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Smart home market to grow at 11.6% CAGR
- August 4, 2020
- Steve Rogerson
The global smart home market size is expected to grow from $78.3bn in 2020 to $135.3bn by 2025, at a CAGR of 11.6%, according to a report from Research & Markets.
The growth of the smart home industry is driven by various factors, such as the increasing number of internet users, the growing adoption of smart devices, and rising disposable income of people in developing economies.
Moreover, the rising importance of home monitoring in remote locations, increasing need for energy saving and low carbon emission-oriented products, the rapid proliferation of smartphones and smart gadgets, expansion of smart home product portfolios by a large number of players, growing concern about safety and security, and convenience among the general population will drive growth, says the report.
Entertainment has become an important part of life as it provides relaxation and rejuvenation. A multi-room entertainment control system allows the user to centralise all connected devices and then listen to, watch and control that equipment from every room in the house simultaneously or independently.
Major control systems used in smart homes are audio, volume and multimedia room controls. The growth of the market for audio, volume and multimedia room controls is driven by the convenience offered for managing as well as controlling the entertainment systems within a house.
Advancements in wireless communication technologies are a major factor in boosting the growth of the market for home theatre controls, thereby driving the overall smart home market for entertainment controls. The large market share of this segment can be attributed to the high penetration of products such as smart meters and smoke detectors. The increasing cost of electricity is a major concern that drives household consumers towards energy savings. Moreover, the rising popularity of smart plugs, smart hubs and smart locks are fuelling the adoption of control systems.
The increasing connectivity between M2M products and the IoT is driving the growth of the smart home and energy management markets, which has, in turn, influenced the growth of the market for software and services for smart homes. The behavioural type software and services help analyse energy-related data and forward it to end-users.
This category is restricted to transmitting and receiving data and does not perform intelligent actions like the proactive type. Behavioural type products provide direct feedback to end-users, thereby providing the basic information regarding the real-time energy data, along with the historical data reflecting energy usage. Therefore, behavioural type software and services are likely to hold the largest market share in 2020.
North America is likely to account for the largest share of the global smart home market in 2020 owing to the increasing demand for reliable home energy management systems and enhanced home security levels, as well as the growing popularity of smart devices such as tablets and smartphones. The smart home market in APAC is expected to grow at the highest rate during the forecast period. Factors such as strong economic growth, increased population, improved standard of living and rapid urbanisation lead to a sophisticated infrastructure and driving the growth of the smart home market in this region.