The global smart home automation market size was valued USD 46.15 billion in 2016 and is expected to gain traction over the forecast period owing to its rapid adoption across residential applications. The increasing demand for features such as the convenience of remote operation and exceptional experience offered by smart home automation is likely to propel the global market growth over the forecast period.
This industry is expected to witness an increase in share owing to the growing adoption of systems or devices in a number of applications such as security, lighting, entertainment, HVAC & energy management, and smart kitchen. This technology has evolved with increasing preference among consumers for convenience, connectivity, safety, and security which are expected to fuel growth in the demand for the smart home automation systems.
Increasing urban population and growing geriatric population have created the need to incorporate smart home automation concept in order to address the arising challenges.The opportunities for the advancements of smart home automation system using mobile, applications and other platforms over different time spans is expected to be enormous.
Moreover, the advancement of Internet accessibility and the growing penetration of Internet of Things (IoT) which helps in the move to direct digital controls for better machine to machine (M2M) communication have encouraged users to adopt the smart home automation technology, thereby driving market growth. However, factors such as less awareness and high installation cost associated with the devices may pose a challenge to the market demand over the forecast period.
Based on component, the market has been segmented into hardware, software and service. The hardwaresegment is anticipated to dominate the component market by 2025. The service segment is expected to witness a significant growthowing to increasing adoption of the smart home automation technology.
Rapid advances in smart home automation system as well as using these technologies to add value to the provision of urban services require authorization for sustainable development of new methods. This may involve the integration of hardware, software, and service that would improve the competitiveness of the environment in which smart home automation system operates.
IT is becoming an essential part of the product itself. Processors, software, connectivity and embedded sensors in products, integrated with a product cloud in which some applications are run, and product data is analyzed and stored, are driving substantial improvements in product performance and functionality.
Based on application, the market has been segmented into security, lighting, entertainment, hvac & energy management, and smart kitchen. The entertainment segment is anticipated to dominate the market by 2025. The smart kitchen segment is expected to witness a significant growth rate owing to the high demand originating for smart appliances.
The upsurge in need for push button control, energy-preservation, shifting demographic preferences and need to safeguard the global environment from polluting effluents such as greenhouse gasses and toxic wastes is expected to result in a significant market growth.
Smart home automation offers a number of advantages, such as system scalability and easy extension, aesthetical benefits, integration of mobile devices, maximizing home security, remote control of home functions, increased energy efficiency, improved appliance functionality, home management insights.
Based on technology, the market has been segmented into cellular, wireless and others. The wireless segment is anticipated to dominate the wearable camera product market by 2025. Wireless technology is less invasive, have low set-up cost, and more convenient to use which has resulted in an increased adoption of it in the smart home automation system.
While there is enormous demand for technologically advanced solutions, the need for cost effective solutions has also increased. Internet of Things (IoT) based solutions are trending in the home automation market and is the most preferred choice for most of the start-ups.
Smart home automation is all about a blend of comfort with more aesthetics. The advancements in the technology have not only provide the convenience but have also brought revolutionary change in its design aspects and practical use of the product.
The North American region is estimated to be the key regional segment over the forecast period owing to well-established manufacturers and large consumer base. The region accounted for largest revenue share and is expected to grow at a CAGR of more than 8% from 2017 to 2025. The North American, European, and Asia Pacific regions are anticipated to remain the key revenue generating segments over the forecast period.
The Asia Pacific region is experiencing a healthy growth in disposable income owing to macroeconomic stimulus, which is anticipated to drive market growth. Innovative technologies, such as voice controlled smart home devices, and growing geriatric population base are the key factors driving the smart home automation market demand over the projected period.
The market in Europe is expected to be promising for global growth through the forecast period owing to increasing investments in infrastructure to improve standard of living. Increased demand for HVAC & energy management has significantly driven regional growth.
Key industry participants of the market are ABB Ltd. (Switzerland), Control4 Corporation (U.S.), Crestron Electronics, Inc. (U.S.), Honeywell International Inc. (U.S.), Ingersoll-Rand plc (Ireland), Johnson Controls (U.S.), Legrand SA (France), Leviton Manufacturing Company, Inc. (U.S.), Lutron Electronics Co., Inc. (U.S.), Schneider Electric (France), and Siemens AG (Germany). Key players are indulged in undertaking strategic initiatives such as new product developments, continuous upgrades of current product lines to offer avenues for increased profitability through better customer relationships.
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Attribute |
Details |
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Base year for estimation |
2016 |
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Actual estimates/Historical data |
2014 - 2015 |
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Forecast period |
2017 - 2025 |
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Market representation |
Revenue in USD Million and CAGR from 2017 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
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Country scope |
U.S., Canada, Mexico, Germany, UK, China, Japan, India and Brazil |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the smart home automation market based on applications, products, types, and regions.
Component Outlook (Revenue, USD Million; 2014 - 2025)
Hardware
Software
Service
Technology Outlook (Revenue, USD Million; 2014 -2025)
Cellular
Wireless
Others
Application Outlook (Revenue, USD Million; 2014 - 2025)
Security
Lighting
Entertainment
HVAC & Energy Management
Smart Kitchen
Regional Outlook (Revenue, USD Million; 2014 - 2025)
North America
U.S.
Canada
Mexico
Europe
Germany
UK
France
Asia Pacific
China
India
Japan
South America
Brazil
MEA
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