Smart Home Market size to increase by USD 133.01 billion between 2022 to 2027, Market Segmentation by Application and Geography, Technavio

NEW YORK, April 16, 2024 /PRNewswire/ -- The global smart home market size is estimated to grow by USD 133.01 bn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of almost 18.36% during the forecast period. The smart home market is expanding, with vendors innovating in energy management, lighting, temperature control, home entertainment, and safety/security systems. Incompatibility between devices can cause Wi-Fi connectivity and video streaming issues. Proactive software, machine learning, and AI are key to resolving compatibility problems. Key smart home technologies include modular kitchens, solar inverters, smart electrical panels, EV chargers, connected outlets, and light switches. IoT platforms and 5G technology facilitate seamless connectivity for IoT devices. However, cyberattacks and security threats pose challenges.

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The Application segment emerges as the fastest-growing segment in the smart home market

The smart home market in 2022 is dominated by the wireless segment, which includes Wi-Fi, Bluetooth, ZigBee, and Z-Wave technologies. Home monitoring, energy-saving, and convenience are key drivers in the smart home industry. Wi-Fi technology facilitates home automation, energy management, and security, with applications in thermostats and home monitoring systems. ZigBee, a smart home automation protocol, is used for monitoring and controlling devices worldwide, despite higher prices compared to other technologies. The smart home market offers various solutions for safety, security, and energy efficiency. These include lighting controllers, temperature control systems, audio/video systems, intrusion detection, and access control systems. Compatibility issues between different control systems and IoT devices can be addressed through proactive software and behavioral versions. Modern kitchens are becoming smarter with house batteries, high-power solar inverters, smart electrical panels, and EV chargers. Connected electrical outlets, light switches, and smart speakers are essential components of a connected home. The rise of IoT devices, 5G technology, and machine learning/artificial intelligence in the smart home industry is transforming the way we live. However, cyberattacks and security threats are concerns that need to be addressed, with standalone smart devices, cameras, smart lights, streaming devices, and dishwashers all potential targets. Digital assistance and virtual assistants are becoming increasingly popular for controlling smart home features through smartphones.

The North American smart home market is the largest and most dynamic segment of the global market, driven by consumer preference for home automation and increasing disposable income. By 2022, smart home penetration in North America is projected to reach 52%, fueled by proactive software and behavioral versions of modular kitchens, house batteries, high-power solar inverters, smart electrical panels, EV chargers, connected electrical outlets, and light switches. Smart speakers, Modular Switches, and IoT platforms facilitate IoT connections, enabling 5G technology and AI-driven devices such as cameras, smart lights, streaming devices, dishwashers, and smart thermostats. However, cyberattacks and security threats pose challenges to the market's growth, with standalone smart devices, CCTVs, and smart surveillance systems requiring robust security measures. The integration of AI, digital assistance, virtual assistants, Bluetooth speakers, blockchain, and smart TVs further enhances the entertainment experience. Semiconductors play a crucial role in reducing carbon emissions and mitigating the impact of global warming. Smart features in smartphones and appliances, such as theft prevention and burglary alerts, ensure peace of mind for homeowners.

Commenting on the market trends, a Senior Analyst of Technavio, stated," The smart home market's growth potential drives vendors to form strategic partnerships for product development. Smart home manufacturers collaborate with tech providers, automation platform providers, and others to ensure interoperability. Notable partnerships include Samsung's with ABB Group for SmartThings integration in more homes. Key products include Bluetooth speakers, CCTVs, smart thermostats, and more, addressing safety, security, convenience, and energy savings."

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Analyst Review

The Smart Home Market is experiencing significant growth, driven by the increasing demand for home monitoring, energy-saving solutions, and the integration of advanced technologies. The smart home industry encompasses various sectors, including safety and security, convenience, lighting, temperature control, audio/video systems, and more. IoT platforms and 5G technology facilitate IoT connections between various smart devices, such as cameras, smart lights, streaming devices, dishwashers, and more. Machine learning and Artificial Intelligence (AI) are integral to these systems, enabling features like voice commands, digital assistance, and virtual assistants. However, with the increasing number of IoT devices comes the risk of cyberattacks and security threats. It is crucial for manufacturers and users to prioritize security measures to protect against intrusions and safeguard privacy. Bluetooth speakers and other entertainment devices are also popular additions to smart homes, enhancing the overall user experience.

Market Overview

The Smart Home Market is experiencing significant growth with various technologies coming to the fore. Home automation systems, such as those for controlling temperature, lighting, and security, are becoming increasingly popular. Devices like Amazon Echo and Google Home are revolutionizing the way we interact with our homes. Smartphones and voice commands are making home management more convenient than ever. Companies like Modular Home Systems and Carbon Fibre Technologies are leading the charge in this sector. Devices like thermostats, cameras, and door locks are being connected to the internet to create a more secure and efficient living environment. The use of artificial intelligence and machine learning is also on the rise, enabling homes to learn and adapt to their occupants' needs. The future of the smart home market is bright, with innovations in energy management, health monitoring, and entertainment systems set to transform the way we live.

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About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio