Smart home products help users manage daily tasks and aid home security by providing safety control solutions deployed across the premises. These appliances can be operated and monitored remotely using devices such as laptops, tablets, and smartphones. Automated consumer electric appliances within the households strengthen a wide range of customer base for or global market. The security solution devices, such as alarm systems, connected cameras, and smart locks, provide security solutions for housing and residential buildings with a high degree of automation.
The global smart home products market is expected to grow from USD 64 billion in 2019 to USD 204.1 billion in 2029 at a CAGR of 12.8% during the forecast period.
According to the statics published by the World Health Organization, the geriatric population is expected to double from 12% in 2015to 22% by 2050. Due to the significant upsurge in the geriatric population, governments across the globe are anticipated to make hefty investments in the healthcare and medical infrastructure. The increasing cost incurred for healthcare services, such as clinical care and prescription drugs, has created an imbalance in providing healthcare services to every individual. Thus, the rising aged population is anticipated to drive the market growth.
The cost associated with healthcare services is increasing continuously due to the surging prices of prescription drugs, diagnostic tools, and in-clinic care. Consequently, existing healthcare services are intended to impose a significant burden on the population of most countries. Hence, the population is adopting smart home healthcare devices to monitor the elderly in homes. Smart homes that contain actuators, sensors, wearable medical sensors, and modern communication and information technologies enable continuous and remote monitoring of the elderly.
Remote health monitoring offered by smart home healthcare devices helps users to remain in the comfort of their homes instead of being admitted to expensive nursing homes or hospitals. Hence, it is anticipated that the rising geriatric population, as well as the rising healthcare expenditures, can significantly contribute to the market growth.
According to the Federal Bureau of Investigation (FBI), the estimated number of property crimes in the U.S in 2018 was 7,196,045 cases. These incidences are anticipated to increase further and hence, the demand for a smart and intelligent security system in houses is rising significantly. Nowadays, intruders are more advanced and are carrying out burglaries with the help of gas-cutter and other equipment. The traditional security systems can be easily disconnected from CCTV cameras. Hence, the house owners are increasingly adopting smart home security devices.
Smart homes are equipped with an integrated framework of sensors, cameras, and customized hardware to analyze unauthorized access. Smart home cameras can send alerts to the owners in case of unauthorized access. House owners can monitor and lock doors and access other security devices through smartphones. Smart home locks provide two or three-factor authentication which strengthens the security. Hence, it is anticipated that the smart home products for home security will gain traction and further boost the market growth during the forecast period.
Many customers using smart home solutions are unaware of the mode of operation, creating severe privacy issues. For instance, some smart home devices allow turning off the microphones and location settings, and users can be unaware of the feature. Smart home company’s continuously enhance and upgrade the product features to meet the increasing security demands. However, they do not thoroughly research and understand the technical challenges faced by their customers. This leads to user frustration, device abandonment, and other similar issues that are expected to hinder the market growth. However, companies can overcome this by increasing awareness among the users and guiding them through the product and the regular updates.
The pandemic wreaked havoc on the smart home products market. The temporary shutdown and the restrictions on international and domestic travel created a large-scale impact. It leads to impaired production capability and restricting new deployments. The effect on the construction sectors has also contributed to the market hindrance.
The hardware segment dominates the software segment in the market growth. Heating, ventilation, and cooling (HVAC) control the indoor temperature and airflow across the residential buildings. HVAC is a prominent source of energy consumption; however, using the smart home product, the customers can easily adjust or turn off HVAC operations and manage the total power consumption using the smart home management solutions. Smart thermostats utilize occupancy sensors to turn off the HVAC system automatically when not in use. The system uses cost-efficient and simple sensors that are installed across the residence.
Smart HVAC systems enable temperature balancing, and the sensors record temperature and humidity readings in each room before connecting to the home’s thermostat. Ceiling fans with smart functionality offer comfort to a resident. A combination of embedded sensors, including motion, humidity, and temperature, monitor room conditions and adjust the fan’s speed. Smart ceiling fans are wireless and can integrate with other smart devices like smart thermostats and smart speakers for centralized control.
Smart water heater controls and prevents unnecessary heating of water. It utilizes analytics to understand the household water use patterns and heats water accordingly. During periods of inactivity, the water heater pauses, and the temperature deviates within an acceptable range.
North America is anticipated to emerge as a leader in the global market. The adoption of technologically advanced solutions by the regional population contributes to market growth. North America is anticipated as a region pioneered in the adoption of automation solutions.
The presence of prominent players is expected to pave the way for the sale of smart home solutions. Global players such as Amazon, Google ad Apple are providing numerous opportunities for the regional market. The tier-1 market players are engaged in making robust investments in the research and development operations. Considerable increase in mass media advertising and leading retail chains, including Target and Wall-Mart, are sell smart home products in their stores that can bolster the regional market growth during the forecast period.
High healthcare expenditure per capita in countries, including the U.K, Germany, and France, is accelerating smart home healthcare device adoption. Smart home healthcare devices are considered of high social relevance, for individual citizens and the German health sector.
Various government initiatives to minimize the energy expenses in the European region are expected to aid the market growth. The European directive 2009/28/EC mandates the U.K. to meet 15% of all energy consumption from renewable energy sources. Governments are encouraging the adoption of smart household devices to remain compliant with these mandates which are anticipated to contribute to regional market growth.