Smart Home Market Size, Share & Trends Analysis Report By Product, By Protocol (Wireless Protocols, Wired Protocols), By Application (New Construction, Retrofit), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global smart home market size was estimated at USD 62.69 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 27.04% from 2022 to 2030. Smart home products are present in security cameras, smart lights, streaming devices, dishwashers, and more. The trend of artificial intelligence in smart home appliances for smart features is expected to increase the product demand. Moreover, the growing penetration of the internet and smartphones is driving the trend for internet and smartphone-connected smart home devices.

Digital assistance integrated with AI offers users a hands-free and more user-friendly deployment of smart devices, significantly impacting the buyer's preferences. The rise of digital assistants, including Alexa, Google Assistant, Siri, and Bixby, enables smart devices to be controlled and managed through voice commands. The emerging feature of these digital assistants, like control Bluetooth speakers and hands-free channel surfing, drives the demand for smart home devices in the market. Furthermore, buyers prefer personalized devices for their convenience and better user experience.

The quick acceptance of modern technologies, such as the internet of things (IoT), blockchain, smart voice recognition, artificial intelligence (AI), and others had a significant impact on market growth. The technology equips smart home products to recognize the voice of users and give them personalized responses. An increased adoption rate of IoTs in developing and developed regions has helped grow the smart homes market. The capability of technologies to allow interconnectivity between devices has helped in generating further demand for the market.

The COVID-19 pandemic shut down industries and affected manufacturing. The pandemic disrupted operational efficiency and affected the value chains due to the rash closure of international and national boundaries leading to damage and revenue loss. The existing smart products such as TVs and refrigerators remained popular as they aided the demand for entertainment and convenience of customers, who were forced to stay at home. The value chain had an unfavorable impact on the supply of raw materials, impacting the development of the smart home market.

Although supply chain discrepancies were present, the pandemic and its impacts revealed significant shortcomings in the digital device and internet infrastructure sectors that will take time to fix. Smart home appliances were purchased by numerous people during the lockdown. As supplies decreased and production lagged, there were not enough semiconductors available to support smart products. This also impacted companies that manufacture smart home-related products.

Product Insights

The security & access control segment dominated the market with the highest revenue in 2021 and is expected to dominate the market till 2030. The growth is attributed to the rising importance of security and the need to restrict access to rooms or safes with valuable items and goods. Smart locks and security cameras help monitor and authorize access only to permitted individuals by incorporating live feed playback, custom PINs, fingerprint scanners, and more.

For instance, in September 2022, Amazon.com unveiled Ring Spotlight Cam Pro, Ring Spotlight Cam Plus, and 2nd Gen Ring Alarm Panic Button for security and access control purposes using radar and 3D motion detection features.

The home healthcare segment is projected to grow at the highest CAGR of over 30% during the forecast period, as consumers prefer smart home healthcare products to self-diagnose, owing to rising healthcare and insurance costs. The trend of fitness and health consciousness among people is also driving the segment’s growth. The trend of monitoring vitals, oxygen levels, and more is created by home healthcare products as consumers use these products to monitor their key vitals. Earlier, this was possible only after visiting a hospital or a clinic, however, smart home healthcare products have enabled consumers to conduct basic testing at home.

Protocols Insights

The wireless protocols segment is expected to grow at the highest CAGR over the forecast period of 2022 to 2030. The segment also recorded the largest market share in 2021. This strong growth is attributed to the capabilities and features offered such as mobile connectivity, connectivity regardless of location, and more by protocols namely, ZigBee, Wi-Fi, Bluetooth, Z Wave, and others. Manufacturers prefer protocols that offer smooth communication, minimum stress on battery life, and range. For instance, the ZigBee protocol provides longer battery life as it operates on lower latency and a low-duty cycle for instant device-to-device communication.

The wired protocols segment is expected to grow at a CAGR of over 25% as a result of the traditional products with built-in Ethernet or cable ports. Wired protocols often connect and help operate a hub of smart home devices at a central location. The secureness of wires laid behind walls and fewer connectivity issues are the key trends for wired protocols. The rising demand for low-latency smart home products is expected to push the segment’s growth in the region.

Application Insights

The new construction segment is expected to grow at the highest CAGR over the forecast period of 2022 to 2030 as a result of the convenience and ease of installation of smart home devices during construction activity. The demand is generated as homeowners prefer not to demolish any walls or tiles and installation is done securely and efficiently. Moreover, the rise in the construction of new residential around the world is expected to drive the demand for smart homes following the trend of smart security and access features. Owners of new construction projects are also likely to install multiple smart home products as a result of the ease of logistics involved in fixing the devices.

The retrofit segment accounted for the highest market share in 2021. The segment also recorded the highest market revenue in 2021 as a result of the rising demand for smart homes. Existing homeowners retrofit their homes by installing one or multiple smart products based on the logistics and budget. Due to the increase of smart products in the market, there is a rise in the trend of smart homes which drives the growth of the segment.

Regional Insights

The Asia Pacific region is expected to register a CAGR of over 30% over the forecast period from 2022 to 2030. The region’s market growth is due to the improved standard of living and increased disposable income among individuals in the region. Rapid penetration of smartphones, the internet, and other digitally advanced equipment is expected to drive the market in the region. Furthermore, the trend of using AI-based digital assistance for daily tasks, such as Siri and Alexa, significantly impacts market growth.

The Europe smart home industry is expected to grow at a CAGR of around 25% over the forecast period from 2022 to 2030. The region recorded a significant market share in 2021. This stronghold and growth can be attributed to the presence of key market players in the region, including ABB, Legrand, Schneider Electric SE, Siemens, Robert Bosch GmbH, and others. Also, the increased standard of living, high gross domestic product (GDP), the positive reception of technology by the masses, and favorable government initiatives support the growth of smart automation devices and technologies are expected to be driving the market growth in the region.

Key Companies & Market Share Insights

The company landscape brings forward the industry factors and dynamics affecting and shaping the global market. Key companies and new entrants predict realistic and unrealistic forecasting growth strategies, such as product launches, mergers & acquisitions, technological advancements, and geographical expansion. For instance, in August 2022, Amazon.com, Inc. announced the launch of its sound bot, wall echo, home robot, and other smart home devices as an annual model refresh. The launch is in line with the company’s aim to upgrade the product hardware in competition with rival companies.

Key companies are investing substantial capital in ventures, development, and research in modern technologies. For instance, in January 2022, Samsung Electronics Co., Ltd. partnered with the Home Connectivity Alliance to stimulate the development of smart home technology. This partnership aims to provide new and valuable features in the product offerings. Additionally, market players are growing capabilities of smart home products and features to support their use in homes, either in new construction or retrofit. Some prominent players in the global smart home market include:

• LG Electronics, Inc.

• Siemens AG

• Amazon.com, Inc.

• Google Nest (Google LLC)

• Samsung Electronics Co., Ltd.

• Schneider Electric SE

• Legrand S.A.

• Robert Bosch GmbH

• Assa Abloy AB

• Sony Group Corporation

• ABB, Ltd.

• Philips Lighting B.V.

• Honeywell International, Inc.

Smart Home Market Report Scope

Global Smart Home Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global smart home market report based on product, protocol, application, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Security & Access Controls

    • Security Cameras

    • Video Door Phones

    • Smart Locks

    • Remote Monitoring Software & Services

    • Others

  • Lighting Control

    • Smart Lights

    • Relays & Switches

    • Occupancy Sensors

    • Dimmers

    • Other Product

  • Entertainment Devices

    • Smart Displays/TV

    • Streaming Devices

    • Sound bars and Speakers

  • HVAC

    • Smart Thermostats

    • Sensors

    • Smart Vents

    • Others

  • Smart Kitchen Appliances

    • Refrigerators

    • Dish Washers

    • Cooktops

    • Microwave/ovens

  • Home Appliances

    • Smart Washing Machines

    • Smart Water Heaters

    • Smart Vacuum Cleaners

  • Smart Furniture

  • Home Healthcare

  • Other Devices

• Protocols Outlook (Revenue, USD Million, 2018 - 2030)

  • Wireless Protocols

    • ZigBee

    • Wi-Fi

    • Bluetooth

    • Z Wave

    • Others

  • Wired Protocols

  • Hybrid

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • New Construction

  • Retrofit

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • South America

    • Brazil

    • Mexico

  • Middle East & Africa