Ambient Assisted Living And Smart Home Market Size, Share & Trends Analysis Report By Smart Home Products, By Ambient Assisted Living Type, By Service, By Smart Home Protocol And Standard, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global ambient assisted living and smart home market size was valued at USD 83.60 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 29.7% from 2023 to 2030. Growing demand for energy-saving and low-carbon emission-oriented solutions is driving the demand for ambient assisted living and smart homes. Energy conservation is one of the crucial factors expected to drive the growth of the smart homes market during the forecast period. Lighting controllers outperform traditional lighting and switching systems. They offer an automatic turn-off function when not in use, allowing energy saving. The main advantage of dimming systems is that they adjust the intensity of light based on the needs, resulting in lower energy consumption, electricity costs, and greenhouse gas emissions. Smart meters, for example, can cut power consumption by up to 5%. According to the Consumer Technology Association, in 2021, over 69% of U.S. households owned at least one smart home appliance.

In addition, the rising demand for remote patient monitoring devices and telehealth is driving market growth. Remote Patient Monitoring (RPM) applications, sensors, and Ambient Assisted Living (AAL) systems are becoming more popular. Rising awareness of health systems and concepts such as electronic medical records, mobile health apps, and others are driving the demand for RPM applications. According to the MSI International survey conducted in June 2021, 80% of Americans support remote patient monitoring, and nearly half of them prefer its incorporation into medical treatment. With the deployment of pervasive in-home monitoring and smart technologies, taking care of older people becomes increasingly autonomous and further helps in enhancing access to better medical services.

The COVID-19 pandemic has increased the demand for these technologies, as more people are looking for ways to live more comfortably and safely in their homes. The ambient assisted living and smart home industry has responded to the COVID-19 crisis by introducing innovative products and services that cater to the evolving needs of individuals during the pandemic.

In January 2023, Lucira Health, Inc., a biotechnology company, announced the launch of Lucira Connect in Canada. Lucira Connect is a new virtual care program that enables Lucira test patients to test, learn about possible treatments, connect directly to a telehealth consultation, and, if necessary, receive a prescribed medication all from the convenience of their own home.

Smart Home Products Insights

In terms of smart home products, the ambient assisted living and smart home market is further segmented into energy management systems, entertainment control, security & access control, and HVAC control. The entertainment control segment accounted for the largest revenue share of 39.6% in 2022 and is expected to continue to dominate the market over the forecast period. The growing popularity of Artificial Intelligence (AI) assistants such as Alexa and Siri is increasing the utilization of smart home technologies. Several companies are introducing smart home devices compatible with voice assistants such as Amazon Alexa or Google Home. For instance, the Kono Smart Thermostat from Lux Products Corporation is compatible with both Amazon Alexa and Google Home. Additionally, there has been a shift in recent years toward streaming video and audio content, which is likely to continue. As a result, demand for devices such as smart TVs and streaming services is anticipated to increase.

The HVAC control segment is anticipated to witness the highest growth rate of 33.6% during the forecast period. HVAC control systems regulate the temperature and air quality of a home, creating a comfortable and energy-efficient living environment. Increasing inclination among consumers toward comfort, coupled with demand for building automation systems, is driving the demand for the segment.

Ambient Assisted Living Type Insights

Based on the ambient assisted living type, the global ambient assisted living and smart home market is sub-segmented into safety & security, communication, medical assistive, mobility, telemedicine, compensatory impairment, consumer electronics, and others. The safety & security segment held the largest revenue share of 20.9% in 2022. The primary objective of Ambient Assisted Living (AAL) technology is to improve the safety and security of people who live at home, allowing them to maintain their independence and quality of life. AAL helps individuals live more comfortably and securely by using technology to support and enhance daily living. Factors such as increasing demand for smart fall detection sensors and medical alert systems, coupled with rising incidences of falls, is favoring the growth of the segment. As per the World Health Organization (WHO), there are around 684,000 falls globally per year, with a majority of victims above the age of 60.

On the other hand, the compensatory impairment segment is expected to witness the highest CAGR of 30.9% during the forecast period. Compensatory impairments play an important role in helping individuals or older adults with disability to live independently. As per the World Health Organization (WHO), 15% of the global population suffers from some form of disability. The prevalence of disability tends to increase among older patients, thereby driving the need for assistive technologies. In September 2021, LADD Inc., a non-profit organization based in the U.S., launched the “Smart Living Pilot”. The pilot uses smart home technologies such as wearables and virtual remote support to keep people with disabilities safe.

Service Insights

Based on the service, the global ambient assisted living and smart home market is segmented into installation and repair service, and customization and renovation. The installation and repair service segment held the largest revenue share of 55.4% in 2022 and is expected to maintain its position over the forecast period. A rise in infrastructure development activities is expected to drive the demand for the installation and repair services segment.

On the other hand, the customization and renovation segment is anticipated to witness the highest CAGR of 30.4% during the forecast period. The rise in the aging populace is expected to drive the demand for customization and renovation services. In addition, the rise in the number of home remodeling activities for seniors is supporting the growth of the segment.

Smart Home Protocol And Standard Insights

Based on the smart home protocol and standard, the global ambient assisted living and smart home market is segmented into KNX, LonWorks, Modbus, power line communication, and X10. The Modbus segment held the largest revenue share of 31.3% in 2022 and is expected to maintain its position over the forecast period. Modbus is a highly flexible protocol that can be used to connect a wide variety of devices and systems. This flexibility allows homeowners to customize their smart home systems to their specific needs and preferences. With the rise of smart home technology, there are many different devices and systems available that homeowners may want to incorporate into their homes. Modbus provides a common language that allows different devices and systems to communicate with each other, making it easier to create an integrated smart home ecosystem.

The power line communication segment is anticipated to witness the highest growth rate of 32.9% during the forecast period. The rise in the deployment of smart grid power infrastructure, coupled with an increasing demand for smart home automation, is driving the demand for power line communication standards.

Regional Insights

North America dominated the market with a share of 33.8% in 2022 and is anticipated to retain its dominance over the forecast period. The presence of smart home product providers, coupled with rising awareness towards energy efficiency, is driving the demand in the North American region. As per the International Energy Agency (IEA), investments toward electricity grids in the U.S. was expected to increase by 10% in 2021. Furthermore, the demand for smart energy has witnessed a significant spike in interest in the region, encouraging investors to inject funds into the energy management sector.

A rise in the number of critical players launching services and products for seniors is supporting market growth. In December 2021, Amazon.com, Inc. launched the "Alexa Together" subscription service. The subscription service provides families and caregivers with an emergency helpline, fall detection features, and a remote assist option to take care of senior adults.

Asia Pacific is anticipated to exhibit the highest CAGR of 31.8% during the forecast period. A rise in the adoption of the 5G network is expected to drive market growth in the region. According to GSMA, Asia Pacific will have over 400 million 5G connections by 2025, which is estimated to account for more than 14% of total mobile networks.

Key Companies & Market Share Insights

The market has a fragmented competitive landscape as it features various global and regional market players. Leading industry players are undertaking strategies such as product launches, collaborations, and partnerships to survive the highly competitive environment and expand their business footprint.

For instance, in June 2022, SAMSUNG announced the launch of SmartThings Home Life. The SmartThings Home Life service is the latest addition to the SmartThings app, which offers centralized control over Samsung appliances. SmartThings Home Life enhances the experience of living at home and provides consumers with control, all from the SmartThings app. SmartThings Home Life covers six significant segments of Samsung's smart home: SmartThings Cooking, Pet Care, Home Care, Energy, Clothing Care, and Air Care. Some of the prominent players operating in the global ambient assisted living and smart home market are:

• Johnson Controls

• Heila Technologies

• Medic4all

• GETEMED Medizin-und Informationstechnik AG

• House Intelligence GmbH

• Televic

• Telbios

• Loxone Electronics GmbH

• EnOcean Alliance Inc.

• Caretech Group

• Koninklijke Philips N.V.

• Tunstall Group

• Siemens

Ambient Assisted Living And Smart Home Market Report Scope

Global Ambient Assisted Living And Smart Home Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global ambient assisted living and smart home market report based on smart home products, ambient assisted living type, service, smart home protocol and standard, and region:

• Smart Home Products Outlook (Revenue, USD Million, 2017 - 2030)

  • Energy Management Systems

  • Entertainment Control

  • Security & Access Control

  • HVAC Control

• Ambient Assisted Living Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Safety & Security

  • Communication

  • Medical Assistive

  • Mobility

  • Telemedicine

  • Compensatory Impairment

  • Consumer Electronics

  • Others

• Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Installation and Repair Service

  • Customization and Renovation

• Smart Home Protocol And Standard Outlook (Revenue, USD Million, 2017 - 2030)

  • KNX

  • LonWorks

  • Modbus

  • Power Line Communication

  • X10

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Sweden

    • Norway

    • Denmark

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa

    • Kuwait