According to a new market research report entitled ‘Smart Home Market (Smart Kitchen, Security & Access Control, Lighting Control, Home Healthcare, HVAC Control and Others): Global Industry Perspective, Comprehensive Analysis, and Forecast, 2016-2022’, the global smart home market was valued at around USD 24.10 billion in 2016 and is expected to reach approximately USD 53.45 billion by 2022, growing at a CAGR of slightly above 14.5% between 2017 and 2022. In the research, a ‘smart home’ refers to a residential extension involving automation of lighting, ventilation, heating, air conditioning, and security as well as home appliances such as washer and dryers, ovens or refrigerators that use WiFi for remote monitoring.
Rising need for consumer convenience, safety, and security, energy consumption is the major driver of the smart home market. The real estate industry is expected to spur the demand of the smart home market. At present, many new homes are being built with the additional wiring and controls which are required to run advanced home automation systems. Of all market segments, lighting control is expected to grow at highest CAGR as it reduces electricity consumption.
However, in few regions, home automation products have reached saturation level which is the major restraints for the smart home market. Another factor which is hindering the smart home market growth is its high installation cost and lack of standardization. Furthermore, low awareness about home automation is hampering the growth of the smart home market. Nonetheless, high-end devices coupled with technologically advanced features will escalate the smart home market demand over the forecast period. Cloud-based solutions also provide new opportunities to impel the demand of smart home market over the forecast period.
The major players in North America and Europe:
North America is a best smart home market across globe followed by Europe. In North America and Europe, the most successful products in smart homes are thermostats, security systems, network cameras, smart lighting, and multi-room audio systems. Some of the major companies in both regions are providing advance services regarding the voice-driven user interface. The major players are: Siemens AG, ABB Ltd., Schneider Electric S.A., Ingersoll-Rand Plc, Tyco International Ltd., Legrand S.A.
The major players in Asia Pacific:
The Asia Pacific region is witnessing significant growth due to a number of new residential projects and strengthening of building infrastructure at a significant rate. Moreover, economically emerging countries such as Japan, South Korea, and China are anticipated to contribute stupendous growth in the near future. Currently, South Korea is considered to be a huge market for smart homes due to the high demand for various control devices pertaining to lighting and entertainment control in this country. The major players are: Cisco Systems, Inc., United Technologies Corporation., Emerson Electric Co., Control4 Corporation., Honeywell International, Inc., and Leviton Manufacturing Company, Inc.
In developing economies:
The developing economies in Latin America also have a potential market for the growth of the smart home market. The Middle East and Africa are also expected to be one of the fastest growing regional markets for smart home in the coming years. In 2016 Huawei and Telefónica joined forces to develop the Smart Home category in Latin America. With the help of Huawei’s cloud-based platform and a jointly designed exclusive user experience, Telefónica would offer its Latin American customers an innovative Smart Home experience. Thereby, it will become the first telco to offer these services in this region.
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