Global Smart Home Market – Industry Trends and Forecast to 2031

Smart Home Market Analysis and Size

According to a report by the U.S. National Academy of Sciences (NAS), the first decade of the 21st century experienced temperatures 0.8°C (1.4°F) higher than the first decade of the 20th century. These climatic shifts have resulted in an increased demand for electrical cooling systems during summers and, conversely, for natural gas, heating oil, wood, and electrical heating systems during winters. This has created an opportunity for smart HVAC control systems to be implemented in the most advanced heating and air conditioning units in buildings. This will drive the demand for HVAC retrofitting, positively influencing the overall market's growth.

The global smart home market size was valued at USD 149.59 billion in 2023 and is projected to reach USD 773.55 billion by 2031, with a CAGR of 22.8% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

A smart home refers to a residence that uses internet-connected devices to enable the remote monitoring and management of various appliances and systems, such as lighting, heating, air conditioning, security cameras, and other home devices. Smart homes can enhance convenience, energy efficiency, and security by providing homeowners with greater control and automation over their home systems.

Smart Home Market Dynamics

Drivers

• Integration with Smart Home Ecosystems

Smart HVAC systems offer integration with larger smart home ecosystems, providing users with seamless control and automation of their home systems. This integration allows users to manage their heating, ventilation, and air conditioning systems alongside other smart devices from a single platform, such as lighting, security cameras, and appliances. This level of convenience and interoperability is highly appealing to consumers seeking a comprehensive smart home solution. As a result, the demand for smart systems is increasing and driving the market growth.

• Increasing Disposable Incomes

Increasing disposable incomes and evolving lifestyle preferences among consumers are driving the demand for smart HVAC systems. These systems provide advanced control and customization features, enabling users to personalize their home environments according to their comfort preferences. With smart HVAC technology, users can remotely adjust temperature settings, set schedules, and monitor energy usage, providing a higher level of convenience and comfort. As consumers seek to upgrade their living spaces with modern, connected technologies, the demand for smart systems is expected to continue to grow which will drive the market growth.

Opportunities

• Integration with Renewable Energy Sources

Smart HVAC systems can intelligently manage energy usage based on the availability of renewable energy, optimizing efficiency and sustainability. Homeowners can further reduce their carbon footprint and energy costs by combining smart HVAC systems with renewable energy technologies. This integration offers an attractive value proposition for environmentally aware consumers and aligns with the worldwide trend toward adopting renewable energy. The integration with renewable energy sources such as solar and geothermal energy is one significant opportunity for the market.

• Expansion of Smart Cities and Sustainable Buildings

As cities and buildings become smarter and more connected, there is a growing need for intelligent HVAC systems that can adapt to dynamic environmental conditions and user preferences. Smart HVAC systems can play a crucial role in optimizing energy usage, enhancing indoor air quality, and improving overall building efficiency. With the increasing focus on sustainability and energy efficiency in urban planning and construction, the demand for smart HVAC solutions is expected to rise, creating a significant market opportunity.

Restraint/Challenge

• Data Privacy and Security Concerns

Smart HVAC systems collect and process sensitive information about user's behavior and preferences, raising concerns about data privacy and potential security breaches. With these systems becoming more integrated with other smart devices in homes and buildings, the risk of cyberattacks and unauthorized access to personal data rises. Data privacy and security is one of the key challenges for the market.

• High Initial Costs and Return on Investment

Calculating the return on investment (ROI) for smart HVAC systems can be complex, as it depends on various factors such as energy prices, usage patterns, and system efficiency. Despite the long-term energy savings and operational efficiency benefits of smart HVAC systems, the initial cost can present a hurdle for certain consumers and businesses. The high initial costs associated with installing and implementing these systems are a major challenge affecting the market.

This smart home market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the smart home market contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• In January 2023, Panasonic Holdings Corporation announced the development of a highly sensitive hyperspectral imaging technology using compressed sensing. This advancement allows for the detection of subtle color differences, improving image analysis and recognition accuracy while retaining the usability of traditional color cameras. The achievement was published in Nature Photonics in collaboration with IMEC, a Belgian research institute, marking the world's first successful demonstration of efficient hyperspectral imaging with compressed sensingTop of Form
• In January 2022, Samsung Electronics Co., Ltd. collaborated with Oracle Corp. to create intelligent energy solutions for their customers. This partnership involves integrating Oracle's contextual and behavioral energy insights with Samsung's SmartThings products and automation services, aiming to introduce new and valuable features in their product lineup. Key players in the industry are also enhancing the capabilities of smart home products to support their integration into both new construction homes and retrofitted home installations

Smart Home Market Scope

The smart home market is segmented on the basis of product type, technology, software and service, and sales channel. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Type

• Entertainment Controls
• Security and Access Control
• HVAC Control
• Home Appliances
• Smart Kitchen
• Lighting Control
• Smart Furniture
• Home Healthcare
• Other

Technology

• Wireless
• Wired

Software and Service

• Behavioral
• Proactive

Sales Channel

• Direct
• Indirect

Smart Home Market Regional Analysis/Insights

The smart home market is analyzed and market size insights and trends are provided by country, product type, technology, software and service, and sales channel as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

North America is expected to dominate the market due to its high manufacturing capacity and increasing business expansion and customer awareness in the region. The adoption of AI-powered digital assistants for everyday activities, such as Siri and Alexa, is significantly influencing market growth.

Asia-Pacific is expected to show the fastest growth due to its competitive pricing compared to proactive regions. This pricing difference is significant as the market is price-sensitive in the region. The expansion is linked to the enhanced quality of life and increased disposable income of individuals in the area. The proliferation of smartphones, the internet, and other advanced digital devices is projected to propel regional market expansion.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Smart Home Market Share Analysis

The smart home market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to smart home market.

Some of the major players operating in the market are:

• Honeywell International Inc. (U.S.)
• Siemens (Germany)
• Johnson Controls (Ireland)
• Axis Communications AB (Sweden)
• Schneider Electric (France)
• ASSA ABLOY (Sweden)
• Amazon (U.S.)
• Apple Inc., (U.S.)
• ADT (US)
• ABB (Switzerland)
• Robert Bosch GmbH (Germany)
• Sony Corporation (Japan)
• Samsung (South Korea)
• Ooma Inc., (U.S.)
• Delta Controls (Canada)
•  Comcast (U.S.)
• Crestron Electronics Inc., (U.S.)

SKU-19264