Spain Smart Home - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Spain Smart Home Market size is estimated at USD 0.83 billion in 2024, and is expected to reach USD 1.36 billion by 2029, growing at a CAGR of 10.38% during the forecast period (2024-2029).

Key Highlights

• Spanish consumers are increasingly adopting smart home technology to enhance convenience, security, and energy efficiency. With the increasing use of connected devices and the Internet of Things (IoT), the market is experiencing a growing demand for smart home solutions that offer seamless integration and mobile app control. Homeowners seeking to streamline their daily routines and gain greater control over their home environments are turning to smart thermostats, lighting systems, security cameras, and other connected devices.
• Additionally, the rising interest in voice-controlled smart speakers and virtual assistants is another factor in the country's broad adoption of smart home devices. Leading devices such as Amazon Echo and Google Home are gaining traction among consumers, offering control over smart home gadgets and functions like music playback, information retrieval, and task execution, all through simple voice prompts. This surge underscores a clear move towards more brilliant, user-friendly home setups, emphasizing ease and accessibility.
• Spain's growing economy and increasing urbanization and digitalization create a conducive environment for expanding the smart home market. As more households in urban areas seek modern and technologically advanced living spaces, the demand for smart home solutions is expected to rise. Furthermore, government initiatives promoting innovation and technology adoption support the growth of the smart home industry in Spain, encouraging consumers and businesses to invest in connected devices and automation technologies.
• For instance, the Spanish government adopted a 'Digital Spain Agenda 2026' strategy, aiming to drive digital transformation and improve competitiveness, economic growth, and the welfare of Spanish society in the coming years. The initiative focuses on three core dimensions: enhancing infrastructure and technology, bolstering connectivity, and advancing cutting-edge technologies such as 5G, AI, and cybersecurity.
• In 2023, Spain's GDP rebounded, surging by 5.1% post the pandemic recession. This economic upturn bolstered consumer purchasing power, spurring a heightened interest in smart home technologies. With the average household disposable income in Spain hitting EUR 30,400 in 2023, marking a 3.7% increase from the previous year, more Spanish households found themselves in a position to embrace smart home innovations. Notably, as of 2023, 80% of Spain's population resided in urban areas. This urbanization shift is fueling a growing appetite, especially in major cities, for space-efficient and energy-saving smart home solutions.
• However, data privacy and cybersecurity concerns loom large, formidable hurdles to the widespread adoption of smart homes in the country. As smart home devices gain traction, so does the anxiety among consumers, paralleled by a surge in reported security incidents. With the proliferation of connected devices, the landscape is rife with fresh vulnerabilities, underscoring the critical need for robust security protocols and device fortifications.

Spain Smart Home Market Trends

Comfort and Lighting Product Segment is Expected to Witness Significant Growth

• Smart lighting offers a myriad of advantages within smart homes. Over the years, smart lighting has undergone a remarkable evolution. The advent of LED technology marked a pivotal moment, revolutionizing the lighting sector. LEDs outshine traditional bulbs' superior energy efficiency, durability, and extended lifespan. A prominent trend in smart homes is the surge of intelligent lighting and home automation. Consumers increasingly seek lighting solutions that offer remote control via smartphones, voice assistants, or integrated smart home platforms.
• Smart lighting boosts home security by deterring intruders and illuminating the property. Motion-activated lights, automated schedules, and remote monitoring offer peace of mind and help avert accidents. Additionally, these lighting solutions often tie into broader smart home systems, covering security, entertainment, and environmental controls. This integration fosters smooth device interactions, culminating in a unified ecosystem that elevates the smart home experience.
• Further, smart lighting is poised to play a pivotal role in shaping the country's energy efficiency and sustainability goals. Additionally, smart lighting will significantly reduce household electricity bills. According to Eurostat, in the first half of 2023, the electricity price for household end users in Spain was EUR 24.54 cents per kWh.
• Moreover, significant players in the market are opting for strategic initiatives like partnerships and collaborations to strengthen their position in the market. For instance, in April 2023, Lumos Controls partnered with Axoled, granting Lumos Controls' cutting-edge wireless lighting controls exclusive entry into the Spanish lighting market. Simultaneously, this collaboration equips Axoled to provide a comprehensive solution for the region's new constructions, remodels, and energy upgrade projects.

Rising Use of Connected Devices and the IoT to Drive the Market

• The country is experiencing a notable uptick in adopting connected IoT devices in homes. Smart home gadgets, ranging from speakers and lighting to thermostats and security systems, are gaining significant traction. They enhance automation and provide remote access, elevating residents' overall smart home experience.
• According to Eurostat, in 2023, Spain maintained a consistent household internet access rate, hovering at approximately 96.45%. The rising penetration of the Internet in Spanish households can play a significant role in the adoption of connected devices.
• The Internet of Things (IoT) is revolutionizing home automation, enabling devices to connect and communicate seamlessly over the Internet. This connectivity empowers smart devices to share data and respond intelligently to stimuli. In a smart home with IoT devices, settings can automatically adjust based on user preferences, time of day, weather conditions, and occupancy, creating a personalized and adaptive living space.
• Further, the government is taking several initiatives to prevent data privacy and security concerns from arising due to the rapid adoption of 5G technology and the growing popularity of IoT devices. For instance, in May 2024, the Barcelona Cybersecurity Congress took place, which aimed to provide actionable insights and solutions, focusing on key themes like security measures, threat intelligence, and monitoring.

Spain Smart Home Industry Overview

The Spanish smart home market is highly competitive, with small and large players. Major companies hold substantial market shares and are actively seeking global consumer expansion. These players are bolstering their positions through strategic collaborations, partnerships, acquisitions, and new product launches, aiming to gain a competitive advantage in the coming years. Some of the major players in the market are ABB Ltd, Schneider Electric SE, Samsung Electronics Co. Ltd, Fibaro, and EVVR.

• March 2024: Samsung Electronics integrated the ABB-free@home automation app into its SmartThings platform. This integration empowers residents to centrally control appliances and devices, regardless of the manufacturer, through a unified home automation app, streamlining home management. By deeply integrating ABB-free@home into the expansive SmartThings ecosystem, it gains the ability to interact with all other partner solutions on the platform seamlessly. Moreover, ABB-free@home offers remote access, management, and control features, catering specifically to property managers in the rental and multi-dwelling market. This move streamlines its operations and opens up avenues for innovation in automation, energy management, and service systems.
• November 2023: Fibaro unveiled a strategic collaboration with Yale, enabling Fibaro users to oversee the Yale Smart Locks through the Yubii app seamlessly. This integration empowers users to effortlessly lock and unlock their Yale Smart Locks, including the Linus Smart Lock, while conveniently monitoring door and battery statuses, all from within the app.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support