Smart Home Automation Market

The Global Smart Home Automation Market Industry experiences a notable surge in consumer demand for convenience and efficiency in daily life. As households increasingly seek to simplify tasks through automation, the market is projected to reach 103.4 USD Billion in 2024. This trend is driven by the proliferation of smart devices that allow users to control lighting, security, and appliances remotely. For instance, smart thermostats and lighting systems not only enhance comfort but also contribute to energy savings. The appeal of seamless integration among devices further fuels this demand, indicating a shift towards more connected living environments.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 37.7% in the Smart Home Automation market in 2022 and is expected to maintain its dominance during the forecast period. The North America is the largest for Smart Home Automation market . Because it has more financial institutions than any other, the region has attracted international investors. Local players dominate the North American market, resulting in severe entry hurdles.

Smart home systems have a large market share in North America, and there is a significant number of smart home systems already installed. 

According to the forecast, by 2021, about 73 million families from Canada and the United States, or at least 55 percent of all households, will have smart home systems. As shown by the statistics, a majority of buyers, up to 80%, are interested in smart technology, while numerous sellers consider including smart features as a way of increasing the selling points of their houses. Some of these popular solutions include smart thermostats, smart light bulbs, smart plugs, connected security cameras, and voice-controlled speakers.

The options are diverse in terms of reliable manufacturers, namely Signify, Resideo, and Danfoss, as well as others like Belkin that have been established for many years in this particular field; Ecobee and Sonos are just a few emerging players, along with Arlo and Netatmo, as well as IKEA and Wyze Labs, providing an extensive range of innovative products for consumers.

In the smart-home system market, traditional home automation vendors like Crestron Electronics, Control4, Savant Systems, eQ-3, and Loxone face competition from companies in adjacent industries. Communication and security service providers such as ADT, Vivint, Comcast, and Brink’s Home Security have emerged as major vendors for whole-home solutions in North America. The market in Canada is projected to have the fastest CAGR of 21.8% during the forecast period. However, extreme cold temperatures in Canada during winter can significantly drain the batteries of wireless security cameras, which may hinder the market to some extent.

Figure3: SMART HOME AUTOMATION MARKET SIZE BY REGION 2022&2032

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

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

Florida ranks third in interest in smart home automation, following New York and California. Premium Digital Control & Automation, a leading automation company in South Florida, has experienced growth as homeowners seek professional installation for their smart home systems. As demand for smart homes personalized to individual preferences increases, companies started to launch new surveillance products with customized controls and stylish designs. In Florida housing market there is a certain rise in demand, with influx of residents from New York and other states.

More than 900 people move to Florida every day, with 33,500 from New York having just moved in the past 10 months. This has spurred huge demand for housing in Florida, unlike anything real estate agents have seen. In Palm Beach County, for instance, new single-family home contracts over $ 1 million saw a 268% increase compared to last year. This has fueled the need for housing and has created opportunities for smart home automation in the region.

The European market for smart home systems is still a few years behind the North American market in terms of market penetration and maturity. In the EU28+2 countries at the end of 2019, 111.9 million smart home systems were in use, up from 83.9 million a year earlier. A total of 10.8 million of these systems were multifunction or whole-home systems, while 101.1 million were point solutions. By the end of the year, 17.4 percent of all European households were smart, which corresponds to approximately 40.3 million smart homes. Major vendors in Europe include Centrica, Somfy, Deutsche Telekom and Verisure.

Companies such as Tuya Smart have established a strong IoT ecosystem in Europe through strategic partnerships. These partnerships with market-leading players such as Supreme, Calex, Deltaco, PVG, Link2Home, LVWIT, and others have enabled Tuya to offer a comprehensive suite of IoT solutions tailored to the needs of European consumers. The partnerships have expanded Tuya's reach into various markets. For example, the partnership with Supreme has extended Tuya's ecosystem into the consumer battery market, while the collaboration with Calex has focused on decorative lighting.

Tuya has also worked with Link2Home, LVWIT, Deltaco, Lampemagasinet, PVG, and other regional brands in the UK, Northern Europe, Italy, and the Netherlands to bring innovative smart home products to the market.

With a strong presence across different End Uses and geographies, the Smart Home Automation market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Smart Home Automation market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Homeseer Technologies LLC, Control4 Corporation, ADT Inc, Koninklijke Philips N.V., Legrand Group, ABB Ltd, Schneider Electric SE, Google LLC, Vivint Smart Home Inc, Lutron Electronics Inc, LG Electronics, Crestron Electronics Inc, Wink Labs Inc, Johnson Controls, and Siemens AG, and Others. ABB focuses on technology innovation, which is critical to sustaining economic growth. The company also focuses on enhancing its product portfolio and capacity and the partner company ecosystem to support the customers in designing, developing, and deploying infrastructure solutions.

It emphasizes the expansion of high-value-added services and solutions for the growth of the business. ABB strategically addresses fast-growing segments such as microgrids and food & beverages, focusing on markets in Africa, which helps the company increase its market share and focus on new growth opportunities.