[By Products (Security & Access Controls, Lighting Control, Entertainment Devices, HVAC, Smart Kitchen Appliances, Home Appliances, Smart Furniture, Home Healthcare, and Other Devices), By Protocols (Wireless Protocols, Wired Protocols, and Hybrid), By Application (New Construction, and Retrofit )]

Smart Home Market Highlights

• Global smart home market revenue is poised to garner USD 731.8 billion by 2032 with a CAGR of 24.7% from 2024 to 2032
• North America smart home market value occupied around USD 37.9 billion in 2023
• Asia-Pacific smart home market growth will record a CAGR of more than 28% from 2024 to 2032
• Among product, the security & access controls sub-segment generated 30% of the market share in 2023
• Based on application, the retrofit sub-segment generated 62% of market share in 2023
• Expansion of voice-controlled devices and integration with popular virtual assistants is the smart home market trend that fuels the industry demand

Smart houses are automated homes that can regulate lighting, entertainment systems, appliances, and the environment. It also includes home security features such as alarms and access control. When home gadgets are connected to the Internet, they form the foundation of the Internet of Things (IoT). A smart home often links controlled gadgets to a gateway or central hub. The study analyzes the global smart home market with 2032 as the forecast period and 2023 as the base year. The worldwide smart home market is expected to develop at a significant CAGR of approximately 24.7% over the forecast period. Furthermore, market players are primarily focusing on developing new innovative technologies to complement the expansion of the smart home market.

Global Smart Home Market Dynamics

Market Drivers

• Increasing consumer demand for convenience and energy efficiency
• Growing adoption of IoT and smart devices
• Rising awareness of home security and safety solutions

Market Restraints

• High initial cost of smart home devices and systems
• Privacy and security concerns related to data breaches
• Compatibility issues among various smart home devices and platforms

Market Opportunities

• Expansion of smart home technologies in developing regions
• Integration of AI and machine learning for personalized home automation
• Growth in remote monitoring and control solutions for elderly care

Smart Home Market Report Coverage

Smart Home Market Insights

Increasing advancements in the internet of things (IoT), the proliferation of smartphones and smart gadgets, consumer adoption, increased awareness of healthy lifestyles, mounting demand for energy-efficient solutions, and government initiatives are some of the fundamental factors driving global smart home market growth. Growing improvements in the Internet of Things and the emergence of high-speed Internet connections are some of the primary factors projected to fuel the growth of the global smart home market over the forecast period.

The rapid expansion of wireless Internet, the availability of mobile devices, the supremacy of low-energy technologies, the advent of cloud services, and other reasons have expand in a new era of smart home technology. Furthermore, developments in wireless communication technologies have played a significant role in increasing demand for home theatre system controls, accelerating the entire smart home market for entertainment controls. The use of smart energy management systems is also driving the growth of the smart home market.

The growing population of smartphones and cost-cutting measures provided by smart homes are expected to drive overall market growth during the forecast period. For instance, according to The World Economic Forum, As of January 2023, India has more over 700 Million smartphone users, 425 Million of whom lived in rural areas. More than half of Indians now use smartphones, and the number of active internet users has increased by 45% since 2019, putting rural India at the center of the world's smart revolution. Growing investments in smart devices, early acceptance of various intelligent technologies, and technical breakthroughs are among the reasons driving the growth of the worldwide smart home market. However, the expensive cost of smart houses and a lack of information about new technology are two concerns that may impede the worldwide smart home market.

Smart Home Market Segmentation

The worldwide market for smart home is split based on product, protocols, application, and geography.

Smart Home Products

• Security & Access Controls
  • Security Cameras
  • Video Door Phones
  • Smart Locks
  • Remote Monitoring Software & Services
  • Others
• Lighting Control
  • Smart Lights
  • Relays & Switches
  • Occupancy Sensors
  • Dimmers
  • Other Products
• Entertainment Devices
  • Smart Displays/TV
  • Streaming Devices
  • Sound Bars & Speakers
• HVAC
  • Smart Thermostats
  • Sensors
  • Smart Vents
  • Others
• Smart Kitchen Appliances
  • Refrigerators
  • Dish Washers
  • Cooktops
  • Microwave/Ovens
• Home Appliances
  • Smart Washing Machines
  • Smart Water Heaters
  • Smart Vacuum Cleaners
• Smart Furniture
• Home Healthcare
• Other Devices

According to the smart home industry analysis, security and access controls are a dominant segment in the market due to their crucial role in enhancing safety and convenience. These systems include smart locks, surveillance cameras, and alarm systems, which provide homeowners with real-time monitoring and control over their property. Additionally, the integration of these systems with other smart home devices offers a comprehensive security solution, making them a key focus for both consumers and manufacturers. The entertainment segment is expected to dominate the market during the forecast period, owing to advances in wireless technology and rising demand for various entertainment gadgets. On the other hand, the HVAC control systems segment is expected to increase significantly during the forecast period due to rising concerns about energy efficiency and a growing demand for energy-efficient devices.

Smart Home Protocols

• Wireless Protocols
  • ZigBee
  • Wi-Fi
  • Bluetooth
  • Z Wave
  • Others
• Wired Protocols
• Hybrid

The wireless protocols segment is expected to largest protocols category in the smart home market, due to their ease of setup and operation. They allow smart devices to connect wirelessly, making them useful for a variety of home applications such as lighting and security. These protocols, like Wi-Fi and Zigbee, are dependable and compatible with a wide range of devices. As technology advances, more individuals prefer wireless choices for their smart homes.

Smart Home Applications

• New Construction
• Retrofit

According to the smart home industry forecast, retrofit solutions are leading the market due to their ability to upgrade existing homes with advanced technologies without requiring extensive renovations. These solutions offer a cost-effective way for homeowners to integrate smart devices, such as lighting, security systems, and climate controls, into their current setups. The flexibility and affordability of retrofits are driving their popularity in the expanding smart home sector.

Smart Home Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Smart Home Market Regional Analysis

North America dominates global smart home industry. North America is expected to develop at a rapid rate throughout the projected period due to rising demand for home health care and continued technological improvements in the region. The presence of a high number of market players in the region is projected to drive regional market expansion. The rapid adoption of IoT is the major driver driving the growth of the regional smart home market.

Asia-Pacific expected to be the fastest revenue-generating region in the global smart home industry. Countries like China, Japan, and South Korea are early adopters of smart home devices due to strong technology infrastructure and supportive policies. For instance, in August 2022, Samsung Electronics broke ground on a new semiconductor research and development facility in Giheung, Korea, with the goal of reinforcing its position as the industry leader in cutting-edge semiconductor technology. People in the region are interested in smart gadgets for convenience and security. Many local companies also produce these devices, making them more affordable. The growth of technologies like IoT and AI is helping the market expand.

Smart Home Market Players

Some of the top smart home companies offered in our report include Johnson Controls Inc., LG Electronics Inc, Emerson Electric Company, Samsung Electronics Co., Schneider Electric SE, Siemens AG, ABB Ltd., United Technologies Corporation, Honeywell International Inc., and Crestron Electronics, Inc.