The smart home market in Europe is set to reach $67.5bn by 2031, at a CAGR of 13.9% from 2024 to 2031, according to a report by Meticulous Research.

The growth of the European smart-home market is driven by the rising need for home safety and security, increasing government initiatives promoting the adoption of smart technologies, and the wider proliferation of IoT technologies. However, high procurement costs restrain the growth of this market to some extent.

Furthermore, consumers’ need for flexibility and customisation is expected to generate growth opportunities for market stakeholders. However, data privacy and security concerns and smart-home products’ compatibility with existing infrastructure are major challenges.

Governments in Europe are promoting the adoption of smart-home technologies to address problems such as energy efficiency and sustainability and improve the quality of life for citizens. These initiatives are driven by a combination of environmental goals, economic strategies and technological innovation.

Regional governments are encouraging the use of smart-home technologies that optimise energy use, such as smart thermostats, automated lighting and energy-efficient appliances. Germany has introduced financial incentives, such as grants and tax rebates, to support the adoption of energy-efficient technologies in homes. The French government also offers tax credits, including rebates for smart-home technologies such as energy management systems.

Governments across Europe are integrating smart-home technologies into broader national sustainability and digitalisation agendas. These efforts not only help reduce energy consumption but also support long-term environmental goals while fostering innovation in the building and technology sectors.

Based on product type, in 2024 the smart security and monitoring systems segment is expected to account for the largest share of 29.1% of the Europe smart-home market. However, the smart speaker segment is expected to register the highest CAGR of 18.7% from 2024 to 2031.

In 2024, the wireless protocols segment is expected to account for the largest share of 64.9% of the market. This segment is expected to register the highest CAGR of 14.7%.

In 2024, Germany is expected to account for the largest share of around 25% of the Europe smart-home market. Germany’s smart-home market is one of the most advanced and rapidly growing in Europe, driven by high consumer demand for energy-efficient, automated and secure household products. The market is further supported by government initiatives promoting energy efficiency, the rising adoption of IoT devices, and increased consumer awareness of home automation technologies.

Germany’s smart-home ecosystem is diverse, with segments such as energy management systems, home security, smart appliances, entertainment systems and healthcare monitoring. Energy management and security are two of the fastest-growing segments. The focus on energy efficiency is driven by Germany’s ambitious climate targets, including its goal to become carbon-neutral by 2045. Government initiatives, such as the €18.9bn subsidy programme for energy-efficient building renovations, as well as the installation of solar panels and batteries, have created favourable conditions for the adoption of smart energy management systems.

Home security is another key growth driver in Germany. Increasing concerns about burglaries and crimes have led to rising demand for IoT-enabled security systems, including smart locks, surveillance cameras and motion sensors. In 2023, burglary rates rose in Berlin, prompting German consumers to invest in advanced home security. Companies such as Bosch, which offers comprehensive security systems, have seen increased adoption of their products in response to these trends.

Norway’s smart-home market is projected to register the highest CAGR of 15.6%. The smart-home market in Norway is growing rapidly, driven by advances in technology, increasing consumer awareness and a strong commitment to sustainability. Norway, known for its high standard of living and tech-savvy population, presents a lucrative market for smart-home products and services.

The Norwegian government is supporting the development of smart grids that enable better management and distribution of electricity. This infrastructure enhances the capabilities of smart homes by allowing them to communicate with the grid, respond to variable energy availability, and contribute to more efficient energy use.

Key players operating in the Europe smart-home market include LG Electronics (South Korea), Assa Abloy (Sweden), Amazon Web Services (USA), Samsung (South Korea), Schneider Electric (France), Siemens (Germany), Google (USA), Apple (USA), Legrand (France), Johnson Controls (Ireland), Honeywell (USA), Ecobee Technologies (Canada), Bosch (Germany), ABB (Switzerland) and Axis Communications (Sweden).

Download a PDF brochure of the report at www.meticulousresearch.com/download-sample-report/cp_id=5601.