Smart Home Market is Expected to Reach USD 790.19 Billion by 2030
As per the report published by Kings Research, the global Smart Home Market was valued at USD 136.14 billion in 2022 and is projected to reach USD 790.19 billion by 2030, growing at a CAGR of 25.06% from 2023 to 2030.
Growing awareness of safety and security, increasing demand for continuous connectivity, and advancements in AI and machine learning technologies are some of the factors that are expected to fuel market growth. In addition, the rising adoption of Internet of Things (IoT) devices, such as smart thermostats, lighting systems, and security cameras, further contributes to the expansion of the smart home market. The integration of voice assistants and smart speakers also enhances the convenience and control offered by these intelligent homes. With the growing emphasis on energy efficiency and sustainable living, smart home solutions provide users with the ability to monitor and optimize their energy consumption, leading to cost-effectiveness and increased environmental benefits.
- Based on the product, the security and access control segment is the fastest-growing segment, with a CAGR of 26.95% during the projection period
- Based on technologies, the wireless communication technologies segment generated the highest revenue of USD 93.21 billion in 2022
- Based on region, North America holds the largest market share of 43.67% in 2022
ADT Launches Enhanced Smart Home Security System with Wi-Fi-Enabled Outdoor Camera
In May 2023, ADT expand its Smart Home Security system with a new outdoor camera featuring two-way audio and a theft deterrent system. This Wi-Fi-enabled camera provides crystal-clear imagery and enables seamless communication, enhancing home security and offering advanced features to customers.
NRG Energy Expands Customer Reach with Successful Acquisition of Vivint Smart Home
In March 2023, NRG Energy, a prominent energy and home services company, successfully acquired Vivint Smart Home, Inc. This acquisition expands NRG Energy's customer reach, now serving approximately 7.3 million customers throughout North America. This presents a significant cross-selling opportunity for NRG Energy with synergistic market-leading brands and complementary sales channels.
Energy Efficiency and Cost Savings Enabling Significant Market Growth
Smart home technology offers users an opportunity to optimize energy usage and cost savings. Through the use of smart thermostats, lighting systems, and appliances, energy consumption can be reduced by remote programming and control. This not only benefits the environment but also translates to significant long-term savings on energy bills. Thus, making smart homes an appealing choice for homeowners. Consequently, the increasing adoption of smart home technology serves as a growth-enabling factor for manufacturers, as the demand for energy-efficient and cost-effective solutions continues to rise.
High Switching Cost Poses a Barrier to Market Growth
The initial setup investment required to install smart devices, upgrade infrastructure, and integrate various systems can be substantial. Homeowners may need to invest in compatible devices, such as smart thermostats, security systems, and smart appliances, which can be more expensive than their traditional counterparts.
Additionally, upgrading existing homes with smart technology can involve labor costs for installation and configuration. While the long-term cost savings and benefits of smart homes are significant, the upfront expenses can be a barrier for some individuals considering the switch to this technology.
Technological Innovation and Affordability Drive Adoption in Asia-Pacific Market
The Asia-Pacific region has emerged as the fastest-growing market for smart homes in 2022. This region has become a vibrant hub for technological innovation and manufacturing, with countries like China, Japan, and South Korea leading the charge. The rapid advancements in these countries have paved the way for affordable smart home devices and systems, making them accessible to a larger consumer base. As a result, more households in the Asia Pacific are embracing the convenience, security, and energy efficiency offered by smart home technologies. The increasing affordability and availability of these devices have fueled the growth of the smart home market in the region, positioning it as a key player in the global industry.
Market Players Concentrating on Innovative Product Launches to Drive Market Development
The global smart home market is consolidated with key players such as Google LLC, Amazon.com, Inc., Apple, Inc., ABB, ADT, Centrica Connected Home Limited, Emerson Electric Co., General Electric CompanySS, Honeywell International Inc., Johnson Controls, Inc., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.