A smart home is a residence equipped with devices that are connected through a network (often the Internet) to allow remote management and monitoring. These devices, also known as smart devices or home automation devices, can include smart speakers, thermostats, lights, security cameras, door locks and appliances. The primary goal of a smart home is to improve convenience, security, energy efficiency and comfort by allowing users to control various aspects of their home environment through a smartphone app, voice commands or automated settings.
The smart homes market consists of sales, by entities (organizations, sole traders and partnerships), of smart home solutions (products, software and services) that enable automation, remote control and monitoring of home functions for convenience, security and energy efficiency.
The global smart homes market was valued at $55,035.2 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 14.0%.
Rise In Deployment Of 5G Networks
During the historic period, the smart homes market was driven by the increased deployment of 5G networks. The emergence of 5G technology facilitated faster data transfer rates, lower latency and higher bandwidth, which were crucial for delivering seamless and immersive smart technology experiences. Home automation is a key component of smart homes and 5G plays a crucial role in enabling advanced automation capabilities. With its high bandwidth and low latency, 5G allows for real-time control and monitoring of smart home devices. For example, according to the Connected Nations 2021 Report, an annual report that tracks the UK's progress in the availability of broadband and mobile services published by the Office of Communications (Ofcom), a UK-based government-approved regulatory and competition authority, 5G network investment in the UK was £330 million ($419.33 million) in 2020, an increase of over £150 million ($190.62 million) (88%) in 2019. Therefore, growth in the deployment of 5G networks supported the growth of the smart homes market.
Advancements In Cleaning Technology With Laser Navigation Systems
Major companies in the market are focusing on advancements in cleaning technology with laser navigation systems to improve home cleaning solutions. A laser navigation system emits laser beams from a source. The emitted laser beams hit objects or surfaces in the environment and reflect back to the sensor in the system to allow the robot vacuum to create a detailed map of the room. For example, in April 2024, Xiaomi, a Chinese designer and manufacturer of consumer electronics, launched Robot Vacuum cleaner S10. It features LDS (laser direct structuring) laser navigation system for quick mapping. Additionally, it features multiple sensors to identify obstacles and bumps. Once connected with the Xiaomi Home app, the Robot Vacuum Cleaner S10 allows users to customize their cleaning schedule and patterns. With a 4000Pa (pascals) suction capability, it has a scanning range of eight meters. The Robot Vacuum Cleaner S10 comes with a pre-installed roller brush and a mop pad. It features a water tank that doubles up as a dust container depending on the cleaning mode.
The global smart homes market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 18.16% of the total market in 2023.
Smart Homes Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global smart homes market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for smart homes? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The smart homes market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider smart homes market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by product, by software and services, by sales channel, by technology and by standards and protocols.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the smart homes market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by product, by software and services, by sales channel, by technology and by standards and protocols in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for smart homes providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Product: Lighting Control; Security And Access Control; Heating; Ventilation And Air Conditioning (HVAC) Control; Entertainment Control And Other Controls; Smart Kitchen; Home Appliances; Other Products
- 2) By Software And Services: Behavioral; Proactive
- 3) By Sales Channel: Direct; Indirect
- 4) By Technology: Wireless Technology; Cellular Network Technology
- 5) By Standards And Protocols: Wireless Protocols; Wired Protocols; Hybrid Protocols
- Companies Mentioned: Siemens AG; Johnson Controls International Inc.; ASSA ABLOY AB; Legrand Group; Schneider Electric SE.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; smart homes indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.