Global Smart Home Automation Market by Component ( Hardware, Software and Services ), By Technology ( Wireless and Cellular), By Application (Entertainment Security Lighting & Energy HVAC Smart Appliances Others), By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa); Trend Analysis, Competitive Market Share & Forecast, 2016-26
- Published Date: April 2020
- Report ID: BWC20041
- Available Format: PDF
- Page: 171
Global Smart Home Automation Market Forecast and Trends
Global Smart Home Automation Market has gained the momentum in recent years with a CAGR of 14.62%, in value terms, over the forecast period 2020-2026, and expected to reach at USD 108.56 Billion by 2026. One of the major factors expected to drive the market for smart home automation over the forecast period is a increasing demand for digital features such as remote operating convenience where they have access to technologically advanced devices, particularly in developed economies. With the introduction of the Internet of Things (IoT), the development of connected next-gen systems and the proliferation of smartphones and devices worldwide, the home automation market is projected to increase with a double digit growth pace.
People across the globe are going through many lifestyle changes. Through disposable income, growing preference for high and technologically advanced living standards are pushing people to increasingly adopt smarter devices. Among other things, people are rapidly buying smart TVs, tablets, lighting solutions and refrigerators to raise their living standards. These high adoption of smart devices thus boosts the growth of the global smart home automation market
Prevention of intrusion, identification of threats to safety, and compensation for theft, damage, or injury have served as the main factor in growing security system demand. Global electronic security market leading vendors concentrate on investments to sustain their security network's position in the global electronic security industry.
Global Smart Home Automation Market: Overview
Smart Home" describes building automation in a private home, where single components (sensors and actuators) are networked to create a smart device.
Home automation "refers to automated and electronic monitoring of devices application and appliances of the household. In general, user can easily monitor home's utilities and amenities over the Internet to make life more comfortable and safe, and even spend less on household bills.
Smart home technology, also often referred to as home automation or domotics (from the Latin "domus" meaning home), offers homeowners security, comfort, convenience and energy efficiency by allowing them to monitor smart appliances, often via a smart home app on their smartphone or other networked device. Part of the Internet of Things (IoT), smart home systems and devices also work together, sharing customer data and automate behavior based on the preferences of homeowners.
Increasing Demand for Energy Efficient Solutions
The ability to achieve energy efficiency is one of the most important factors for increasing adoption of any electronic product or system. Contemporary home automation systems have become highly energy efficient with technical advancements combined with knowledge of the advantages of saving electricity. Which helped to fuel market growth in the recent years.
Products for smart home automation such as smart meters and smart thermostats evaluate the amount of electrical energy used by electrically driven devices in homes can be operated on a timely basis and even from remote locations. Electricity consumption is measured in billing units (kilowatt / hour), in which regular electric meter readings produce billing cycles based on the electricity consumed over a cycle. Residents can better understand the past, current, and future usage of energy using a real-time method for electricity metering. This helps them to maximize their energy consumption and therefore reduce the associated costs.
The Increasing Awareness and Rapid Adoption of Smart Home Devices
The smart home automation market is rising rapidly due to its high benefits, the frenzy of automation and the security it offers to the customers. Moreover, increasing awareness of smart home technology as a result of market players 'initiatives to educate consumers, such as ads and videos supported by Amazon, Google etc.
Growing use of mobile phones also supports market growth in smart home automation, as it is one of the key gadgets that helps to incorporate smart home technology. Due to its high diverse applications and people's inclination towards technology adoption, one or two smart devices are now very popular in urban homes.
Increasing use of smartphones also complements market growth in smart home automation, as it is one of the key gadgets that helps to incorporate smart home technology.
High Installation and Replacement Costs
High installation costs for smart home automation systems are on the higher side and the payback period increases, thus restricting the adoption of these controls in many regions. Pricing fundamentals still apply to smart devices, and the cost has yet to match in with the budget of the customer. It increases the payback time and thus limits the mass-wide adoption of the systems. This is likely to impede business growth in the coming years.
Popular smart home automation products display the power of price – video doorbells , home automation kits and smart lighting are quickly growing segments within the home automation category, and they are generally accessibly priced. When the price aligns more closely with the cost the consumer associates with the product or behavior, the value act as an restrain to hamper market growth.
Global Smart Home Automation Market: Component
Based on component, the market has been segmented into hardware, software and service. The hardware segment is anticipated to dominate the component market by 2026. The Hardware segment is expected to see substantial growth as the smart home automation technology is gradually being adopted. Rapid developments in the smart home automation framework and the use of these technologies to add value to the delivery of urban services require the authorization to implement new approaches sustainably. This could include combining hardware, software, and service that would increase the competitiveness of the market in which the smart home automation system operates.
Global Smart Home Automation Market: By Technology
Based on technology the global smart home automation market is segmented into Cellular & Wireless. Amidst the category Wireless segment projected to dominate the global market with the market size of USD 26.22 Billion in 2019, and anticipated to reach USD 68.10 Billion in 2026 at a CAGR of 14.72% during 2020-2026Smart appliances, including smart air conditioners, refrigerators, and washing machines, are fitted with advanced technology that helps with low energy consumption features to operate smartly. Factors, such as major technological development including cellular and networking technology, the Internet of Things (loT) and others will drive market growth. The growing need for value-based and on-demand home appliance solutions emerges as cloud-based smart home applications are gradually being adopted.
Global Smart Home Automation Market: By Application
Across the globe, owing to the increasing government regulations across developed and developing countries, most of the new buildings need smarter heating and cooling systems, thus augmenting the growth of HVAC systems. Among these, followed by Entertainment & Safety, Lighting & Energy segment expected to sustain significant growth during the forecast period. Rising the expansion of major companies in emerging economies such as Phillips, GE Lightning, Advanced Lighting technology etc. is anticipated to drive the lighting segment in the provided interpretation era. Increasing the adoption of wireless technology is also another factor that contributes to this segment's rise in overall market research.
Global Smart Home Automation Market: Regional Insights
On the basis of geographic segmentation, the global Smart Home Automation market segmented into North America, Europe, Asia-Pacific, Latin America and Middle East & Africa. Amidst the regional segment North America is projected to dominate global market with the market share of 36.15% in 2019. Due to the promotional activities, high rate of adoption and awareness of technological improvement in this region. Moreover, the presence of leading players in this area, including Honeywell International Inc., Acuity Brands, Inc., Johnson Controls Inc., United Technologies Corporation and Crestron Electronics, Inc. etc., is also complementing market growth with their innovative products and promotions. The fact that more than one-third of US consumers have two or more smart home devices indicates North America's growing demand for smart home automation.
The companies that hold the majority share of Smart Home Automation Market are Samsung Electronic Co Ltd . , Schneider Electric SE , ABB Ltd. , Johnson Controls International Plc . , Siemens AG , ASSA ABLOY AB , Legrand SA , Philips Lighting N.V. (Signify) , Resideo Technologies, Inc. (Honeywell) , Crestron Electronics Inc. , and Other Prominent Players.
Ø March 2020: Globally, Bird Home Automation has launched its latest DoorBird IP Video Intercom D1101V. DoorBird IP Video Intercom D1101V is an internet linked smart intercom network, as shown by its branding. More succinctly, the trendy gui is available in two versions, offering in-house or business entry points with two-way intercom functions. This requires integration of the smartphone, laptop and smart home systems and a dedicated indoor interface.
Ø February 2020: Huawei announced its Sound X smart speaker will soon be available in Europe. The speaker was produced in collaboration with French audio expert Devialet, and in November 2019 it went on sale in China. Now the tech giant is poised to push the limits and launch their first ever intelligent speaker outside China. Huawei also markets a range of smart speakers in his home country. The Huawei Sound X sports a rounded-off cylindrical shape and a luxurious feel with a base of fabric and a top of bright plastic.
Scope of the Report
Historical data – 2016-2019
Base Year – 2019
Forecast – 2020 – 2026
Revenue in USD Million/Billion
U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Argentina, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia
Component, Technology and Application with Region
Samsung Electronic Co Ltd . , Schneider Electric SE , ABB Ltd. , Johnson Controls International Plc . , Siemens AG , ASSA ABLOY AB , Legrand SA , Philips Lighting N.V. (Signify) , Resideo Technologies, Inc. (Honeywell) , Crestron Electronics Inc. ,.
By Industry Vertical
Ø Lighting & Energy
Ø Smart Appliances
Ø North America
Ø Asia Pacific
Ø Latin America
Ø Middle East & Africa
The objective of the Study:
Ø To analyze and forecast the global Smart Home Automation Market size of the market in terms of value.
Ø To examine the careful market segmentation and forecast the market size, in terms of value, based on the region by segmenting.
Ø The Global Smart Home Automation Market segmented into five regions, namely, North America, Europe, Asia Pacific, Latin America, Middle East & Africa and their leading countries.
Ø To outline, categorized, and forecast the global Smart Home Automation Market based on Component, Technology and Application.
Ø To examine competitive developments like technological advancement, services, and regulative framework within the global Smart Home Automation Market.
Ø To highlight the impact analysis of the factors affecting the market dynamics such as drivers, restraints, opportunities, and challenges.
Ø To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.
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