Smart Home Devices Market: Global Industry Analysis and Forecast (2022-2029)

Smart Home Devices Market was valued nearly US$ 93.28 Bn. in 2021. Smart Home Devices Market size is estimated to grow at a CAGR of 10.4 % & is expected to reach at US$ 205.85 Bn. by 2029.
Smart Home Devices Market Overview:
The increasing importance of home monitoring in remote locations, as well as growing concern about safety, security, & convenience among the general population, as well as the growing number of internet users & rising acceptance of smart devices, as well as the increasing need for energy-saving & low carbon emission-oriented solutions, have all contributed to increased demand for smart home systems.

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Impact of COVID-19 on the Smart Home Device Market:

COVID-19 has had a negative impact on major markets such as the US & China, with supply chain disruption in China resulting in a drop in demand for smart home systems. China's market growth is being hampered by a drop in the number of new construction projects & the temporary shutdown of manufacturing facilities. The market in the United States is predicted to expand faster than other countries in the Americas; however, low adoption of smart home systems in the medium term & the current trade war with China are expected to hamper the market's growth. Smart home system installs have decreased, according to market participants. Because certain smart home products require expert on-site installation and programming, purchasers are hesitant to install these systems to avoid outside contact during this period. As a result, several players have seen a drop in sales. Furthermore, during the coronavirus pandemic, people are concentrating on fundamental necessities.

Several industry analysts predicted that the COVID-19 epidemic would be over by the fourth quarter of FY 2021. Based on input from industry experts from various stages of the value chain, like OEMs, suppliers, end users, & distributors, as well as financial releases from various companies in the smart home market ecosystem for Q1 2021, the market is expected to grow in 2021 over 2020 & return to normalcy in 2022.

Increased internet usage & smart device adoption are driving factors:

The benefits of linking household items to the internet have made the Internet of Things (IoT) popular among residential consumers. The Internet of Things connects items, software algorithms, services, & end users, allowing data to flow freely and real-time decisions to be made. It has proven to be effective in improving the quality and consistency of automation systems. Several large, midsize, & small businesses are heavily investing in the Internet of Things. With most organizations transitioning to IoT, it is likely to reach a wide range of application sectors, including lighting, HVAC, security, healthcare, and entertainment.

The increasing customer preference for video doorbells, voice-assisted technology (such as Alexa & Google Home), & surveillance systems is likely to propel the smart home market forward. The expanding penetration of the internet, the growing use of smartphones, & the expansion of social network platforms are all factors driving consumer IoT adoption. Because of the increased usage of internet-enabled smart devices like radio frequency identification (RFID), barcode scanners, and mobile computers, the entire market for IoT is expected to grow. In the last 10–15 years, the internet penetration rate has risen dramatically, particularly in industrialized nations such as North America & Europe. According to Internet World Stats, North America & Europe had penetration rates of 93.9 % and 88.2 % in March 2021, respectively; Asia & Africa had penetration rates of 63.8 % and 43.2 %, respectively.

Restraint: Concerns about security & privacy violations:

A smart house collects data on energy use and bills, purchases, movements, & music preferences, among other things, so that its systems may be tailored to best support the residents' lifestyle. Common hacking tools may be vulnerable to smart home devices. Because personal information, physical safety, medical care, & houses are all stored virtually on the cloud, the risk of hackers misusing this information is high. A hacked monitor could provide hackers access to other personal data & information, which could then be utilised to harm a user or a household.

Consumers' personal information must be kept secure & secret, which is a challenge for the smart home business. It is critical to protect the secrecy of the information saved while remotely controlling security services; the control of a network's security systems cannot be compromised. This is projected to limit market expansion in several ways. Furthermore, data created by unsecured wearables and smart appliances provides cyber attackers with a large amount of targeted personal data that can be used for fraudulent transactions and identity theft. Theft of a smart gadget has the ability to jeopardise the safety of an entire home. An attacker can take control of a device by hijacking it. As the attacker does not change the device's vital functionality, these attacks are difficult to detect. Furthermore, one gadget has the potential to infect all smart devices in the home. An attacker who compromises a regulator, for example, might hypothetically get access to a whole network & remotely unlock a door or change the keypad PIN code to prevent entry.

Incorporation of lighting controllers with built-in data connectivity:

Over the last few years, the lighting control market has grown significantly. Dimmers, timers, occupancy sensors, daylight sensors, & relays are among the goods available in this sector. These products can be used separately or in conjunction with one another. Through wired & wireless technologies, they can be integrated with home automation systems. Lighting controllers must be externally integrated with communication protocols to enable automated operations. Lighting control makers, on the other hand, are increasingly producing solutions with built-in data communication. Without the usage of external communication protocols or connectivity, these controllers can be functioned directly. This is expected to result in a significant increase in demand for such items, providing potential for smart home market participants.

The use of the Internet of Things (IoT) as the backbone for connected lighting systems enables seamless communication, contextual services, & data exchange across devices, resulting in significant changes in the sectors as a result of the convergence of numerous vertical markets. Increased control capabilities (e.g., switching and dimming) & lower operational expenses & energy usage are possible with LED-based systems. Incorporating IoT and connectivity into lighting systems ushers in a new era with a slew of new prospects and value propositions. The Internet of Things is rapidly maturing, making it economically feasible to link each luminaire to the Internet. As a result, now is a great time to launch the Internet of Lights, which is an improved lighting system with IoT at its heart.

Device failure is a possibility:

Device interconnectivity standards, communication protocols, & network technologies are all critical components of smart home systems. The interoperability of all devices is critical to the operation of smart home goods. The hardware, software, & service components make up the smart home ecosystem. The smooth & cooperative operation of all three segments is critical for the efficient & reliable operation of every single product. Any of these three failing or becoming disconnected can cause a slew of problems for homes in terms of expense & technical complexity. As a result, eliminating the risks of device malfunction & ensuring their seamless operation is a key task for smart home solution suppliers.

Despite the wide range of gadgets that enable Alexa, Google Assistant, &, to a lesser extent, Apple, Microsoft, & Samsung's voice assistants, the promised land of whole-home automation remains elusive for the majority of customers. Smart home device manufacturers, on the other hand, are entering into collaboration or partnership agreements with software & connectivity technology providers to develop innovative offerings tailored to the market, which could help them overcome the challenge of interoperability and reduce the likelihood of device failure. Vivint & Ring are two security-focused smart home solutions that are frequently paired with subscription plans for monitoring & video storage. These systems offer a well-integrated experience, but their capacity to add devices from other brands is usually limited.

In 2021, the major market for smart home was entertainment & other controls:

During the forecast period, the entertainment & other controls sector is likely to hold the greatest share of the smart home market. The ease afforded by these controllers for managing & controlling entertainment systems within a house is driving the expansion of the audio, volume, & multimedia room control industry. Wireless communication technology improvements are a crucial component driving the home theatre system control business, and hence the smart home market for entertainment control. The increasing demand for smart meters & smoke detectors, as well as the rising popularity of smart plugs, smart hubs, & smart locks, are driving the market expansion of the other controls sector.

Behavioral software will have the biggest market share during the forecast period;

Energy-related data is analysed & forwarded to end users using behavioral software & services. End users receive direct feedback from behavioral solutions, which include basic information on real-time energy consumption statistics as well as historical data on energy usage. Behavioral type software & services are rapidly being used in smart homes because they help improve energy efficiency and lower energy bills by analyzing behavioral type data. Behavioral software & services have the ability to learn user behaviour and, as a result, provide smarter appliance control, resulting in a rise in demand. Due to its initial popularity and low cost, this form of software & algorithm is likely to account for a higher part of the smart home market during the forecast period.

In 2021, the indirect sales channel will have the biggest market share for smart homes:

The indirect sales channel sector is likely to take the lead in the smart home market. Smart home devices are sold in both online & offline ways through indirect sales channels. Third-party cellular network carriers, wholesalers, retailers, & value-added resellers are examples of offline sales channels. E-commerce systems are used for online sales channels. In the smart home industry, the COVID-19 epidemic has led to an increase in the usage of indirect sales channels. People have begun to use online mode more regularly as a result of lockdowns in many places throughout the world. During the pandemic, the demand for internet outlets has skyrocketed. Companies provide product setup & installation services, allowing customers to buy things online with confidence. Furthermore, third-party delivery companies have begun to take extra steps in order to encourage customers to buy without fear of becoming infected. As a result, during the forecast period, the internet sales channel segment is expected to rise.

In 2021, North America will have the biggest market share for smart homes:

The high per capita income in North America, the growing demand for reliable home energy management systems, improved home security levels, improved device standards, & the growing popularity of integrating smart devices like tablets, smartphones, & standalone voice assistants in homes are all driving the growth of the North American smart home market. Furthermore, the US government's different awards for green energy projects are propelling the smart home market in this region forward.

The objective of the report is to present a comprehensive analysis of the Smart Home Devices Market to the stakeholders in the Sales Channel. The past and current status of the Sales Channel with the forecasted Market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the Sales Channel with a dedicated study of key players which include Market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the Market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the Sales Channel to the decision-makers.

The report also helps in understanding the Smart Home Devices Market dynamics, structure by analyzing the Market segments and project the Smart Home Devices Market size. Clear representation of competitive analysis of key players by Product Type, price, financial position, Product Type portfolio, growth strategies, and regional presence in the Smart Home Devices Market make the report investor’s guide.
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Global Smart Home Devices Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 93.28 Bn.


Forecast Period 2022 to 2029 CAGR:
10.4%
Market Size in 2029:
US $ 205.85 Bn.


 Segments Covered:
by Product Type
• Lighting Control
• Security & Access Control
• HVAC Control
• Smart Speaker
• Smart Kitchen
• Smart Furniture


by Sales Channel
• Direct
• Indirect



Smart Home Devices Market, by Region
• North America
• Europe
• Asia-Pacific
• MEA &Africa
• South America
Smart Home Devices Market Major Players:
• Honeywell (US)
• Siemens (Germany)
• Johnson Controls (Ireland)
• Schneider Electric (France)
• ASSA ABLOY (Sweden)
• Amazon (US)
• Apple (US)
• ADT (US)
• ABB (Switzerland)
• Robert Bosch (Germany
• Sony (Japan)
• Samsung Electronics (South Korea)
• Crestron Electronics (US)
• Legrand (France)
• Others
FAQ’S:
1. Which region has the largest share in Global Smart Home Devices Market?
Ans: North America region holds the highest share in 2021.

2. What is the growth rate of Global Smart Home Devices Market?
Ans: The Global Smart Home Devices Market is growing at a CAGR of 10.4% during forecasting period 2022-2029.

3. What is scope of the Global Smart Home Devices market report?
Ans: Global Smart Home Devices Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Smart Home Devices market?
Ans: The important key players in the Global Smart Home Devices Market are – Honeywell (US), Siemens (Germany), Johnson Controls (Ireland), Schneider Electric (France), ASSA ABLOY (Sweden), Amazon (US), Apple (US), ADT (US), ABB (Switzerland), Robert Bosch (Germany, Sony (Japan), Samsung Electronics (South Korea), Crestron Electronics (US), Legrand (France) and Others

5. What is the study period of this market?
Ans: The Global Smart Home Devices Market is studied from 2021 to 2029.