According to estimates, the global market for smart home automation would increase from US$ 72 billion in 2022 to US$ 168 billion in 2032, with a CAGR of 8.84% between those two years. The Internet of Things (IoT) is becoming more widely used, and as a result, machine-to-machine communication has advanced, encouraging customers to use smart home automation technologies.
The need for smart devices is anticipated to increase in the near future due to the integration of modern technologies like IoT, AI, and ML. A poll by Voicbot.ai estimates that 87.7 million US consumers were using smart speakers in January 2020. Additionally, the number of smart city initiatives is expanding globally, which is driving up demand for home automation companies.
With access to home accessories from remote locations, users can regulate their home appliances in their absence. They can also keep a watch on any activity taking place within the house through video surveillance systems. For instance, in February 2022, India-based home automation company, One Switch, announced the launch of franchising options for the expansion of their smart home automation services.
The eco-friendly solutions such as automatic water sensors and motion sensors, offered by smart home companies like One Switch, have also helped in reducing electricity bills and enhancing the overall home environment.
The automation tools and equipment are expensive, thus, users with average or below average disposable income find it challenging to buy such modern services. Due to its high cost, there is polarization in the procurement of such advanced equipment. Thus, the cost barrier is anticipated to play a significant role in limiting the market growth during the forecast period. Further, various users are yet not well familiar with such technology which limits the adoption of smart home automation devices. Thus, the complicated technologies and applications are likely to inhibit the market growth in the assessment period.
Key Takeaways from the Market Study:
- Global smart home automation market value to surge 2.3x from 2022 to 2032
- By application, smart home automation for entertainment to experience a CAGR of 7.8% until 2032
- Wireless smart home automation to be most sought after, expected to accumulate 44% revenue in 2022
- North America to emerge as the fastest growing market, expanding at an 8% CAGR
- Europe to be the 2nd largest market for smart home automation, inclining at a 7.7% CAGR
- Asia Pacific to present significant growth opportunities, reflecting a 7.5% value CAGR
“Increasing demand for comfort and growing deployment of modern technologies such as AI, ML, and IoT in home appliances is expected to benefit the market during the forecast period. Also, increasing disposable income of developing countries is likely to offer several opportunities of expansion to the players in the market,” says an FMI analyst.
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Competition Analysis
Key players in the global smart home automation market include Control4 Corporation (U.S.), BB Ltd. (Switzerland), Crestron Electronics, Inc. (U.S.), Ingersoll-Rand plc (Ireland), Honeywell International Inc. (U.S.), Johnson Controls (U.S.), Leviton Manufacturing Company, Inc. (U.S.), Legrand SA (France), Lutron Electronics Co., Inc. (U.S.), Schneider Electric (France), and Siemens AG (Germany).
Recent Developments in the Industry include:
- In July 2022, Schneider Electric launched the Wiser App to create awareness about the potential of Wiser Smart Homes. The app requires minimal rewiring and has the ability to support Google Home Assistant and Alexa which offers the needed comfort to consumers on a regular basis.
- In July 2020, Johnson Controls, a renowned player for smart and sustainable buildings, launched OpenBlue, a complete suite of connected solutions and services that combine the Company’s 135 years of building experience with modern technology. The new suite of connected solutions allows previously unimaginable occupant experiences, respectful safety and security, and impactful sustainability, driven by cutting-edge connected technology.
More Valuable Insights
Future Market Insights, in its new offering, presents an unbiased analysis of the global smart home automation market, presenting a historical analysis from 2017 to 2021 and forecast statistics for the period of 2022-2032.
The study reveals essential insights on the basis of Component (Hardware, Software, Services), Technology (Cellular, Wireless, Other), Application (Security, Lighting, Entertainment, HVAC & Energy Management, Smart Kitchen), & Region.
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