The smart home market was initially concerned primarily with advanced security features. However, the market has now ventured into newer segments such as lighting systems, fire detection, energy efficiency systems, gas leakage detection, and entertainment. This has propelled the growth of the market.
Smart homes are backed by computing devices and information technology that integrate various devices in the house to facilitate enhanced convenience, comfort, security, and entertainment in a sustainable way. Previously smart homes were confined to elite class consumers; however, in recent years, smart homes have gained widespread consumer adoption.
The smart home market is experiencing increased demand from all quarters; however, energy conservation has been the key factor in influencing the growth of the market. Moreover, the maintenance of smart homes is cheaper than traditional homes. Other factors substantiating the growth of the smart home market include increasing affordability of smart home features, the threat of climate change, and the growing adoption of cloud-based technologies.
Top Drivers and Key Barriers
With the alarming surge in climate change, instability in electricity prices and the rising adoption of cloud-based technologies along with IoT are some of the top growth inducers in the smart home market. All across the globe, the need to tackle security issues has mounted significantly in recent years, fueling the need for smart home market.
Furthermore, the emergence of the latest wireless technologies like security and access regulators, HVAC Controller, and entertainment controls has foster considerable market expansion. With the rapid advancements in Internet of Things (IoT) that has led to price drops of processors and sensors, more and more manufacturers are now offering automation in homes, which also works in favor of the worldwide market.
Well-known companies such as ABB Ltd. And Honeywell International Ltd. are highly focused on developing automated home solutions, which helps expanding their customer base in the market. Most of the companies are also adopting marketing hacks like mergers and acquisitions to design advanced solutions for homes. For facilitating advancements and innovations in smart homes advanced technologies, the Internet of Things and artificial intelligence are being increasingly implemented. For instance, in April 2019, Honeywell International Ltd. carried out a merger with Intel Corporation to come up an innovative security platform for home solutions. This advanced platform is strongly supported by artificial intelligence, which has helped both the parties gain high favor among their customers.
Component, application and technology are the primary segments based on which the research on the smart home market analysis has been conducted in the report.
With respect to component, the market segments specified in the report are software as well as services. The software segment has been narrowed down into proactive and behavioral, while the service segment has been considered for managed as well as professional service.
The application areas are security & access control, lighting control, entertainment & other control, HVAC control, smart kitchen and home appliances and home healthcare.
The technologies studied in the report are protocols, networks and wireless. The types of networks highlighted are GSM/HSPA networks, CDMA networks and LTE networks. The protocol-wise segments are KNX, Digital Addressable Lighting Interface (DALI), Ethernet, Digital Multiplexer (DMX), and others. Wireless segment covers z-wave, Zigbee, Bluetooth, Wi-Fi, and others.
The COVID-19 analysis of smart home market has been segmented into four key regions, namely North America, Rest-of-the-World (RoW), Europe, and Asia Pacific (APAC).
North America accounts for a major share of the market and is likely to dominate the market over the forecast period. The existence of leading market players in the region along with heightened demand for home healthcare has led to the proliferation of the smart home market in North America. Moreover, high spending capacity leads to increased spending on the modernization of homes, which boosts the growth of the market.
The APAC smart home market is slated to showcase remarkable growth over the forecast period. fast track urbanization in the region combined with rising disposable income has created abundant demand for smart homes in the region. Adoption of cloud technologies, the growing sophistication of lifestyle, and heightened focus on safety and security are auguring the growth of the market in APAC. Additionally, governments in the region are investing substantially in the development of smart cities which is propelling the growth of the market.
Johnson Controls, Inc. (U.S.), Samsung Electronics Co., Ltd. (South Korea), Legrand S.A. (France), Schneider Electric (France), Ingersoll-Rand PLC (Ireland), General Electric Company (U.S.), Honeywell International Inc. (U.S.), ABB Ltd. (Switzerland), Siemens AG (Germany), United Technologies Corporation (U.S.), are the leading participants in the market.
Some other market vendors include Leviton Manufacturing Company, Inc. (U.S.), Acuity Brands, Inc. (U.S.), Lutron Electronics Co. Inc. (U.S.), to mention a few.