The global smart home automation market is expected to reach ~ USD 95 billion by 2025 and is anticipated to grow at a CAGR of over 12% in the next five years.
Home automation is the automatic and electronic system, which controls household appliances, features, and activities. Each device in this system has sensors and Wi-Fi connectivity so that users can manage and control them from tablet or smartphone locally or remotely. Home automation allows users to turn on the lights, turn down the heat, or even lock the doors, irrespective of the location. It offers different functions and services such as remote lighting control, thermostat control, fire and carbon monoxide monitoring, home automation security systems and cameras, appliance control, alarm systems, live video surveillance, real-time text, and email alerts.
Increasing electricity prices across the globe have significantly driven the global home automation market growth. Increased electricity prices have ultimately increased the household operating budget. Major end-users of home automation systems are hospitality industries and residential buildings. The major reasons behind the increased electricity prices are scarcity of natural resources and rising prices of commodities such as coal. With the help of home automation systems, consumers can regulate their usage and reduce their electricity expenditure. Other factors driving the global home automation growth are stringent government regulations, development of innovative and efficient energy systems, the rising importance of home monitoring from a remote location, increasing consumer awareness related to home automation solutions.
With increasing awareness of new home automation technologies and inclination towards a luxurious lifestyle in developing countries have surged global home automation market growth. The growing demand for features like the convenience of remote operation along with exceptional experience offered by smart home automation has scaled up the graph of global home automation market growth.
Smart Home Automation Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 94 billion|
|Growth Rate||CAGR of 12 % during 2021-2028|
|Segment Covered||Application, Component, Technology, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Honeywell, Johnson Controls, Control4, Cisco System, ADT|
Key Segments of the Global Smart Home Automation Market
Application Overview, 2018-2025 (USD Billion)
- Lighting Systems
- Monitoring and Security
Component Overview, 2018-2025 (USD Billion)
Technology Overview, 2018-2025 (USD Billion)
Regional Overview, 2018-2025 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of APAC
- South America
- Rest of South America
- Middle East and Africa
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global intelligent virtual market. Benchmark yourself against the rest of the market.
- Be prepared for how research & development (R&D) investments and the Smart Home Automation market will be impacted by socio-political and economic factors over the next few years
- Ensure you remain competitive as innovations by existing key players boost the market.
What does the report include?
- The study on the global intelligent virtual market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the Smart Home Automation industry and their strategic initiatives for the product development
- The study covers a qualitative and quantitative analysis of the market segmented based on type and applications. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
This study is suitable for industry participants and stakeholders in the global Smart Home Automation market. The report will benefit:
- Every stakeholder involved in manufacturing and distributing Smart Home Automation components or solutions.
- Managers within financial institutions looking to publish recent and forecasted statistics about the global Smart Home Automation market.
- Government organizations, regulatory authorities, policymakers and financial organizations looking for R&D investment trends in the global Smart Home Automation market.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.
Frequently Asked Questions (FAQ) :
Increasing adoption of the Internet of Things (IoT) coupled with connected devices is expected to drive the growth of the home automation market around the world. It is expected that by 2025, there will be approximately 75 billion IoT devices globally. North America, Western Europe, and China together will account for more than 67% of total installed IoT devices across the globe. Furthermore, rising awareness regarding efficient energy usage, technological advancements, and others are some of the additional factors anticipated to drive the growth of the smart home automation market in the given analysis period. Moreover, increasing concern over security and safety is further impacted significantly on global market growth.
Application Type Segment
Based on application, the market is segmented into lighting systems, monitoring and security, entertainment, and HVAC. Among these, the lighting segment is expected to hold a significant share during the analysis period. Increasing the expansion of major companies such as Phillips, GE Lightning, Advanced Lighting technology, etc. in emerging economies is anticipated to drive the lighting segment in the given analysis period. Moreover, increasing the adoption of wireless technologies is another factor contributing to the growth of this segment in overall market analysis
Based on components, this market covers categories like hardware, software, and services. In 2019, the market for the hardware segment was valued over USD 25 billion and is anticipated to grow at a considerable rate over the forecast period.
Based on technology, this market covers categories like wired and wireless. In 2019, the market for the wireless segment holds a significant share in the smart home automation market and is anticipated to grow at a significant rate over the forecast period.
On the geographical front, the market is segmented into North America, Europe, Asia Pacific, South America and the Middle East and Africa. North America is expected to hold the largest share in the global home automation market in a given forecasted period. This can be attributed due to rising mergers and collaborations between IT companies and major industry players to develop AI and IoT based home automation solutions in the US. Furthermore, the high adoption rate of safety and security solutions in the US is expected to drive the smart home automation market in the region.
Asia Pacific region is anticipated to grow at a considerable growth rate over the forecast period owing to the rising adoption of smartphones and high-speed networks.
The key players operating within the global smart home automation market are Honeywell, Johnson Controls, Control4, Cisco System, ADT, and others. As of 2019, the market for smart home automation providers is fragmented with the presence of established global and domestic players across the globe. Moreover, the established companies are coming up with upgraded versions of smart home automation systems with upgraded as well as advanced digital and automation solutions.