Smart Home Automation Market: Overview
The market size for Smart Home Automation was USD 89.4 billion in 2021, projected to grow at a CAGR of 14.1 percent during the forecast period. The market is anticipated to gain from rising millennial homeownership rates and rising Internet of Things (IoT) technology usage during the forecast period. The need for smart home automation systems is also anticipated to be driven by rising disposable income in developing nations, expanding the industry. The need for smart devices is anticipated to increase shortly due to the integration of modern technologies like IoT, AI, and ML. A poll by Voicbot.ai estimates that 87.7 million US consumers were using smart speakers in January 2020.
The sizeable number of these consumers demonstrates the increased propensity to use smart home automation technology. Additionally, the number of smart city initiatives is expanding globally, driving demand for home automation enterprises. With remote access to home accessories, consumers can control their appliances while away. They can also utilize video surveillance equipment to monitor any activity happening within the home. For instance, in February 2022, One Switch, an Indian firm specializing in smart home automation, announced the availability of franchising opportunities.
Eco-friendly products from smart home providers like One Switch, such as automated water and motion sensors, have also contributed to lower electricity costs and an improved living environment. Due to these factors, the smart home automation market is anticipated to grow in size throughout the projected period. Market participants invest heavily in developing cutting-edge smart security systems to meet customers' increased security demands. This is anticipated to present the potential for the smart home automation market in the coming years.
Smart Home Automation Market: COVID-19 Impact
The COVID-19 outbreak negatively impacted the market for smart home automation. Due to the temporary halt of industrial operations and the sparse labor presence, production output was impeded across industries. Due to an unstable supply chain, the initial production of smart home automation products and gadgets fell sharply. Additionally, the percentage of spending on smart home automation declined as a result of the economic crisis unpredictability. However, the restrictions on staying at home to stop the sickness from spreading drove up internet demand steadily. As a result, there is now more demand for smart TVs, smart set-top boxes, voice-activated streaming sticks, and other gadgets.
Smart Home Automation Market: Drivers
Flexibility and High Precision Management of Automation Sector to Drive Market Growth
For its flexibility and high precision management, the automation sector is widely used in accommodation management. Among these, the security system is a fast-growing industry. The major smart home automation providers invest heavily in developing novel and advanced smart security systems that cater to property safety. For example, in August 2020, Hero Electronix developed a wide range of address security solutions under Qubo Shield, intending to provide continuous end-to-end protection to all appliances and other features. It includes dangers like incursion, theft, gas leak, and fire alarm. In addition, the company has launched an AI-based safety device to detect people without masks in the vicinity. As a result, various novel security apps are currently available.
Similarly, smart doorbells with audio and video capabilities, AI-based biometrics, and face recognition are becoming more popular. Honeywell Inc. also provides an integrated face recognition camera for monitoring one's or a child's activity. As a result, these increasingly sophisticated home security solutions are expected to drive market expansion.
Customer’s Rising Interest in Smart Home Technology to Drive Market Growth
Across all industries, smart technology is expanding exponentially. The smart 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 the internet of things (IoT), artificial intelligence, machine learning, and others to drive automation capabilities. According to a survey by Voicebot.ai, almost 87.7 million Americans were using smart speakers in January 2020. This sharp increase in smart speaker popularity reflects users' shifts toward automating tasks using voice commands.
Smart Home Automation Market: Restraints
Expensive Products and Limited Knowledge Regarding Technology to Hamper Market Growth
As automation equipment and tools are expensive, people with ordinary or below-average disposable income find it difficult to purchase such cutting-edge services. There is polarization in purchasing such advanced equipment because of its expensive price. As a result, it is predicted that the cost barrier will significantly constrain market expansion throughout the forecast period. Additionally, a lack of user familiarity with the technology prevents more smart home automation devices from being adopted. Therefore, the development of the market during the assessment period is likely to be constrained by complex technologies and applications.
Smart Home Automation Market: Segment Overview
Wireless Segment to Dominate Market Due to Increased Customisation and Supports Numerous Running Devices
Based on product, the Smart Home Automation market is segmented into cellular, wireless and others. The wireless segment dominates the market and is expected to maintain its dominance over the forecast period. Wireless network technology is expected to grow quickly and capture the largest revenue share. 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. However, in terms of revenue share for smart home automation solutions, wireless is ahead of cellular technology.
In contrast to wireless networks, it offers great security against hackers. Another important aspect of its use for automation is its excellent reliability. Due to its inexpensive communication network, power line-based is predicted to increase gradually during the projected period.
Smart Kitchen Category to Dominate Market Owing to Strong Demand for Smart Appliances and Rapid Growth of Technology
Based on application, the Smart Home Automation market is segmented into security, lighting, entertainment, HVAC & energy management and smart kitchen. The smart kitchen segment dominates the market and is expected to maintain its dominance over the forecast period. The concept of the kitchen has undergone a fairly drastic transformation due to the strong demand for smart appliances and the rapid growth of technology, such as the Internet of Things, with a major focus on increasing efficiency in the kitchen and decreasing the time spent cleaning and cooking. IoT is a burgeoning network of commonplace objects that links commercial machinery to residential appliances for information sharing and task completion while people are occupied with other daily activities. With all these developments, the market for smart home automation is anticipated to see prospects for the smart kitchen segment.
Smart Home Automation Market: Regional Landscape
North America to Dominate Market due to Growing Number of Cosmetic Procedure
Over the forecast period, it is anticipated that the North American market will account for the largest revenue share due to established producers and a huge consumer base. Countries like the United States and Canada have a significant impact on the economy of North America. The presence of major companies in these nations, such as Honeywell International Inc., Acuity Brands Inc., Johnson Controls Inc., United Technologies Corporation, and Crestron Electronics Inc., is assisting market expansion with their cutting-edge offerings and marketing campaigns. In addition to the region's strong acceptance and awareness rates for new technology. For instance, the report released in 2018 found that over one-third of US consumers own two or more smart home devices, which illustrates the growth of the North American market for home automation systems.
The Asia Pacific market is anticipated to experience stable revenue growth throughout the forecast period due to rising investments in smart technologies. Due to the presence of various smart device manufacturers, China will likely control the region's share. Due to macroeconomic stimulus, the Asia Pacific region is seeing a healthy increase in disposable income, which is expected to fuel market growth. The expanding senior population base and innovative technology, such as voice-controlled smart home devices, are the main factors fueling the need for smart home automation throughout the anticipated time. India is expected to grow quickly throughout the anticipated period due to the rising demand for automated solutions. In April 2021, Schneider Electric worked with India-based house renovator Livspace to provide ease of access to home solutions while considering the growing consumer desire.
Global Smart Home Automation Market: Competitive Landscape
In June 2022, when iOS 16 was released, Apple provided details on how it is ushering in the next generation of home automation. Apple has also joined Project Connected Home over IP, a joint initiative with Google, Amazon, and the Zigbee Alliance to create a uniform standard that enables any smart home device to work together regardless of the platform. On the other hand, in August 2020, To provide constant end-to-end security for all appliances and other aspects, Hero Electronix introduced a variety of address security solutions under the Qubo Shield brand. Threats, including burglary, gas leaks, fire alerts, intrusions, and others, are covered. The business also introduced AI-based security tools to find people without masks on nearby property.
A few players in the Smart Home Automation Market includeABB Ltd. (Switzerland); Control4 Corporation (U.S.); Crestron Electronics; Inc. (U.S.); Honeywell International Inc. (U.S.); Ingersoll-Rand plc (Ireland); Johnson Controls (U.S.); Legrand SA (France); Leviton Manufacturing Company; Inc. (U.S.); Lutron Electronics Co.; Inc. (U.S.); Schneider Electric (France); Siemens AG (Germany).
Global Smart Home Automation Market is Segmented as Below:
Key Elements Included In The Study: Global Smart Home Automation Market
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