Smart Home Market Set for 10.0% CAGR Rise, Reaching USD 163.7 Billion by 2028

/EIN News/ -- Chicago, July 10, 2024 (GLOBE NEWSWIRE) -- Global Smart Home Market report size is projected to grow from USD 101.7 billion in 2023 and is anticipated to USD 163.7 billion by 2028; growing at compound annual growth rate (CAGR) of 10.0% from 2023 to 2028.

The importance of home monitoring in remote locations, and Growing need for energy-saving and low carbon emission-oriented solutions are responsible to drive market growth during the forecast period. Factors such as integration of power line communication technology in smart homes provides market growth opportunities for smart home industry.

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Major Smart Home Companies Include:

• Johnson Controls (Ireland),
• Honeywell (US),
• Siemens (Germany),
• Schneider Electric (France), and
• ASSA ABLOY (Sweden).

Smart Home Market Segmentation Analysis:

Proactive software and services to register highest CAGR during forecast period.

Proactive software and services facilitate the transmission of energy consumption data to end users, along with the best possible solutions to be implemented. The market growth for proactive software is projected to grow at a higher CAGR during the forecast period. Proactive software enables the transfer of a higher volume of data than the behavioral versions; it can provide end users with inputs on effective energy usage and actions on the physical parameters, such as ambient humidity and temperature, to reduce energy consumption.

Smart kitchen segment is expected to grow at the highest CAGR Smart home market during the forecast period.

The smart kitchen segment is expected to grow at the highest CAGR during the forecast period, owing to the growing preference for modular kitchens and the rise in disposable income among consumers in developing economies. Due to changes in lifestyles and increased time spent outside the home, the significance of a smart kitchen has risen. Additionally, the growing number of internet, smartphone, and tablet users has made it easier for users to monitor their appliances using their mobile devices, which is particularly appealing to those with busy lifestyles. Kitchen renovation activities have also increased substantially, particularly in developing economies, with a growing preference for modular kitchens.

Indirect sales channels to grow at highest CAGR during the forecast period.

Indirect sales channels or third-party service providers hold a major share of the smart home market. E-commerce platforms offer a one-stop-shop experience that gives more convenience to customers by allowing them to browse and purchase multiple products in one place. Customers can easily review the product with specifications and designs and can order online. Setup and installation services for smart home products and systems are usually provided when customers purchase products online. Apart from this, individual distributors procure devices from a variety of suppliers for sale to end users within their geographic areas.

Regional Market Growth:

North America by region to hold the larger share during the forecast period.

North America is expected to capture the largest share of the global smart home market share by 2028. It is home to some of the prominent market players, including Honeywell (US), Amazon (US), and Apple (US). Factors such as the increased demand for reliable home energy management systems, enhanced home security levels, improved device standards, and the growth in popularity of integration of smart devices, such as tablets, smartphones, and standalone voice assistants, in homes are driving the market for smart homes in North America. The number of smart homes in North America, especially in the US, is higher than that of any other region in the world. Thus, the market share in this region is expected to grow at a steady pace during the forecast period.

Smart Home Market Opportunities & Challenges:

Opportunities:

The lighting control market has experienced significant growth in recent years, with a variety of products available, including dimmers, timers, occupancy sensors, daylight sensors, and relays, which can be used independently or integrated into home automation systems. Typically, external communication protocols are required for lighting controllers to be automated. However, lighting control manufacturers are now producing products with in-built data connectivity, eliminating the need for external protocols and connectivity.

Challenges:

The Smart Home Market statistics is highly fragmented in nature. At present, many players are developing different systems with multiple technologies. It is easy to integrate and connect devices made by the same manufacturer or vendor; however, it is a tedious task to link systems developed by different manufacturers or vendors; this could result in limited functionalities and unreliable services apart from incompatibility issues. Therefore, compatibility issues between various devices are a challenge for the growth of this Industry. As a result, end users regularly install units that can only be controlled by the manufacturer’s app.

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