Smart Home Devices Market Expected to Reach $707.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Smart Home Devices Market," The smart home devices market was valued at $101.6 billion in 2022, and is estimated to reach $707.2 billion by 2032, growing at a CAGR of 21.5% from 2023 to 2032.

Smart home devices are appliances that can be controlled remotely from any place with an internet connection through a mobile or other networked device. Since every device in a smart home is connected to the internet, the user is able regulate features such as lighting, temperature, security access, and home entertainment. Globally, there has been a surge in the popularity of smart homes due to increased internet usage. The market has gained momentum in recent years, which is due to rise in internet penetration and growing desire for opulent lifestyles in developing nations. As a result, the market has developed significantly with the ongoing internet penetration.  Moreover, the 'new normal' created by the social distancing practice forced real estate corporations and the architect community to rethink residential real estate products by incorporating cutting-edge efficiency, creativity, and design. The requirement for a whole new set of amenities has resurfaced as the renovation takes place. Residential homes have undergone a paradigm shift as a result of the COVID-19 pandemic’s revolutionary impact on customer needs in the ‘new normal’.

Furthermore, surge rising demand for convenience, rise in awareness of energy conservation and enhancements in communication technology are primarily driving the growth of the intelligent home devices market. However, high initial cost hamper market growth to some extent. Moreover, integration with new technologies is expected to provide lucrative opportunities for intelligent home devices market growth during the forecast period.

On the basis of type, lighting control segment dominated the smart home devices market in 2022 and is expected to maintain its dominance in the upcoming years owing to offer users the ability to adjust color temperatures, brightness levels, and even create personalized lighting scenes to suit various moods and activities propels the market growth significantly. However, the smart kitchen segment is expected to witness the highest growth, owing to offer users to control ovens, refrigerators, and other devices through natural language commands.

Region-wise, the smart home devices market size was dominated by North America in 2022 and is expected to retain its position during the smart home devices market forecast period, to the increasing adoption of smart security systems, providing homeowners with real-time monitoring and alerts through connected devices aiding the growth of the smart home devices market. However, Asia-Pacific is expected to witness significant growth during the forecast period, Owing to the fast-paced urban lifestyle in the region, maintaining homes needs to be convenient and efficient, which is expected to fuel the market growth in this region.

The adoption and use of smart home gadgets is significantly impacted by the COVID-19 epidemic, among other parts of our lives. Lockdowns and other social distancing tactics have made people spend more time at home, which boosted demand for smart home appliances. The increased emphasis on health and safety is one of the noteworthy effects of COVID-19 on smart home technology. Due to its ability to provide remote monitoring and contactless access control, smart home appliances including security cameras, video doorbells, and locks have grown in popularity. By limiting physical touch with surfaces and enabling remote home monitoring, these technologies improve security and lower the chance of virus transmission. Furthermore, the pandemic has accelerated considerably the process of integrating smart home appliances with wellness and healthcare software. For example, as more individuals seek ways to monitor their health at home, smart thermometers and health monitoring gadgets are becoming more popular. These gadgets allow users to monitor vital signs, identify symptoms, and send out early warnings, allowing them to take the appropriate safety measures and, if necessary, seek medical assistance. In addition, there is a growing need for smart home appliances that improve connectivity and productivity due to the rising reliance on remote work and virtual learning. 

Technological Trends

The use of smart home appliances has grown in popularity recently, completely changing how we use our living areas. A notable technological development in this field is the incorporation of voice assistants, such Google Assistant and Amazon Alexa, into smart home appliances. With the help of these voice assistants, homeowners are able to control their home's lighting, temperature, and security by simply speaking to them. The development of machine learning and artificial intelligence (AI) in smart home devices is another significant trend. With the help of these technologies, devices may become personalized by learning from and responding to the preferences and actions of their users. For instance, smart thermostats offer the ability to automatically change the temperature in response to both user behavior and outside variables like the outside weather. Moreover, the development of smart home appliances is greatly aided by the Internet of Things (IoT). A seamless and integrated ecosystem is created by IoT, which enables various devices to connect and communicate with one another. Users may manage several gadgets at once thanks to this connectivity, making their house genuinely smart and integrated. In addition, the advent of smart home appliances implies a strong emphasis on energy saving. Energy-saving features, such motion sensors that can detect occupancy and change lighting accordingly, are being included by manufacturers into their goods. This lowers energy usage and helps homeowners save money. 

KEY FINDINGS OF THE STUDY

• By component, the solution segment accounted highest for the smart home devices market share in 2022.
• On the basis of type, the lighting control segment generated the highest revenue in 2022.
• According to the smart home devices market analysis, region-wise, North America generated the highest revenue in 2022.

The key players profiled in the smart home devices industry are Johnson Controls International PLC, Schneider Electric, Honeywell International, Inc., Siemens AG, Amazon.com, Apple Inc., Google LLC, Robert Bosch GmbH, ADT, and Raytheon Technologies Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the smart home devices industry.