Smart Home Market (2024-2031)
The smart home market was valued at $133.8 billion in 2023. This market is expected to reach $354.9 billion by 2031 from an estimated $146.6 billion in 2024, at a CAGR of 13.5% during the forecast period 2024-2031. Smart Home Market Size & Forecast The growth of this market is attributed to the rising
- Published
- Jul 2024
- Pages
- 250
- Format
- PDF + Excel
- Report ID
- MRICT - 104329
- Base year
- 2023
- 2023 · BASELINE
- $133.8B
- 2031
- $354.9B
- CAGR 2024–2031
- 13.5%
2023 baseline · 2024–2031 forecast at 13.5% CAGR · hover a bar for the value
Key highlights
The smart home market was valued at $133.8 billion in 2023.
This market is expected to reach $354.9 billion by 2031 from an estimated $146.6 billion in 2024, at a CAGR of 13.5% during the forecast period 2024-2031.
The smart security & monitoring systems segment is expected to account for the largest share of over 23% of the global smart home market.
The Wired Protocols Segment to Dominate the Smart Home Market
In 2024, North America is expected to account for the largest share of over 36% of the global smart home market.
However, Asia-Pacific is projected to record the highest CAGR of over 16.9% during the forecast period. The region’s growth is attributed to the growing number of young and tech-savvy population, increasing disposable income, increasing government initiatives for the adoption of smart devices, and significant growth opportunities in emerging countries of Asia-Pacific.
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 250 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR (Value) | 13.5% |
| Market Size (Value) | USD 354.9 Billion by 2031 |
| Segments Covered | By Product Type · Smart Lightning Systems · Smart Speakers · Smart HVAC Control · Smart Thermostats · Smart Vents · Smart Air Conditioning · Smart Security & Monitoring Systems · Security Cameras · Interface · Smart Locks & Access Control · Smart Entertainment Systems · Smart Home Appliances · Smart Washing Machines · Smart Water Heaters · Robotic Vacuum Cleaners · Smart Kitchen Appliances · Smart Refrigerators · Smart Coffee Makers · Smart Dishwashers · Smart Ovens · Smart Home Healthcare Systems · Smart Furniture · Smart Sofas and Recliners · Smart Tables & Desks · By Protocol & Standard · Wireless Protocols · ZigBee · Wi-Fi · Bluetooth · Z-Wave · Thread · Enocean · Wired Protocols · KNX · UPB · X10 · BACNET · LONWORKS · DALI · MODBUS · ETHERNET · Hybrid Protocols · Insteon · C-bus |
| Countries Covered | North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (Japan, China, India, South Korea, Rest of Asia-Pacific), Latin America, and the Middle East & Africa |
| Key Companies | Google LLC (U.S.), Apple, Inc. (U.S.), Amazon.com, Inc. (U.S.), Siemens AG (Germany), United Technologies Corporation (U.S.), Samsung Electronics Co., Ltd. (South Korea), Honeywell International, Inc. (U.S.), Johnson Controls International plc (Ireland), Schneider Electric SE (France), LG Electronics, Inc. (South Korea), Robert Bosch GmbH (Germany), ABB Ltd. (Switzerland), ASSA ABLOY AB (Sweden), General Electric Company (U.S.), Legrand SA (France), and Sony Corporation (Japan) |
Report overview
Segments covered: product type, protocol & standard. Regions: North America, Europe, Asia-Pacific.
The growth of this market is attributed to the rising sense of home safety & security, the wider proliferation of the Internet of Things (IoT), and the need for better energy efficiency. Moreover, the significant growth opportunities in emerging Asia-Pacific and the Middle East & Africa and the need for complete flexibility & customization for consumers are expected to offer growth opportunities for the players operating in this market.
Report infographic
Market dynamics
3 factors across 2 forcesRising Sense of Home Safety and Security Supports the Growth of Smart Home Market
Physical safety and security have become one of the major concerns in the global real estate industry. Homeowners today are increasingly concerned about their families' and possessions' safety and security. This is largely driven by the large number of thefts and burglaries and the effectiveness of home security systems in curtailing these to a large extent. For instance, in 2021, 619,811 burglary cases were recorded in the U.S. However, cases have steadily declined, and security systems are crucial in bringing down those numbers. In the U.S., four out of ten consumers are willing to adopt smart home systems to prioritize making their home more secure. Besides security systems, smart safety devices, including motion sensors, fire & smoke sensors, and leak detectors, among others, are also some of the key products adopted from the safety point of view.
Government bodies and several organizations are also focusing on offering various smart devices for consumer protection and security. For instance, in February 2022, Thales Group (France) launched its new IoT connectivity solution with improved reliability and security for smart grids and connected home appliances. Consequently, the growing sense of home safety and security is driving the adoption of smart security and safety devices, thereby contributing to the growth of the overall smart home market.
Wider Proliferation of Internet of Things (IoT) Drives the Growth of Smart Home Market
Over the past decade, the power of the internet has projected its power beyond computers and smartphones and has made a huge impact across various sectors. IoT devices have become one of the prominent global economic drivers changing diverse sectors, including healthcare, industrial, commercial, and residential. According to a report published by the U.K. government's chief scientific adviser, the growth of the IoT industry is majorly attributed to the availability of inexpensive semiconductors, wider network availability, boosted capacity, and technological advancement in data management and storage.
While IoT is revolutionizing the industrial sectors, its application and impact on the commercial and residential sectors is seen in the form of greater deployment of smart home systems. Several organizations are providing smart technologies integrated with IoT devices for home applications. For instance, in July 2021, China Mobile International Limited (China) launched a smart home IoT management platform to provide consumers with one-stop access to IoT hardware and standardized end-to-end applications with unified connectivity and provide a digital lifestyle across Europe. Thus, as new applications of IoT are developed for smart home systems, their adoption is slated to grow over the coming years, thereby driving the market growth.
Table of contents
10 chapters · 128 sections · 250 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Product Type | Smart Security & Monitoring Systems | Smart speakers |
| By Protocol & Standard | Wired Protocols | Hybrid protocols |
By Product Type
- The smart security & monitoring systems segment is expected to account for the largest share of over 23% of the global smart home market.
- The large market share of this segment is attributed to the rising sense of home safety and security.
- The smart security systems industry is evolving with technological developments, leading to the availability of systems with better security features and improved performance.
- In March 2023, Google LLC (U.S.) and ADT (U.S.) launched a smart home security system to offer internet-connected security features with their existing smart home ecosystem for consumers.
- As smartphones and the Internet have gained wider penetration, the security and monitoring systems industry immediately leveraged this and integrated connectivity and remote access into the systems.
- This ensures that the benefits of these systems are realized without compromising individual rights and privacy.
- However, the smart speakers segment is projected to register the highest CAGR during the forecast period.
- The growth of this segment is driven by the increasing consumer preference for technologically advanced products, the increasing demand for display-based smart speaker devices, and the growing demand for voice-activated devices.
By Protocol & Standard
- The Wired Protocols Segment to Dominate the Smart Home Market
- The wired protocols segment is expected to account for the largest share of over 47% of the global smart home market.
- The large market share of this segment is attributed to the rising need to attain better energy efficiency and changing consumers' preference for stable and reliable wired standards for home automation systems.
- Wired protocols are crucial in establishing reliable and secure communication within smart home systems.
- They involve using physical cables to transmit data and signals between devices and components.
- Ethernet is a well-established wired networking protocol for local area networks (LANs).
- It provides high-speed data transmission and is commonly used for connecting devices that require fast and reliable internet connectivity, such as smart TVs, computers, and networked security cameras.
- However, the hybrid protocols segment is projected to register the highest CAGR during the period.
- Hybrid protocols use the capabilities of both wired and wireless protocols and combine them to achieve better outcome.
- The network is segmented into zones and uses diverse protocols in two different zones such that one protocol is used within the zone and the other is used among them.
- It offers several advantages over conventional wired, wireless, and hybrid protocols such as C-Bus.
- It does not interfere with existing Wi-Fi networks and can easily be incorporated with smart devices.
- The limit to connect smart devices is quite large and can work through power lines, hence eliminating the need for routers.
- It also offers the flexibility of wireless protocols and the reliability of wired protocols, increasingly drawing consumers' attention.
Geographic analysis
North America
Largest shareIn 2024, North America is expected to account for the largest share of over 36% of the global smart home market. The market growth in North America is driven by the availability of smart appliances and systems in the region, greater adoption of advanced technologies, growing sense of safety and security among consumers, growing need for energy-efficient products and systems, innovation in the field of IoT devices, and presence of major players in this region. In 2024, North America is Expected to Dominate the Smart home Market
Asia-Pacific
Fastest growthHowever, Asia-Pacific is projected to record the highest CAGR of over 16.9% during the forecast period. The region’s growth is attributed to the growing number of young and tech-savvy population, increasing disposable income, increasing government initiatives for the adoption of smart devices, and significant growth opportunities in emerging countries of Asia-Pacific.
Competitive landscape
- November 2023
Inter IKEA Systems B.V. (Netherlands) launched three new smart home Zigbee sensors, Vallhorn, Parasoll, and Badring, for water leakage and motion detection. These sensors will provide customers with a greater sense of control and comfort, allowing them to stay connected to home devices.
- June 2021
ProKNX (France) launched an offline multilingual voice-controlled system for smart home. This system performs all the functions of traditional home automation assistants while prioritizing user privacy. The ProKNX plug-and-play smart speaker operates locally via Wi-Fi, allowing users to control lights, blinds, heating, Sonos speakers, and smart televisions using natural voice commands without recording or storing user data.
- Google LLC (U.S.)
- Apple, Inc. (U.S.)
- Amazon.com, Inc. (U.S.)
- Siemens AG · Germany
- United Technologies Corporation (U.S.)
- Samsung Electronics Co., Ltd. · South Korea
- Honeywell International, Inc. (U.S.)
- Johnson Controls International plc · Ireland
- Schneider Electric SE · France
- LG Electronics, Inc. · South Korea
- Robert Bosch GmbH · Germany
- ABB Ltd. · Switzerland
- ASSA ABLOY AB · Sweden
- General Electric Company (U.S.)
- Legrand SA · France
- Sony Corporation · Japan
Frequently asked questions
The smart home market study focuses on market assessment and opportunity analysis through the sales of smart home solutions across different regions and countries across different market segmentations. This study is also focused on competitive analysis for smart homes based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies.
Cite this report
Meticulous Research. (2024). Smart Home Market - Global Opportunity Analysis and Industry Forecast (2024-2031) (Report No. MRICT - 104329). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/smart-home-market-5029