Smart Home Automation Market Analysis

Global Smart Home Automation Market Overview

Smart Home Automation Market Size was valued at USD 72,437.3 Million in 2022. The Smart Home Automation market industry is projected to grow from USD 85,664.9 Million in 2023 to USD 480,658.2 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 20.7% during the forecast period (2023 - 2032). The Smart Home Automation Market is expected to grow significantly over the forecast period due to several factors. The growth of the Smart Home Automation Market is expected to be driven by key factors such as increasing adoption of IOT technology, rising demand for energy-efficient solutions and growing preference for remote access and control. However, factors such as High Initial Investment and Lack of Technical Expertise and Infrastructure In Developing Countries are expected to restrict market growth. On the other hand, Increasing Health Benefits from Smart Home Technology and Emerging Smart Home Technology pose lucrative opportunities for the Global market.

Figure1:Smart Home Automation Market, 2019 - 2032 (USD Million)

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

Smart Home Automation Market Opportunity

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  Increasing Adoption of IOT Technology

  
  

The Internet of Things (IoT) platform is one of the most important worldwide economic drivers of the smart home automation business. Home-based IOT-based technology offers energy-saving capabilities. The GSMA Intelligence predicts that the number of joints will rise from 10.3 Million in 2018 to about 25 Million by 2025. This implies that in a period as short as few years in the future most of the sensors, gadgets, and other objects will communicate with each other through the cutting edge technologies like 5G. Thanks to the growing trend towards the use of the IoT technologies in the smart home market now, consumers have different benefits, including convenience, security, and energy efficiency. Smart home devices give people a convenience they can utilize to control many aspects of their homes such as lighting, temperature and security from wherever they are. However, using smart home technology can on the other hand result in lower electricity bills with more efficient security measures, thus attracting modern homeowners.

The expansion in internet accessibility and penetration has raised market demand in urban areas. For instance, a survey from IoT Analytics estimates that there will be around 14.4 Million linked IoT devices by the year 2022. Up to 27 Million linked IoT devices are anticipated to exist by 2025.

Additionally, several global companies (such as Google, Amazon, and Samsung Electronics) compete in this sizable market and provide cutting-edge services and goods to tap into its expanding demand. A lot of startups are also attempting to enter this growing industry. Thus, the increased demand for smart applications such as voice control, energy management, and others has created lucrative business opportunities in the market.

Smart Home Automation Market Segment Insights:

Smart Home Automation Component Insights

Based on component, the Smart Home Automation Market segmentation includes Hardware, Solution, and Services. The Hardware segment held the majority share in 2022, contributing around ~60,0% to the market revenue. Hardware comprises of Lighting Controls, Security & Access Controls, HVAC Controls, Entertainment Control, Smart Thermostats, Smart Windows, etc. Intelligent buildings/home used lighting control system since 40% of the building energy is consumed by lighting. Lighting control systems involve lights with low energy consumption and higher luminous intensity thus the requirement for LED lights becomes low since they occupy less space. The flow of the LED technology has been accelerated in lighting control systems of intelligent buildings as these control systems are coupled with the wireless and sensing technologies and tied to the sensors that detect room occupancy and using ambient lighting conditions which allow control of lighting more efficiently, saving money spent on electricity and improving the user experience. A new trend of lighting control systems is the use of smart lighting that utilizes wireless network controllers to regulate the lighting. Smart lighting not only saves energy but also contributes to an improved ambient environment and helps to curb expenditure. Lighting control is one of the fastest-growing segments that falls in home automation segment which is the integral component of most commercial buildings Residential properties are switching to lighting control systems at a faster rate. These factors are what are boosting the demand of lighting controllers in the smart home automation market.

Figure2: Smart Home Automation Market, by Component, 2022 & 2032 (USD Million)

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

Smart Home Automation Vehicle Technology Insights

Based on Technology, the Smart Home Automation Market segmentation includes Wired, Wireless and Hybrid. The Wireless segment held the majority share in 2022 contributing around ~44% to the market revenue. The wireless smart home system provides a unique level of comfort and has attracted people from all over the world due to its versatility and compatibility with homes of all sizes and types. These systems employ technologies like Wi-Fi, Bluetooth, Z-Wave and Zigbee for quick and seamless connection between devices. In contrast to hardwiring, wireless automation only demands an obligatory wiring of power connections to wireless devices, controllers, and Wi-Fi routers. The primary benefit of wireless automation lies in its easy installation. The users can quickly attach devices to their system without any prior complicated planning or rewiring. The flexibility of wireless systems enables the use of many home management products without the endless worry about wiring. Moving of devices and controllers is easily done to expand their range of operations, without interfering with the function of the rest of the system.

A wireless technology adoption also makes it super easy to integrate new or upgraded technologies as they become available thereby improving overall efficiency and energy savings in the times to come. This function, indeed, increases a lot the life-time value of the system. In addition, the wireless automation technology can be easily retrofitted to older homes because it provides simplicity and convenience without requiring complicated rewiring. In terms of price wireless automation systems are more affordable than their wired counterparts The low installation cost makes wireless systems an attractive choice for homeowners who require low priced home automation.

Smart Home Automation Application Insights

Based on the Application, the Smart Home Automation Market segmentation includes Security & Access, Lighting, Entertainment, HVAC & Energy Management, Smart Kitchen, Smart Window and Others. By Application, Security & Access segment hold the majority market share in 2022 contributing 29% of the market share. The security and access system is the key segment of the smart home automation market applications. It puts the emphasis on upgrading home security and safety to include a number of security systems and technologies that can be employed to control access, detect possible intrusions, and ensure safety. The advanced technology enables home owners to control access to their homes in a remote manner. Mobile apps or voice assistants integration provides the opportunity to lock and open doors remotely. Smart locks frequently have such functionalities as keyless entry, access codes are only temporary, and activity logs with information about when the entrance and exit took place. Security cameras can be installed both indoors and outdoors to watch the population, fight off prospective criminals and give video evidence in case of any incidents. Smart cameras have the quality to record real high-definition video, motion detection, night vision, and the option to view via mobile apps remotely. Intrusion detection systems integrate sensors, like door/window sensors, motion detectors or glass breakage detectors, which are used to detect unauthorized access or potential security breaches. These sensors could set off alarms or alert messages that would prompt homeowners to act or to tip off authorities depending on the situation.

Smart Home Automation End Use Insights

Based on the End Use, the Smart Home Automation Market segmentation includes Apartments (Multi Family Homes) and Houses (Single Family Homes). By End Use, Apartments (Multi Family Homes) segment hold the majority market share in 2022 contributing 61% of the market share. Smart homes or multifamily homes are referred to as residential houses or complexes in which there are several individual accommodation units in a single structure. Smart home automation systems address the special needs and priorities of apartment residents so that they can enjoy higher levels of convenience, comfort, security, and energy conservation. Companies like SmartRent, ButterflyMX, and Brilliant have a variety of solutions for multi-residential homes.

Access Control and Security: Smart home automation gives some access control and security options which are most important in the big spaces of the place like an apartment building. Another example of such technologies could be installing smart locks, keyless entry system, video doorbells and security cameras. The neighbors will be able to monitor, control and remotely access their units and will get instant notifications and the peace of mind knowing their building won’t be broken into. Smart Rent uses Alloy Access, a Drupal-based system which can be adapted to provide control panels, smart access locks, and intercoms which combine with the property management and customer relationship management programs to keep the data where it belongs. Self-Guided Tours: By using an access control system we can regularly implement a automated walking tour system. Apart from self-guiding tours that residents can make themselves without having a leasing agent present to show them around is also a luxury.

Smart Home Automation Regional Insights

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 market for Smart Home Automation. 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.

Smart Home Automation Key Market Players & Competitive Insights

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.

Key Companies in the Smart Home Automation 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


• Siemens AG

Smart Home Automation Industry Developments

• In January 2024, US security and smart home solutions provider ADT Inc has decided to exit its residential solar business at a time when it was suffering from deteriorating conditions in the sector driven by macroeconomic headwinds.


• In March 2023, ADT and Google, the first integrated smart home security system is available for DIY users. The most sophisticated and comprehensive DIY security system ever developed by ADT is now available. It is also the first DIY product from ADT and Google to be fully integrated.

Smart Home Automation Market Segmentation:

Smart Home Automation Component Outlook

• Hardware
  
  
  
  • Lighting Controls
    
    
    
    • Relays
    
    
    • Occupancy Sensors
    
    
    • Daylight Sensors
    
    
    • Timers
    
    
    • Dimmers
    
    
    • Switches
    
    
    • Accessories & Other Products
    
    
    
    
  
  
  • Security & Access Controls
    
    
    
    • Video Surveillance Systems
    
    
    • Access Control Systems
    
    
    
    
  
  
  • HVAC Controls
  
  
  • Entertainment Control
  
  
  • Smart Thermostats
    
    
    
    • Sensors
    
    
    • Control Valves
    
    
    • Heating & Cooling Coils
    
    
    • Dampers
    
    
    • Actuators
    
    
    • Pumps & Fans
    
    
    • Smart Vents
    
    
    
    
  
  
  • Smart Windows
    
    
    
    • Smart Glass
    
    
    • Motors & Actuators
    
    
    • Sensors & Detectors
    
    
    • Control Panels
    
    
    • Switches
    
    
    • Others
    
    
    
    
  
  
  • Others
  
  
  
  


• Software


• Services

Smart Home Automation Technology Outlook

• Wired


• Wireless


• Hybrid

Smart Home Automation Application Outlook

• Security & Access


• Lighting


• Entertainment


• HVAC & Energy Management


• Smart Kitchen


• Smart Windows


• Others

Smart Home Automation End Use Outlook

• Apartments (Multi Family Homes)


• Houses (Single Family Homes)

Smart Home Automation Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


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


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


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


• South America
  
  
  
  • Chile
  
  
  • Brazil
  
  
  • Rest of South America