Smart Home Market Size by 2026

The global smart home market size was USD 79.90 billion in 2018 and is projected to reach USD 622.59 billion by 2026, exhibiting a CAGR of 29.3% during the forecast period.

Know more…

https://www.fortunebusinessinsights.com/industry-reports/smart-home-market-101900

A smart home is an automated home setup that consists of a wide range of products including home security, smart lighting, smart entertainment, smart appliances, and others. These products are connected and controlled distantly from a mobile or any other internet enabled network devices. The products are also connected through the internet, which help users to monitor, control, and automate home functions including security access to the house, lighting, entertainment, temperature, and others. These products are equipped with advanced sensors, remote controllers, switches, and other equipment. Further, sensors, remote controllers, and other equipment are integrated with the internet of things (IoT) and artificial intelligence platforms, which offer enhanced security modes, energy efficiency, and improve smart living.

In additional, smart lighting solutions help to control the overall ambiance of smart homes. The products under smart lighting are equipped with light, temperature, and motion detection sensors. These products are integrated with sensor-based lighting techniques that help to provide many features, namely, switching on and off, regulating the light intensity, and adjusting the schema of light in a room depending on the mood and preference of the user.

The entertainment control system in smart homes assists the user to centralize and control all the connected devices, including smart TV, speakers, and virtual assistant device. These IoT devices are capable of communicating by gathering, sending, and receiving information between each other. In smart homes, a consumers’ preference is more towards the smart TV because of the rising advancement in picture quality. Also, its smart features such as connectivity with other products/ devices (e.g. smart speakers and other controlling products) and internet connectivity makes it more preferable. Hence, the smart TV plays an important role in the smart home entertainment segment. This would support the smart home market growth in the coming years.

REGIONAL ANALYSIS

In terms of region, the market is divided into North America, Asia Pacific, Europe, the Middle East & Africa, and Latin America. North America is expected to hold the largest smart home market share during the forecast period. This growth is backed by the strong presence of major players, including Honeywell International Ltd., Crestron, Amx, and Control4 Corporation, operating in this market. Also, factors such as increasing adoption of core communication technologies namely Bluetooth, NFC, Wi-Fi, Zigbee, and upcoming 5G network are boosting the growth of the market. Key companies in this region are focused on entering into strategic mergers and acquisitions to expand their business units worldwide.

• For instance, in October 2018 Siemens AG acquired Mendix. This acquisition was meant to extend its digital innovation platform in home automation solutions worldwide. Companies in this region are also focusing on investing in developing and launching market-centric smart home solutions to capture maximum market share.
• Additionally, in September 2018 ABB Ltd launched ABB-free home smart home solutions in the U.S.
• Similarly, in September 2018 Honeywell International, Inc. launched ‘Honeywell Vector Space Sense’, a software solution. This solution helps to monitor and indicate the space occupied or left in a home.

Furthermore, the smart home ecosystem is expanding at the highest rate and solution providers present in the market are developing advanced products and solutions through merger & acquisition or by investing in advanced technology. In 2018, Amazon made the second-largest acquisition for smart home solutions by acquiring a startup named Ring. Ring is the provider of internet-connected cameras and doorbells.

In Europe, the market growth is considerably driven by the increasing expansion of small startups and rising investment by major companies in countries, such as Germany, the U.K., France, and others. This growth is stoked by the rising demand for smart security and monitoring solutions in this region. These factors will help in the development of the market, thus fostering the smart home market growth and size globally. For instance, in August 2018, Blue Line Innovations, Inc. launched the ‘Energy Cloud platform.’ This platform is mainly deployed in the residential and light commercial applications. Similarly, in August 2018 Centrica plc invested around USD 18 million for the development of smart home projects.

Market growth in the MEA and Latin America is expected to grow with a gradual CAGR. This ongoing growth is likely to occur because of the increasing initiatives and investments done by the governments and local players. Increasing construction of luxurious villas and buildings as well as the growing demand for smart security solutions are projected to aid the market growth in this region in the near future. Several government initiatives including Smart Dubai, smart UAE, and others are aiding the smart house market size in these regions. Coupled with this, the dominant players in these regions are aiming to develop and launch their smart home products in the coming years. For instance, in 2016 Cielo WiGle a United States-based smart home products manufacturer, completed an agreement with Advanced Technology and Services, a Saudi Arabia-based IT services company. This agreement was made to offer the company's smart home products in the MEA.

Asia Pacific Smart Home Market Size, 2018 (USD billion)

• 13.28 billion

LIST OF KEY COMPANIES PROFILED:

• ABB Ltd.
• Assa Abloy
• Centrica Connected Home Limited
• Control4 Corporation
• Crestron Electronics
• Emerson Electric Co.
• General Electric Company
• Honeywell International
• Johnson Controls, Inc.
• Samsung Group
• Schneider Electric SE
• Sony Corporation

Writer of theFortune Business Insights Company