Home Automation and Controls Market Size, Share & Trends Analysis Report By Type (Home Automation System, Mainstream Home Automation System, Managed Home Automation System), By Technology (Wired Home Automation Systems, Wireless Home Automation Systems, Powerline Home Automation Systems, Computing Network Home Automation Systems), By Application (Lighting, HVAC, Entertainment, Safety and Security, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global home automation and controls market size was valued at USD 51.28 billion in 2021, growing at a CAGR of 10.78%, and is envisioned to reach USD 128.85 billion during the forecast period. 

Home automation allows for the automatic control of electronic devices through a network connection or internet, which also enables the devices to be controlled from a remote location. A home automation system provides automatic and centralized control for various home systems, including those regulating heating, ventilation, air conditioning, lighting, and security and access control. Wi-Fi, Bluetooth, ZigBee, radio frequency (RF), and Z-Wave are communication technologies that connect the various devices that make up these systems to the internet to perform their functions. In addition, home automation devices can connect appliances, switches, and other gadgets to a central hub, allowing users to control the connected devices safely and conveniently.

Commercial real estate, such as public non-residential buildings, is anticipated to have a greater demand for energy-efficient renovations than residential buildings. Aggregated data and robust analytics that add intelligence to existing infrastructure projects have the potential to transform in a manner companies manage energy across their entire real estate portfolio. Its efficient application increases the energy efficiency of buildings. The US government has also made energy-efficient products appealing to security system producers, retailers, distribution companies, and commercial and residential property owners. With so many green product initiatives, the US market is driving global demand and influencing other nations to follow suit. Additionally, the demand for energy-efficient solutions, ranging from intelligent lighting to intelligent HVAC systems, is anticipated to increase. Consequently, the growing demand for energy efficiency drives the market for home automation and controls.

Market Dynamics

Global Home Automation and Controls Market Drivers

Increasing Deployment of Home Automation Systems and Wireless Technologies

Growing usage of wireless technology to control every aspect of a home, including entertainment centers, heating, and lighting, is the primary factor driving market expansion. A typical home is transformed into a smart home by wireless automation technology. Several wireless technologies are utilized in home automation, including Wi-Fi, Bluetooth, radio frequency (RF), ZigBee, Z-Wave, and Infrared. Bluetooth is utilized by numerous devices today, including MP3 players, mobile phones, and personal computers. Some top companies provide smart home appliances compatible with Wi-Fi and Bluetooth networks. Consequently, the increasing adoption of wireless technologies in home automation systems contributes to expanding the home automation and controls market share.

In addition, there is a burgeoning rollout of home automation devices in commercial and industrial buildings and expensive homes, which is anticipated to drive the growth of the home automation and control system market. Smart homes are gaining popularity with the proliferation of the Internet of Things (IoT) applications. Also, security and control systems have become indispensable in large commercial buildings due to rising security concerns. In addition, the rising demand for HVAC control, lighting control, and an improved standard of living is anticipated to increase the global demand for home automation devices. Today, home automation systems are likely to allocate programming and monitoring control between dedicated devices in the home, such as the control panel of a security system and a user-friendly app interface that can be accessed via an Internet-enabled computer, smartphone, or tablet. It is anticipated that the rising penetration of innovative home systems and smart home security will drive the growth of the home automation and controls systems market.

Global Home Automation and Controls Market Restraints

Lack of Interoperability Between Smart Devices

The lack of standardization between devices has been one of the most significant obstacles to providing mid-sized buildings with cost-effective, high-ROI energy management. The interoperability issue arises from the need to connect legacy equipment in buildings with "over the top" (OTT) devices of the next generation, such as sensors and switches. In addition, delivering the data accurately and securely to cloud services or applications for analytics, control, dashboards, and reporting is a more complex process. Different protocols and standards for devices and services have led to integration issues, hindering the global home automation and controls market growth.

Global Home Automation and Controls Market Opportunities

Rapid Urbanization in Asia-Pacific Economies

Emerging Asia-Pacific nations, like India, China, Japan, Indonesia, and South Korea, are experiencing rapid urbanization due to the construction of large structures. This nation's awareness of housing development has created a market for improved housing infrastructure. This would result in the installation of home automation systems in newly built structures. In addition, the construction of large structures would increase the demand for lighting, intelligent HVAC systems, and energy-efficient goods. During the forecast period, rapid urbanization, expanding populations, and widespread acceptance of wireless technologies in developing nations are anticipated to generate lucrative home automation and controls market opportunities.

Regional Analysis

The region-wise segmentation of the global market for home automation and controls includes North America, Europe, Asia-Pacific, and LAMEA. 

Europe and North America Will Dominate the Regional Market

North America will have a share of USD 17.62 billion, growing at a CAGR of 9.37% during the forecast period. North America's well-established automation industry and rapidly rising demand for wireless technology have contributed significantly to developing the global market. In addition, the construction of large complexes and buildings in North America is anticipated to contribute to the market's growth.

Due to the rapid development of smart city projects and the rising demand for advanced technologies, the North American market for home automation systems is expanding at a faster rate. Government approval and the presence of leading nations such as the United States and Canada are expanding their participation in the home automation and controls market. In addition, the presence of leading home automation systems companies, the development of innovation, and significant technological contributions contribute to the global market. In addition, North America's home automation and controls market share is fueled by an increase in consumer awareness of technological advancements and optimized energy consumption.

Europe will command the market with the largest share growing at a CAGR of 10.13% during the forecast period. The convergence of automation technologies and the Internet of Things promotes the implementation of home automation systems across various European market segments. In addition, European businesses have made proactive efforts to raise awareness of home automation and controls.

The increasing prevalence of digital electronic systems and the high adoption of advanced technologies have created numerous growth opportunities for the European home automation and controls market. With the arrival of technologies such as machine learning and artificial intelligence; and capabilities such as automation, the digitalization of energy management and the Internet of Things is strengthening, and European consumers are now demanding innovative smart homes. In addition, smart building construction is gaining popularity in Europe, whereas retrofitting existing structures is relatively costly and challenging. Moreover, among all European nations, Germany has the largest market share due to government measures in the form of subsidiaries. During the forecast period, these factors are anticipated to create a lucrative position for the market growth.

Asia-Pacific will have the highest growth rate during the forecast period. The expansion is attributable to the rapid economic expansion of key Asia-Pacific nations and the succeeding construction industry expansion projections. In addition, Asia-rapid Pacific's urbanization and willingness to adopt smart cities are anticipated to create growth potential for the home automation and controls market share. In addition, Asia-Pacific is quickly becoming a formidable competitor in the home automation industry. During the forecast period, the market is anticipated to expand due to technological advances, particularly in the home appliance and electronics markets.

Segmental Analysis

The global market home automation and controls is based on type, technology, application, and region.

By Type Analysis

Depending on the type, the division includes a home automation system, a mainstream home automation system, and managed home automation system.

The home automation system is expected to hold the largest share during the forecast period growing at a CAGR of 9.15%. Home automation systems automate the control of all electrical and electronic devices in the home, either locally or remotely, via wireless communication. A home automation system facilitates the quick installation and control of a high-end home automation system via mobile phones and tablets. In recent years, advancements in wireless technology and the widespread adoption of smart devices in buildings have led to a surge in home automation and control systems. The infiltration of artificial intelligence and the Internet of Things has advanced smart systems. In addition, communication technology plays a crucial role in the home automation system's remote access capabilities. The home automation and controls market share is anticipated to be driven during the forecast period by implementing home automation systems and adopting wireless technologies.

The mainstream home automation system will hold the second-largest share. With each passing technological advancement, such as the advent of voice assistant technology, one of the elements accelerating the mainstreaming of home automation, home automation becomes increasingly prevalent. The market for mainstream home automation systems is anticipated to be fuelled by the increase in the construction of large buildings in developing nations. In addition, factors such as the growing need for energy conservation, the ease of use, and the ability to retrofit accelerate the widespread adoption of home automation.

By Technology Analysis

Based on technology, the fragments include:

• Wired home automation systems.
• Wireless home automation systems.
• Powerline home automation systems.
• Computing network home automation systems.

The computing network home automation systems are most likely to hold a large proportion of the market during the forecast period growing at a CAGR of 11.85%. Computing networks are the foundation of communication technologies, which are utilized in numerous ways. Computing networking refers to connected computing technology and Internet of Things (IoT) devices that communicate using Wi-Fi technology and various sensors. The market for Wi-Fi-enabled smart devices is driven by the prevalence of Wi-Fi in residential and commercial settings as a wireless connection. Existing Wi-Fi-enabled infrastructure typically employs Wi-Fi connectivity for home automation equipment. In addition, the rising usage of Wi-Fi technology in smart devices is anticipated to generate valuable growth opportunities for the market for home automation and controls.

The wireless home automation systems will hold the second-largest share. Wireless home automation is the process of automatically controlling home appliances using various control system techniques. Various technologies, including IoT, RF, and Bluetooth, may be used to control electrical and electronic home appliances. Increased adoption of wireless technology with increased connectivity and innovative opportunities to create a home automation system to control everything from entertainment centers, heating, and lighting drives the segment.

By Applications Analysis

The fragments include lighting, HVAC, entertainment, safety & security, and others based on applications.

Safety & security is expected to hold the largest market share during the forecast period growing at a CAGR of 10.47%. The safety and security controls system consists of numerous IoT-connected devices designed to protect property from espionage, sabotage, subversion, accidents, and assault. The market's growth is driven by the rise in criminal activities like theft and illegal access to residences. In addition, an increasing number of residential buildings are outfitted with specialized surveillance and security systems that can control electronic components, which drives the market growth for home automation and controls.

HVAC will hold the second-largest share. A control system is required for the heating, ventilation, and air conditioning (HVAC) system. The HVAC system controls the operation of the heating and cooling systems. In recent years, HVAC system advancements have concentrated on the control system. Increasingly precise sensors are being incorporated into HVAC controls. Additionally, there are improved options for automatically controlled systems based on occupancy and building usage.

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments

• In 2022, ABB Ltd opened its largest DC fast charger production in Valdarno, Tuscany.
• In 2022, ADT Inc. announced the purchase of Key-Rite Security.