Widespread use of smartphones and growing implementation of IoT technology will drive the demand for the smart home automation market
The global smart home automation market is expected to surpass USD 94 billion by 2025 by growing at a CAGR of over 12% during the forecast period 2020-2025. With the advent of the Internet of Things (IoT), the emergence of next-gen connected systems and the proliferation of smartphones and gadgets across the globe, the home automation market is expected to rise with a growth rate of double digits. Also, the home automation market is driven by the increasing energy costs, which boosts energy efficiency and optimization of energy consumption through the home.
One of the major factors expected to drive the smart home automation market over the forecast period is a growing demand for digital features like the convenience of remote operation where they have access to technologically advanced devices, particularly in developed economies. Among the key application, Monitoring and security and Lighting control system have a significant presence in the smart home automation market. Home automation allows users to turn on the lights, turn down the heat, automatic door locking, 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.
Lighting, entertainment, safety & security, HVAC, and others are some of the applications analyzed in this market. Among these, the lighting segment is expected to hold significant growth during the forecast 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.
The report also throws light on various aspects of the global smart home automation market by assessing the market using value chain analysis. The report covers several qualitative aspects of smart home technology in market drivers, market restraints and key industry trends. Furthermore, the report provides an in-depth assessment of the market competition with company profiles of global as well as local vendors.
The global smart home automation market has strong competition among the well-established and new emerging players. These market players target to gain a competitive advantage over the other players by participating in partnerships, mergers, and acquisitions and expanding their businesses.
Based on applications, this market covers categories like Lighting Systems, Security and monitoring entertainment and HVAC. The market for lighting system is expected to witness the highest growth rate over the forecast period.
On the geographical front, North America dominated the global smart home automation market in 2019 and is expected to do so over the forecast period 2019-2025. This region witnesses a matured market for technology adoption due to advanced IT infrastructure, the presence of many enterprises, and the availability of capable technical expertise. The US and Canada are expected to contribute significantly to the growth of the market in North America.
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.
Segment Overview of 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