Increasing Geriatric Population is One of the Major Factors Driving the Smart Home Products Market

Introduction

According to the research study by the World Health Organization, it is anticipated that the proportion of the worlds’ population aging over 60 years will double from about 11% to 22% between 2000 and 2050. The increasing geriatric population will further prompt the need for better healthcare. However, the healthcare expenditure in various countries is rising at an alarming rate. The cost associated with present-day healthcare services is increasing continuously due to the surging prices of prescription drugs, diagnostic tools, and in-clinic care. For instance, investments in healthcare sectors increased by a massive USD 11.5 billion in the 2017 budget of Ontario, Canada.

However, the millennial population has a penchant for technological advancements and is continuously moving towards smart products and devices. In contrast, the generation X and baby boomers are anticipated as not that much technologically advanced when compared to the millennial. The disconnection between the users and their experience with technology increases the smart home privacy issues and is one of the major factor which might hamper the growth of smart homes product market.

Hardware segment is expected to grow at the highest CAGR during the forecast period, owing to the growing usage of hardware products in the smart homes market. Heating, ventilation, and cooling (HVAC) is the largest source of residential energy consumption. The energy can be saved by turning off the HVAC systems when the residents are sleeping or away from the house. However, typical residents will not manually adjust the thermostat levels and programmable thermostats are too tricky for most people to use effectively.

The entertainment segment is expected to grow at the highest CAGR during the forecast period, as, with the rise in technology, smartphones are gaining momentum at a staggering rate.  Everyone cannot afford smart TVs, owing to its price, and hence many of them are shifting to smartphones which are affordable when compared to televisions. According to the research study by Deloitte, it is foreseen that global smartphone sales will reach 4.6 billion by the end of 2019. Moreover, competition among the manufacturers is growing fierce as all market players are striving to provide cost-effective products to increase sales. Furthermore, smart speakers are able to answer the questions of the users, control smart home devices and also help in managing the personal information and schedules.

Regional Segment Analysis

North America accounted for the largest market share in 2018, and is expected to dominate the market during the assessment period. Increasing concerns for home security among the people due to rising thefts and attacks are contributing to market growth in the U.S. According to a research study by the U.S. Federal Bureau of Investigation, around 8,277,829 property crime offenses were registered in 2014. With the rising rate of property crime offenses, demand for smart homes and security in the country is anticipated to increase at a robust pace. Home security concerns aren’t new, but the modern connected devices are more convenient and secure, and this makes the owners deploy these systems at an increasing rate. Products such as smart locks, security cameras, and others send automatic notifications and alerts to the customers’ smartphone and hence it is considered to be an integral part of the smart homes in the U.S.

Competitive Players

1. Resideo Technologies
2. Siemens
3. Johnson Controls
4. Schneider Electric
5. UTC
6. Amazon
7. Google
8. Apple
9. ADT
10. Bosch
11. ASSA Abloy
12. Legrand
13. ABB
14. Ingersoll Rand
15. Comcast
16. Hubbell
17. Vivint

Recent Developments

• March 2024- The Home Depot is broadening its range of smart home appliances by introducing a number of products that are operated via the Hubspace app. The Hubspace app was introduced in 2021, and Home Depot has been progressively providing smart home products to a wide audience ever since.
• March 2024- Homematic IP introduced the Lightstrip Set (2m) and Lightstrip (1m) products. eQ-3 showcased its intelligent lighting solutions at the Light + Building 2024 event in Frankfurt, along with other smart home products.

Segmentation

1. By Type
   1. Hardware
   2. Software
2. By Applications
   1. Entertainment
   2. Health
   3. Security