Report Overview

Increasing house ownership among millennials, surging demand for home automation systems, high adoption of IoT for smart homes, and growing focus on safety and security are projected to drive the expansion of Saudi Arabia Home Automation Market at a double-digit CAGR during forecast period 2022 and 2028.

Saudi Arabia Home Automation Market - Industry Trends & Forecast Report, 2028

 

Saudi Arabia Home Automation Market size is expected to expand at a significant CAGR of 15.6% during the forecast period between 2022 and 2028. Major growth factors for Saudi Arabia home automation market include increasing consumer requirement for convenience and a customized service, rising safety and security awareness, and adoption of cloud-based technology. Recent advancements that directly influence Saudi Arabia home automation market include surging demand for Internet of Things (IoT) in home automation systems, evolution of video-enabled drones, and continuous advancements in security technology products, such as smart cameras. In addition, smart home technology is also known as home automation, as it provides users with comfort, simplicity, security, and energy efficiency through the control of smart devices, which is typically accomplished using a smart home app on their smartphone or similar connected device. Hence, all these above factors are expected to boost the Saudi Arabia home automation market during the period in analysis.

Saudi Arabia Home Automation Market – Overview

Home automation, also known as smart home, is a system that allows users to operate devices, such as alarm systems, electrical outlets, lights, and fans, using a smartphone. The focus of home automation system is on home security, safety, and surveillance, which includes smart locks for doors and windows fire alarms, surveillance equipment, and other sensors.

Saudi Arabia Home Automation Market

Growth Drivers

Increasing ownership among millennials

In Saudi Arabia, the millennials are the largest cohort of first-time homebuyers. They are also more likely than any other generation to own multiple homes. The Saudi Arabia housing market is currently under-supplied, with the number of new housing units not keeping pace with the country’s population growth. This has led to strong demand for homes, particularly among millennials. As more millennials enter the housing market, they are increasingly adopting luxury home automation solutions including artificial intelligence (AI) gadgets, such as Google Home, Alexa, and Siri, and smart lighting to make their homes more comfortable and convenient. Furthermore, the use of these devices reduces energy usage, making them more cost-effective. As a result, the growing demand for energy-efficient gadgets is also expected to drive demand for home automation market in Saudi Arabia.

  Increasing use of home automation systems among the elderly population   

The adoption of home automation systems is predicted to rise as the population ages. It is because these systems can bring numerous benefits to the senior population, such as better safety, independence, and quality of life. Furthermore, the integration of home automation systems with healthcare equipment, such as monitoring and diagnostic tools, simplifies caregiving for the elderly and unwell. Smart technology allows for hands-free control while also reducing the use of small cell phone screens. As a result, home automation gadgets controlled by AI-voice assistants are gaining popularity among the elderly, which is expected to expand the home automation market in Saudi Arabia. 

Restraints

High initial investments

Consumers are increasingly becoming aware of the benefits of cutting-edge technologies, such as machine learning, AI, and IoT, that improve the efficiency and simplicity of home automation systems. However, they are skeptical of investment in products and appliances because the returns might take a year or more. As a result, demand for these gadgets is low, particularly in low- to middle-income economies. Because of its expensive price, the demand for home automation is anticipated to be restricted among consumers with lower disposable incomes.

Impact of COVID–19 on Saudi Arabia Home Automation Market

COVID-19 pandemic has a detrimental impact on Saudi Arabia home automation market because of temporary closure of manufacturing plants, limited production unit and limited presence of staff. During the first quarter of 2020, the home automation market has witnessed a drastic fall in their production along with supply disruptions. Furthermore, pandemic also had an impact on consumer shopping behavior and habits. Despite spending a significant amount of time at home, consumers are more concerned with purchasing necessities than IoT devices. The declining enthusiasm in purchasing consumer IoT devices was anticipated to stifle market growth during the COVID-19 pandemic. However, the lockdown norms boosted the home automation product demand due to stay-at-home restrictions consumers’ preferred home energy-saving smart devices to monitor energy consumption and reduce their utility bills. In addition, increase in usage of smart TV and streaming sticks with voice commands have further boosted the home automation market.

  Saudi Arabia Home Automation Market

Segmental Coverage

Saudi Arabia Home Automation Market - By Component  

Based on component, Saudi Arabia home automation market is bifurcated into product and services. The product segment is further divided into security & safety, HVAC, wellness monitoring, smart appliances, smart entertainment, and smart lighting. Similarly, the services segment is subdivided into consulting, installation or implementation, support & maintenance. The product segment is predicted to lead the market and to grow at the fastest CAGR due to increased focus on developing and producing smart home gadgets. Security and safety are predicted to hold the highest market share due to monitoring solutions. Smart cameras, doorbells, gas detectors, and theft alarm are projected to drive the growth of the security and safety systems segment.

Saudi Arabia Home Automation Market - By Technology

On basis of technology, Saudi Arabia home automation market is divided into Wired and Wireless. The wireless segment holds a higher market share in the market due to its customization capabilities and can work on multiple devices at same time. The smart property systems, such as Google Home Hub or Apple Homekit work on wireless networks.

Saudi Arabia Home Automation Market – By Application

On basis of application, Saudi Arabia home automation market is categorized into Lighting, Safety & Security, HVAC, and Entertainment. The lighting segment holds the highest share in the market during the forecast period due to sustainability and eco-friendly features including adjusting brightness based on daylight availability to save energy. In addition, the smart city technology is predicted to include dynamic lighting that turns off in the absence of a person or movement of any vehicle.

Competitive Landscape

Saudi Arabia Home Automation Market is fiercely competitive. Prominent players in the market include UpLogica’s, Fastnet IoT, Mayar Technologies, Automation United, Schneider Electric Saudi Arabia, Atlanta Network, Arabian homes (AHC), Smart Homes, Mixwell, Automated Buildings, Saudi Controls Limited, Arenco Co., and Legrand KSA. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, market initiatives, mergers and acquisitions, and other collaborative activities.

Recent Developments

• In March 2017 – Philips Lighting Saudi Arabia signed a strategic distribution deal for its LED (light-emitting diode) and home consumer offerings with Ahmed Abdulwahed Trading Company.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2018–2021
	Base Year – 2021
	Estimated Year – 2022
	Forecast – 2022–2028
Facts Covered	Revenue in USD Million
Market Coverage	Saudi Arabia
Product/ Service Segmentation	Component, Technology, Application
Key Players	UpLogica’s, Fastnet IoT, Mayar Technologies, Automation United, Schneider Electric Saudi Arabia, Atlanta Network, Arabian homes (AHC), Smart Homes, Mixwell, Automated Buildings, Saudi Controls Limited, Arenco Co., Legrand KSA.

 

By Component

• Product

• Services

By Technology

• Wired

• Wireless

By Application

• Lighting

• Safety & Security

• HVAC

• Entertainment

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Home Automation Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing house ownership among millennials
         2. Increasing use of home automation systems among the elderly population
         3. Surge in popularity of IoT for smart homes
         4. Increasing safety & security concerns
      2. Restraints
         1. Lack of awareness
         2. High initial investments
      3. Opportunity
         1. Increasing adoption of automated services
         2. Rapid urbanization
      4. Challenges
         1. Decline in home automation shipments due to COVID-19
         2. Compatibility issues with the integration of home automation systems from different manufacturers
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Home Automation Market Overview
   1. Market Size & Forecast by Value & Volume, 2018–2028
      1. By Value (USD Million)
      2. By Volume (Billion Units)
   2. Market Share & Forecast
      1. By Component
         1. Product
            1. Security & Safety
            2. HVAC
            3. Wellness Monitoring
            4. Smart Appliances
            5. Smart Entertainment
            6. Smart Lighting
            7. Others
         2. Services
            1. Consulting
            2. Installation or Implementation
            3. Support & Maintenance
      2. By Technology
         1. Wired
         2. Wireless
      3. By Application
         1. Lighting
         2. Safety & Security
         3. HVAC
         4. Entertainment
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Home Automation Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. UpLogica's
   2. Fastnet IoT
   3. Mayar Technologies
   4. Automation United
   5. Schneider Electric Saudi Arabia
   6. Atlanta Network
   7. Arabian homes (AHC)
   8. Smart Homes
   9. Mixwell
   10. Automated Buildings
   11. Saudi Controls Limited
   12. Arenco Co.
   13. Legrand KSA
   14. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation

 

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

 

List of Figures

 

Figure 1  Saudi Arabia Home Automation Market Segmentation

Figure 2  Saudi Arabia Home Automation Market Value Chain Analysis

Figure 3  Company Market Share Analysis, 2021

Figure 4  Saudi Arabia Home Automation Market Size, By Value (USD Million), 2018–2028

Figure 5  Saudi Arabia Home Automation Market Share, By Volume (Billion Units), 2018–2028

Figure 6  Saudi Arabia Home Automation Market Size, By Component, By Value, 2018–2028

Figure 7  Saudi Arabia Home Automation Market Share, By Component, By Volume, 2018–2028

Figure 8  Saudi Arabia Home Automation Market Size, By Technology, By Value, 2018–2028

Figure 9  Saudi Arabia Home Automation Market Share, By Technology, By Volume, 2018–2028

Figure 10 Saudi Arabia Home Automation Market Size, By Application, By Value, 2018–2028

Figure 11 Saudi Arabia Home Automation Market Share, By Application, By Volume, 2018–2028

 

List of Tables

 

Table 1       Saudi Arabia Home Automation Market Size, By Component, By Value, 2018–2028

Table 2       Saudi Arabia Home Automation Market Size, By Component, By Volume, 2018–2028

Table 3       Saudi Arabia Home Automation Market Size, By Technology, By Value, 2018–2028

Table 4       Saudi Arabia Home Automation Market Size, By Technology, By Volume, 2018–2028

Table 5       Saudi Arabia Home Automation Market Size, By Application, By Value, 2018–2028

Table 6       Saudi Arabia Home Automation Market Size, By Application, By Volume, 2018–2028

Table 7       UpLogica's Company Overview

Table 8       UpLogica's Financial Overview

Table 9       Fastnet IoT Company Overview

Table 10      Fastnet IoT Financial Overview

Table 11      Mayar Technologies Company Overview

Table 12      Mayar Technologies Financial Overview

Table 13      Automation United Company Overview

Table 14      Automation United Financial Overview

Table 15      Schneider Electric Saudi Arabia Company Overview

Table 16      Schneider Electric Saudi Arabia Financial Overview

Table 17      Atlanta Network Company Overview

Table 18      Atlanta Network Financial Overview

Table 19      Arabian homes (AHC) Company Overview

Table 20      Arabian homes (AHC) Financial Overview

Table 21      Smart Homes Company Overview

Table 22      Smart Homes Financial Overview

Table 23      Mixwell Company Overview

Table 24      Mixwell Financial Overview

Table 25      Automated Buildings Company Overview

Table 26      Automated Buildings Financial Overview

Table 27      Saudi Controls Limited Company Overview

Table 28      Saudi Controls Limited Financial Overview