Global Statistics Representing Smart Home Market Scenario
A smart home is a home that contains a communication network that links different appliances. It is a home equipped with electronic, lighting, and heating appliances that can be controlled, monitored, as well as accessed remotely with a smartphone or computer. A smart home is capable of learning habits and habitual patterns of the resident and systematically, adjusting the home control system to streamline daily tasks.
The rapid adoption of smartphone devices, growing penetration of internet users, awareness regarding energy-saving, and low carbon emission solutions are driving the demand for the smart home market. Energy-efficiency is a crucial element in reducing the carbon footprint. The introduction of innovative wireless technologies for home automation, including HVAC controllers, entertainment controls, and security and access regulators is driving the demand for smart homes. HVAC controllers offer functionality within a home. For instance, according to Forbes, in 2016, 29 million thermostats (HVAC controllers) were sold worldwide, and 7 million of those were smart thermostats. Besides, the growing adoption of cloud-based technologies and IoT is further fueling market growth.
Amazon’s Alexa and Google’s Google Home are among the digital giants of the global smart home market. Numerous players are instigating virtual assistance to endure in this cut-throat market competition. According to BCG, in 2016, USD 2 billion were invested in smart home technology research.
The global smart home market is expected to grow at CAGR of 12.02% during the forecast period, 2019–2026.
Entertaintainment Segment to Witness the Most Prominent Growth
On the basis of product, the market is segmented into lighting control, HVAC, entertainment, smart speaker, home healthcare, security & access control, smart kitchen, home appliance, and smart furniture. The entertainment segment holds the largest share of the global smart home market. The entertainment segment encompasses smart TVs, streaming sticks, and set-top boxes. The entertainment control system used in a smart home includes audio, volume, and multimedia room controls; the convenience offered by these control systems is bolstering market growth. An entertainment control system helps in centralizing all connected devices and listening to and watching and controlling them from any room.
North America and Europe to Readily Welcome Smart Home Technology
North America holds the largest share of the global smart home market. Countries in the region, including the U.S., Canada, and Mexico, are embracing smart home technology. According to Houseware.org, the U.S. smart home market will reach USD 40 Billion by 2020. Europe is witnessing considerable growth in the smart home market. In terms of adoption of smart home technology, the U.K., France, and Germany are frontrunners in Europe, followed by Italy and Spain.
Expanding Urban Population and Changing Lifestyles to Spur Market Growth in Asia-Pacific and LAMEA
Population growth, urbanization, and steady economic growth are expected to be the key factors driving market growth in Asia-Pacific. The region is considered as a huge market for smart homes, owing to the considerable implementation rate for products such as entertainment and control systems. For instance, Xiaomi, which debuted in the smart TV market in the first quarter of 2018, tripled its shipments in 2018 Q2.
The Latin America and the Middle East & Africa (LAMEA) region holds the least market share; however, changing lifestyles and growing awareness about energy optimization are expected to drive demand in the coming years.
Some of the key players in the global market are Amazon, Inc. (U.S.), Apple Inc. (U.S.), Google (U.S.), Ingersoll-Rand PLC (Ireland), ABB (Switzerland), Legrand S.A. (France), GE (U.S.), Comcast Corp. (U.S.), Hubbell Inc. (U.S.), Samsung Electronics Co., Ltd. (South Korea), ADT (U.S.), Robert Bosch GmbH (Germany), ASSA ABLOY (Sweden), ABB Ltd. (Switzerland), LG Electronics (South Korea), Sony (Japan), Control4 Corp. (U.S.), Lutron Electronics Co. Inc. (U.S.), Vivint (U.S.), and Axis Communication AB (Sweden).
The Report Covers
Smart Home Market Segmentation