Smart Home Automation Market Size - By Product (Hardware {Lighting Control, Security & Access, HVAC Control, Entertainment Control & Others}, Services), By Technology (Wired, Wireless), By Fitment (New Construction, Retrofit) & Global Forecast, 2023 – 2032

Smart Home Automation Market Size

Smart Home Automation Market size was valued at over USD 60 billion in 2022 and is anticipated to grow at a CAGR of 10% between 2023 and 2032, attributed to the increasing popularity of voice-activated devices.
 

Smart home automation refers to the use of technology to automate and control various household appliances & devices including lighting, thermostats, security systems, and entertainment systems. The smart home automation market has been growing rapidly in recent years as consumers increasingly seek to take advantage of the convenience and energy savings that this technology can provide. Voice-activated devices such as smart speakers are becoming increasingly popular among consumers and there is a growing trend toward integrating voice-activated features into smart home devices such as thermostats & lighting systems.

With the increasing sophistication of smart home devices, AI and ML technologies are being integrated to improve the automation & personalization of home devices. ML algorithms are also used to learn user preferences and automate tasks accordingly.
 

Smart home devices collect user data including their usage patterns, personal preferences, and their daily routines. This data can be valuable to companies that develop & sell smart home products as it can be used to improve the functionality & efficiency of these devices. However, there is a growing concern over how this data is collected, stored, and used. If this data is not properly secured, it could be vulnerable to hacking or misuse, putting consumer privacy and security at risk. Additionally, there is a lack of standardization for data protection in the smart home market with some companies using different protocols and standards for securing user data.
 

COVID-19 Impact

The COVID-19 pandemic had a positive impact on the smart home automation market. With more people staying at home due to lockdowns and social distancing measures, there was a growing demand for smart home devices including smart thermostats, lighting systems, and home security systems that could automate & simplify household tasks.
 

However, the pandemic also had a negative impact on the market. The data protection-induced economic downturn led to a decrease in consumer spending on non-essential items, which may have affected the sale of smart home devices. Additionally, disruptions in supply chains led to component shortages, which may have delayed the release of some new smart home products.
 

Smart Home Automation Market Trends

Smart home devices are increasingly incorporating sensors and the Internet of Things (IoT) technologies to enable greater automation & intelligence. This includes sensors that detect motion, temperature & humidity and IoT-enabled devices that can be controlled remotely through a smartphone app or voice command. Additionally, with rising energy costs and growing concerns over climate change, the adoption of energy-efficient smart home devices, such as smart thermostats and lighting systems, is increasing.
 

Smart home devices including smart air purifiers, water filtration systems, and sleep trackers are being developed to promote health & wellness. This trend is attributed to the increasing recognition of the significance of a healthy living environment and the potential of technology to facilitate it.
 

Smart Home Automation Market Analysis

The entertainment control & others sub-segment accounted for over 29% smart home automation market share in 2022, The market offers an array of entertainment control features, ranging from simple TV control to multi-room audio. One of the emerging trends in entertainment control is the integration of voice control with smart home devices, which allows users to easily control their entertainment systems through voice commands. This trend is driven by the growing popularity of voice-activated virtual assistants such as Amazon's Alexa and Google Assistant.
 

Smart home automation systems also offer control over a wide range of household appliances. This includes the ability to control lighting, window shades, and even kitchen appliances such as coffee makers & oven.
 

The smart home automation market from wireless technology segment will expand at 12% CAGR through 2032, due to the increasing adoption of wireless connectivity technologies, such as Wi-Fi, Bluetooth, and Zigbee. Wireless connectivity enables greater flexibility in smart home device placement, eliminating the need for wired connections and enabling devices to be placed in areas where wiring is not feasible or convenient. This has led to the development of more compact & portable smart home devices such as smart speakers and voice assistants.
 

The other factor driving the wireless segment demand is the emergence of low-power wireless technologies such as Zigbee and Z-Wave. These technologies designed specifically for smart home applications offer low-power consumption and an extended range, making them ideal for use in large homes or buildings.
 

The smart home automation market from retrofit sector dominated around USD 35 billion revenue in 2022, fueled by the growing demand for smart home devices that can be easily integrated into existing homes without the need for extensive remodeling or rewiring. Retrofit smart home devices are designed for quick & easy installations, often using the existing wiring and infrastructure, which makes them attractive to homeowners looking to upgrade their homes without significant disruption.
 

In addition, the increasing focus on DIY installation and configuration is also accelerating segment growth. Many retrofit smart home devices come with intuitive user interfaces & easy-to-follow instructions and are designed to be installed & configured by consumers without the need for professional assistance. This trend is driven by the growing popularity of smart home devices among tech-savvy consumers who favor a more hands-on approach to home automation.
 

The North America smart home automation market is expected to register 11.5% CAGR during the forecast timeline, due to the increasing adoption of voice assistants and smart speakers, which is driven by the popularity of Amazon Alexa and Google Assistant. Smart speakers are becoming a central hub for smart home automation, providing a convenient way for users to control multiple devices using voice commands.
 

In addition, North America is also witnessing an increased adoption of home security & monitoring systems due to concerns over safety and security. Smart locks, video doorbells, and home surveillance cameras are becoming more common as they allow users to monitor & secure their homes remotely by using mobile apps and other smart home devices.
 

Smart Home Automation Market Share

Major companies operating in the smart home automation market include:

• ABB Ltd
• Acuity Brands
• Control4 Corporation
• Crestron Electronics Inc
• Honeywell International, Inc
• Johnson Controls
• Koninklijke Philips N.V
• Legrand SA
• Leviton Manufacturing Company Inc
• Lutron Electronics Co., Inc
• Resideo Technologies
• Samsung Electronics
• Savanat Systems LLC
• Schneider Electric
• Siemens AG,
• Snap One, LLC.
   

Smart Home Automation Industry News:

• In October 2022, ASSA ABLOY acquired Bird Home Automation GmbH, a German company that manufactures IP door intercoms designed for both single- & multi-family buildings. This acquisition will aid ASSA ABLOY in expediting its expansion in the smart residential market and reinforcing its position as a prominent provider of home security solutions.
   
• In July 2022, Alef signed an agreement with LittleBird, a smart technology platform that caters to residential communities. This agreement allowed LittleBird to manage its smart home automation and smart access control devices throughout its real estate portfolio.
   

The smart home automation market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032, for the following segments:

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Market, By Product

• Hardware
  • Lighting Control
  • Security & Access
  • HVAC Control
  • Entertainment Control & Others
  • Others
• Services

Market, By Technology

• Wired
• Wireless

Market, By Fitment

• New Construction
• Retrofit

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • GCC
  • South Africa