Smart Home Market, by Products (lighting control, security & access controls, entertainment devices, hvac, smart kitchen appliances, home appliances, smart furniture, home healthcare, other devices), By Application (new construction, retrofit), By Protocols (wireless, wired, hybrid), and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The Smart Home Market size was estimated at USD 96.16 billion in 2023 and is projected to reach USD 342.37 billion in 2030 at a CAGR of 19.89% during the forecast period 2023-2030.
A smart home is one that has several systems and technologies incorporated into it that allow its owners to control various aspects of the property. Smart houses may have features like locks that can be opened by pressing a button, lights that turn on when you enter the room, and thermostats that adjust the temperature based on your preferences. Even home security or energy consumption may be tracked by some smart home devices. The simplicity and security of automating house systems are two of the most obvious advantages of installing a smart home system. A smart house allows for smartphone-based direct management of lights, locks, thermostats, and security systems.
The popularity of virtual assistants like Siri, Google Assistant, and Alexa has made it possible for consumers to automate tasks using voice commands. The demand for smart home gadgets is being driven by newly developed functions of these digital assistants, such Bluetooth speakers and hands-free channel surfing, among others. Modern technologies like the Internet of Things (IoT), blockchain, smart speech recognition, and AI are being adopted quickly, which has a big influence on industry growth. Moreover, the expansion of this market has also been aided by a rise in the usage of IoT in both developed and emerging areas. Demand for the smart home industry has been aided by technology' capacity to provide communication between devices.
On the other hand, it is expensive because of the use of cutting-edge technology, engineering, manufacturing, and the setup or installation costs of smart home appliances. In addition, additional expenditures for regular maintenance and service restrict many people's ability to purchase. Therefore, expensive household appliances operate as a restraint on the market's expansion.
The COVID-19 pandemic initially had a little impact on the worldwide market for smart homes since production houses ceased operations, new development was halted, and there were not enough workers. The epidemic decreased operational efficiency, which resulted in decreased income. Along with this, the broken supply chain and border restrictions during this crucial period hindered the import and export of raw materials and items linked with smart home devices. The altered consumer behaviour had a negative effect on the sales of smart home devices during the first lockdown period.
The Smart Home Market is expected to grow during the forecast period. This growth can be attributed to several factors. The ability to control smart devices using voice commands has been made feasible by the rise of digital assistants like Alexa and Siri. The desire for smart home goods is fuelled by the new functionalities of these digital assistants, such as Bluetooth speaker control. Customers appreciate customized products because they are more practical and provide a superior user experience. The internet of things (IoT), artificial intelligence (AI), and other modern technologies are being adopted quickly, which has a big influence on market growth. The market for smart homes has expanded as a result of a rise in IoT adoption rates in both developed and developing countries. However, it is expensive because of the use of cutting-edge technology, engineering, manufacturing, and the setup or installation costs of smart home appliances. This might hamper the growth of the market during the forecast period.
North America to Dominate the Market