due to advancements in IoT technology and connectivity. The emergence of low-power wireless technologies such as Zigbee and Z-Wave allows the connection of different smart home gadgets to one another within a home network. Moreover, high-speed internet connectivity that is increasingly available today, such as fiber optic cables and 5G networks, enables real-time transfer of data between various devices and cloud-based platforms in order for them to be accessed and controlled remotely.
Growing Adoption of Smart Home Devices
The growing adoption of smart home devices, such as smart speakers, smart lighting, and smart thermostats, is contributing to the expansion of the Smart Home Automated Building Market Industry. These devices offer convenience, energy efficiency, and enhanced security, making them increasingly popular among homeowners. The integration of these devices with smart home automated building systems allows homeowners to create a more connected and intelligent home environment, where various devices work together to automate tasks, optimize energy consumption, and provide a more personalized experience.
Smart Home Automated Building Market Segment Insights:
Smart Home Automated Building Market Property Type Insights
Property Type Segment Insight and Overview There are three main types of property within the Smart Home Automated Building Market, which are residential buildings, commercial buildings, and industrial buildings. Each segment offers its own unique market dynamics and opportunities for growth. Residential Buildings: Market Size: In 2023 and years prior, residential buildings have been recorded to account for a majority of the revenue within the Smart Home Automated Building Market, likely to continue to account for a majority in the future.Growth Drivers: The most exclusive driver of this market is the increasing need for consumers to enjoy the luxury of being closer to home without sacrificing the convenience of living farther away. The need for the high security of residents has also driven more people to invest in smart homes. Lastly, the need to reduce energy consumption has caused consumers to invest in energy-efficient smart home devices. Key Trends: Smart devices used in residential buildings are smart lighting, thermostats, door locks, and smart home hubs. However, the most new and successful popularity of devices in this market are the use of voice assistant features and IoT devices.Commercial Buildings: Market Size: Commercial buildings also accommodate a high share of the Smart Home Automated Building Market, as more businesses are beginning to invest in smart building technology by the year. Growth Drivers: Commercial buildings, including smart security and space management systems, greatly improve the employee’s overall experience in working in the building. It also increases productivity and reduces energy consumption within the space. Key Trends: Some of the technologies used in the market are building management systems, smart lighting, HVAC, and security systems.Most of these uses combine the use of AI and IoT to assist in creating a more up-to-date management experience. Industrial Buildings: Market Size: Compared to the other two markets, industrial buildings have a significantly smaller share of the Smart Home Automated Building Market, making it ripe with potential for growth. Growth Drivers: As with the other two markets, the industrial buildings drive the implementation of smart home devices to encourage lower energy consumption and being able to improve industrial productivity. Point solutions enabled by IoT are an example of the technology creating this trend.Key Trends: Smart devices used in these buildings are smart lighting, sensors, energy management devices, and surveillance devices. Others are predictive maintenance and remote monitoring devices.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Smart Home Automated Building Market Application Insights
The Application segment of the Smart Home Automated Building Market is categorized into Lighting Control, HVAC Control, Security and Access Control, Entertainment Systems, and Energy Management. Among these, the Lighting Control segment held the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period. The growth of this segment is attributed to the increasing adoption of smart lighting systems, which offer energy savings, convenience, and enhanced security. The HVAC Control segment is expected to witness significant growth due to the rising demand for energy-efficient and automated HVAC systems.The Security and Access Control segment is also projected to grow at a notable rate, driven by the increasing concerns about home security and the growing adoption of smart security systems. The Entertainment Systems segment is expected to grow steadily, fueled by the increasing popularity of home entertainment systems and the integration of smart devices with these systems. The Energy Management segment is anticipated to grow at a moderate pace, driven by the growing adoption of smart energy management systems, which help optimize energy consumption and reduce utility costs.
Smart Home Automated Building Market Technology Insights
The Smart Home Automated Building Market is segmented by Technology into Wired Systems, Wireless Systems, and Hybrid Systems. The Wired Systems segment held the largest market share in 2023 and is expected to continue to dominate the market throughout the forecast period. This is due to the fact that wired systems are more reliable and secure than wireless systems. However, the Wireless Systems segment is expected to grow at a faster CAGR during the forecast period due to the increasing popularity of wireless devices and the growing demand for smart home solutions.The Hybrid Systems segment is expected to grow at a moderate CAGR during the forecast period, as it offers the benefits of both wired and wireless systems.
Smart Home Automated Building Market Protocol Insights
Zigbee, Z-Wave, Wi-Fi, Bluetooth, and Thread are the key protocols used in smart home automated building systems. Zigbee and Z-Wave are mesh network protocols designed specifically for home automation, offering low power consumption and reliable connectivity. Wi-Fi is a widely adopted protocol for internet connectivity, providing high bandwidth but with higher power consumption. Bluetooth is a short-range wireless technology commonly used for connecting mobile devices and peripherals. Thread is a low-power mesh network protocol optimized for IoT devices, offering secure and reliable communication.The Smart Home Automated Building Market revenue for the Protocol segment is expected to witness significant growth in the coming years. Zigbee and Z-Wave are expected to hold a dominant share due to their strong presence in the market and support from major industry players. Wi-Fi is expected to gain traction due to its wide availability and compatibility with various smart devices. Bluetooth is expected to see increased adoption for short-range connectivity applications. Thread is expected to emerge as a promising protocol for IoT devices, offering enhanced security and reliability.
Smart Home Automated Building Market Regional Insights
The Smart Home Automated Building Market is segmented regionally into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth in this region can be attributed to the increasing adoption of smart home devices, the presence of major players in the market, and the rising demand for energy-efficient solutions. Europe is the second-largest market for smart home automated buildings, with a significant market share.The region is witnessing a growing demand for smart home devices, particularly in countries such as Germany, the United Kingdom, and France. The APAC region is expected to witness the highest growth rate over the forecast period due to the increasing disposable income, the growing middle class, and the increasing awareness of smart home technologies. South America and MEA are expected to have a relatively smaller market share but are expected to grow at a steady pace, driven by the increasing demand for smart home devices and the rising awareness of smart home technologies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Smart Home Automated Building Market Key Players And Competitive Insights:
Given the competitive nature of the Smart Home Automated Building Market, some of the major players in the industry are constantly trying to outperform their rivals by investing resources in research and development to develop new products and solutions. This is why most leading Smart Home Automated Building Market is currently concentrating on the acquisition of their competitors and partners to expand their existing product portfolios and expand their market presence geographically. The industry is comprised of a variety of competitors ranging from well-established firms to newly formed startups. As such, various strategies, including product differentiation, partnership with other firms and aggressive marketing, are being utilized by the competitors with the view of gaining a competitive edge.Crestron Electronics, Inc. is considered one of the major players in the Smart Home Automated Building Market. The firm provides a wide variety of smart home automation solutions and employs technologies for controlling lighting, climate, audio and video, and security systems in places of commercial and residential nature. The company has a vast number of clients and targets to satisfy all of the needs that appear from their target customers. Their products are known for their quality and ease of use. In addition, they have a global presence of distributors and a large number of resellers, assisting the company in ensuring a broad customer base.Another known competitor in the Smart Home Automated Building Market industry is Control4 Corporation. The company specializes in the development of smart home marketing, such as lighting control, climate control, video-centric solutions, audio systems, and security-related products. The company has been primarily focusing on residential customers. The major strategy of the company is the development of user oriented solutions. In addition, the company employs a network of dealers who provide installation and maintenance support for customers. They are known for their strong presence in the market as they have been aggressively enhancing their available solution options and advertising their products to customers.
Key Companies in the Smart Home Automated Building Market Include:
- Schneider Electric
- ABB
- Trane Technologies plc
- Honeywell International Inc.
- Legrand SA
- Ingersoll Rand
- RTI Corporation
- Lutron Electronics Co., Inc.
- Siemens AG
- Johnson Controls International plc
- Crestron Electronics, Inc.
- Savant Systems, LLC
- Carrier Global Corporation
- Control4 Corporation
- Vantage Controls
Smart Home Automated Building Market Industry Developments
The Smart Home Automated Building Market is projected to reach a valuation of USD 271.8 billion by 2032, expanding at a CAGR of 25.91% from 2024 to 2032. The market growth is attributed to the increasing adoption of smart home technologies, rising demand for energy efficiency, and growing awareness of home security. Recent developments include the integration of Artificial Intelligence (AI) and Internet of Things (IoT) technologies, enabling advanced automation and personalized user experiences. Key players are investing in research and development to enhance product offerings and expand their market share. Strategic partnerships and collaborations are also shaping the market landscape, driving innovation and market expansion.
Smart Home Automated Building Market Segmentation Insights
- Smart Home Automated Building Market Property Type Outlook
- Residential Buildings
- Commercial Buildings
- Industrial Buildings
- Smart Home Automated Building Market Application Outlook
- Lighting Control
- HVAC Control
- Security and Access Control
- Entertainment Systems
- Energy Management
- Smart Home Automated Building Market Technology Outlook
- Wired Systems
- Wireless Systems
- Hybrid Systems
- Smart Home Automated Building Market Protocol Outlook
- Zigbee
- Z-Wave
- Wi-Fi
- Bluetooth
- Thread
- Smart Home Automated Building Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
27.15 (USD Billion) |
| Market Size 2023 |
34.18 (USD Billion) |
| Market Size 2032 |
271.8 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
25.91% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Schneider Electric, ABB, Trane Technologies plc, Honeywell International Inc., Legrand SA, Ingersoll Rand, RTI Corporation, Lutron Electronics Co., Inc., Siemens AG, Johnson Controls International plc, Crestron Electronics, Inc., Savant Systems, LLC, Carrier Global Corporation, Control4 Corporation, Vantage Controls |
| Segments Covered |
Property Type, Application, Technology, Protocol, Regional |
| Key Market Opportunities |
IoT Integration Remote Monitoring Energy Efficiency Security Enhancements Healthcare Applications |
| Key Market Dynamics |
Rising adoption of IoT devices Increasing demand for energy efficiency Growing awareness of home security. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Smart Home Automated Building Market size is estimated to be worth USD 34.18 billion in 2023 and is projected to grow at a CAGR of 25.91% to reach USD 271.8 billion by 2032.
North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa are the key regions in the Smart Home Automated Building Market.
The Smart Home Automated Building Market is expected to grow at a CAGR of 25.91% from 2024 to 2032.
Major applications of Smart Home Automated Buildings include residential, commercial, and industrial.
Some of the key competitors in the Smart Home Automated Building Market include Honeywell, Johnson Controls, Schneider Electric, Siemens, and ABB.
Key trends in the Smart Home Automated Building Market include the increasing adoption of IoT devices, the growing demand for energy efficiency, and the rising popularity of smart cities.
Challenges faced by the Smart Home Automated Building Market include the high cost of installation and maintenance, the lack of standardization, and security concerns.
Opportunities for the Smart Home Automated Building Market include the growing demand for smart homes, the increasing adoption of green building technologies, and government initiatives to promote energy efficiency.
The future outlook of the Smart Home Automated Building Market is positive. The market is expected to grow at a significant rate in the coming years due to the increasing adoption of smart home technologies, the rising demand for energy efficiency, and the growing popularity of smart cities.
Key factors driving the growth of the Smart Home Automated Building Market include the increasing adoption of IoT devices, the growing demand for energy efficiency, the rising popularity of smart cities, and government initiatives to promote energy efficiency.
