Smart home market continues to grow, driven by changing tech and demographics
The global smart home market size is projected to reach US$117820 million by 2027, from US$72040 million in 2020, at a CAGR of 6.8% during 2021-2027, according to a new report from Valuates.
The expansion of the smart home industry has been aided by factors such as the increasing necessity of home monitoring systems and the increasing disposable income of people in emerging countries, the report states.
The increasing customer preference for video doorbells, voice-assisted technologies (such as Alexa and Google Home), and surveillance systems is predicted to drive the market's growth.
The market is also being driven by an increase in the number of internet users and the adoption of smart devices, as well as a growing need for energy-saving and low-carbon emission-oriented solutions.
The convenience offered by smart home devices is expected to drive growth. Users have remote access to systems such as heating and cooling, intercoms, music, and multimedia devices throughout the home.
Video intercoms make it easy to connect with people in the house or visitors at the door, thanks to integrated hard drives that allow homeowners to see video or listen to audio in any area.
If the homeowners are away on holiday, they can utilise IoT applications' viewing at a distance function to turn lights on or off to make it appear as if the house is occupied. Or, the thermostat might be controlled remotely by the absent homeowner, ensuring that the house is at a pleasant temperature when they return.
Home automation even allows a person to plan automatic operations such as watering the grass, eliminating the need to conduct these time-consuming duties on a regular basis.
The increasing need for home security is expected to increase the adoption of smart homes thereby driving the smart home market.
Homeowners may monitor visitors to their doorstep using video smart home devices while they're away, or even when they're at home, to see if they can safely open the door.
Advanced security systems with cameras, motion sensors, and a link to the local police station or a private security company are included in smart houses. They may also employ key cards or fingerprint recognition in lieu of traditional locks, making it more difficult for intruders to get access.
Accessibility is another key factor for growth. Smart home devices for accessibility may provide an extra sense of security for elderly or disabled individuals. Voice-command systems can control lights, lock doors, dial a phone number, or access a computer.
Finally, smart houses can be more energy-efficient and environmentally friendly. When no one is in a room, lights can be turned off automatically, and the thermostat can be set to allow the internal temperature to drop during the day before returning to a more pleasant level when occupants return home from work or school.
Energy efficiency leads to cost-saving as well. This feature is in turn expected to drive market growth.
Based on type, the smart home appliance is expected to be the most lucrative segment. The availability of wireless solutions that have enabled smart appliances to link wirelessly with smartphones and tablets via the Internet or Bluetooth, as well as wireless connectivity, which has been a major technological advancement in the home appliances industry, has propelled market expansion.
The ability to handle smart home appliances remotely has reduced energy usage and reduced the cost and time necessary for chores. The demand for home appliances is expected to rise in the near future as a result of these advantages.
Based on region, Asia-Pacific is expected to be the most lucrative. Changing lifestyles, rising disposable income, a growing geriatric population, a growing focus inclination toward smart building infrastructure in the region's developing economies, the presence of a large customer base, and rapid technological advancements in smart home products are all driving the market's growth in APAC.