The global smart home market size is expected to reach US$117,820 million by 2027, from US$72,040 million in 2020, at a CAGR of 6.8% between 2021 and 2027, according to a new report by Valuates.
The expansion of the smart home industry has been driven by factors such as the growing need for home monitoring systems and the rising disposable income of people in emerging countries, the report said.
Growing customer preference for video doorbells, voice-assisted technologies (such as Alexa and Google Home), and surveillance systems is expected to drive the market growth.
The market is also driven by an increase in the number of internet users and the adoption of smart devices, as well as a growing need for energy-saving and low-carbon solutions.
The convenience offered by smart home devices is expected to drive growth. Users have remote access to systems such as heating and air conditioning, intercoms, music and media devices throughout the home.
Video intercoms make it easy to connect with people in the home or visitors at the door, with built-in hard drives that allow homeowners to view video or listen to audio in any area.
If homeowners are on vacation, they can use the remote viewing feature of IoT apps to turn lights on or off to make the home look occupied. Or, the thermostat can be controlled remotely by the away homeowner, ensuring the home is at a pleasant temperature when they return.
Home automation even allows a person to schedule automatic operations such as watering the grass, eliminating the need to perform these time-consuming tasks on a regular basis.
The growing need for home security is expected to increase the adoption of smart homes, thereby driving the smart home market.
Homeowners can monitor visitors at their door using smart home video devices while they are away, or even when they are at home, to see if they can safely open the door.
Advanced security systems with cameras, motion sensors, and a link to the local police station or private security company are included in smart homes. They can also use key cards or fingerprint recognition instead of traditional locks, making it more difficult for intruders to gain access.
Accessibility is another key driver of growth. Smart home devices for accessibility can provide an added sense of security for the elderly or disabled. Voice command systems can control lights, lock doors, dial a phone number or access a computer.
Finally, smart homes can be more energy efficient and more environmentally friendly. When no one is in a room, lights can be turned off automatically and the thermostat can be set to allow the interior temperature to drop during the day before returning to a more pleasant level when occupants return from work or from school.
Energy efficiency also leads to savings. This feature is in turn expected to drive the growth of the market.
By type, smart home appliances are expected to be the most lucrative segment. The availability of wireless solutions that have enabled smart devices to connect wirelessly with smartphones and tablets via the Internet or Bluetooth, as well as wireless connectivity, which has been a major technological advancement in the home appliance industry, propelled the expansion of the market.
The ability to remotely manage smart home appliances has reduced energy consumption and reduced the cost and time needed for household chores. The demand for home appliances is expected to increase in the near future due to these advantages.
Based on the region, Asia Pacific is expected to be the most lucrative. Changing lifestyles, increasing disposable income, a growing geriatric population, a growing trend to focus on smart building infrastructure in developing economies in the region, the presence of a large customer base and Rapid technological advancements in smart home products are all driving the market growth in APAC. .