Smart Home refers to modern homes that have appliances, lighting fixtures, and electronic devices controlled remotely by the owner via a smartphone app. Smart home devices can work in conjunction with other devices in the home communicate information to other smart devices. Smart home devices include dryers, washing machines, refrigerators, toaster ovens, air conditioning units, and lighting devices. Moreover, smart home-enabled electronic devices include audio and video entertainment systems, computers, laptops, and other electronic devices. Smart homes are usually preferred as it helps the owner to control costs and be more energy-efficient while providing ample convenience to occupants and potential time savings. The global smart home as a service market is still in the nascent stage though it exhibits high growth potential.
Market Statistics:
The global Smart Home as a Service Market was accounted for US$ 25.15 Bn in terms of value in 2023 and is expected to grow at CAGR of 12.1% for the period 2023-2030
Global Smart Home as a service Market: Drivers
Availability of an enhanced security system is expected to boost growth of the global smart home as a service market over the forecast period
Technological advancements have led to emergence of additional features such as live video surveillance, intrusion alerts, and instant updates, which was not possible with conventional systems. These features enhance personal and family security, which is the major market driver. The adoption of smart homes can significantly reduce the number of domestic burglaries, break-ins, and robberie while keeping unwanted intruders out, thus making homes much safer. Hence, enhance security offered by smarthomes is expected to propel the global smart home as a service market growth over the forecast period.
Global Smart Home as a service Market: Opportunities
Increasing adoption of smart homes
Governments of various countries are focused on green building concepts. Green building refers to the structure and application of processes that are resource-efficient throughout the building’s lifecycle. A smart home uses connected devices where a homeowner can control all appliances remotely through a single platform, which in turn, saves energy. Rising support from governments for green buildings is expected to increase the adoption of smart homes and provide major growth opportunities for market players over the forecast period.
Global Smart Home as a service Market: Restraints
Lack of awareness regarding the benefits of smart homes is expected to hamper the global smart homes as a service market growth over the forecast period
Smart homes and smart appliances are being adopted in countries from developed regions such as North America and Western Europe. However, the rate of adoption of smart homes is very low in emerging economies such as India China. A vast population from these countries is unaware of the benefits of smart homes and connected services, thereby hindering the adoption of the same. Moreover, some consumers are unwilling to adopt smart homes due to the perception of unreliability regarding smart homes. Thus, these factors are expected to hinder the global smart homes as a service market growth over the forecast period
Covid-19 Impact Analysis:
A smart home is a dwelling that uses internet-connected devices to enable management and remote monitoring of systems and appliances, including heating and lighting. In other words, smart homes are combined with highly automated systems that control temperature, lighting, security, multimedia, thermostats, door and window controls, and entertainment systems controlled by users via computers and smartphones. Home appliances are connected via internet lines. IoT will play an important role in this. The use of IoT in smart homes is pushing manufacturers to drive more automation in the home. The global spread of the novel coronavirus has affected most economies around the world. The pandemic is also impacting consumer purchasing behavior and shopping habits. Despite spending a lot of time at home, people are more focused on buying essentials than IoT devices. Declining consumer interest in purchasing his IoT devices is expected to restrain market growth during the COVID-19 pandemic.
Major market players are investing heavily in developing products such as electrical installation systems and security systems. However, the COVID-19 pandemic is impacting manufacturing operations around the world. Also, lockdowns imposed by various governments have slowed the production of smart systems, hindering the market growth.
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Key Takeaways:
The Global Smart Home as a service Market was valued at US$ 11.3 Bn in 2023 and is forecast to reach a value of US$ 25.15 Bn by 2030 at a CAGR of 12.1 % between 2023 and 2030.
Integrated segment held dominant position in the Global Smart Home as a service Marketing 2022, accounting for 55.0% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Smart Home as a service Market Trends:
North America Trends
North America smart home as a service market is expected to witness lucrative growth during the forecast period. This is owing to the high adoption of smart homes in the region, especially the U.S. Consumers in the country are focused on adding products to their homes including video doorbells, smart locks, connected cameras, and smart speakers. Moreover, security-centered smart homes have witnessed significant demand in the recent past, as families are prioritizing safety first while searching for new homes. Moreover, consumers are increasingly adopting smart lighting, energy management solutions, and more, in order to simplify their lives. This trend is expected to continue during the forecast period.
Europe Trends
Europe is expected to witness significant growth in the global smart homes as a market during the forecast period. This is owing to growing awareness regarding benefits of smart homes and the latest technologies. The U.K., France, and Germany are major contributors to the region with high demand for smart and connected appliances. This trend is expected to continue in the near future.
Global Smart Home as a service Market: Competitive Landscape
Key players operating in the global smart home as a service market are Ingersoll-Rand plc (Nexia), Vivint, Inc., Protection One Alarm Monitoring, Inc., The ADT Corporation, Telus Communications, Frontpoint Security Solutions, AT&T Inc., Johnson Controls, Inc., Comcast Corporation, Charter Communications (TWC), and CenturyLink, Inc.
Global Smart Home as a service Market: Recent Developments
In June 2020, Cisco increases its intent-based networking portfolio with new capabilities to give clients more control, security, and insights. Cisco DNA Centre and Cisco DNA Spaces will now provide more information into loT endpoints; this improved network knowledge will enable smarter automation.
In August 2021, ABB India launched a new switch line. ISI-certified Millennium and Zenit switches give customers control, functionality, and comfort in smart buildings and premises that can be easily upgraded with the most advanced smart home automation systems. With these switches built for both residential and business establishments, customers may transition from traditional lighting to an eco-friendly intelligent alternative.
