PUBLISHER: Allied Market Research | PRODUCT CODE: 1344486
PUBLISHER: Allied Market Research | PRODUCT CODE: 1344486
According to a new report published by Allied Market Research, titled, "Smart Home Hardware Market," The smart home hardware market was valued at $72.4 billion in 2022, and is estimated to reach $213.6 billion by 2032, growing at a CAGR of 12% from 2023 to 2032.
Smart home hardware consists of a number of interconnected systems and technologies that enable homeowners to control several devices at their homes. Thermostats, for example, are examples of smart home equipment that can manage temperature based on personal preferences, assuring comfort and energy economy. Another example is smart lighting systems, which may turn on or alter lighting settings when someone enters a room. Also, energy monitoring and management are important features of smart home gear. Smart plugs, smart meters, and energy monitoring systems enable homeowners to measure and optimize their energy usage. This aids in the reduction of energy use and the promotion of sustainability..
The smart home market is growing due to a number of factors include increase in use of the Internet, smartphones, and social networks. The market growth is being driven by increasing global urbanization and rising incomes in developing countries, which have resulted in new ways of living. One of the primary smart home technology trends is the increase in use of home artificial intelligence systems. Artificial intelligence can be used to take AI home automation to the next level. It might be either computer vision or voice-controlled smart devices employing NLP engines to analyze speech that allows a Samsung Family Hub to detect things in the fridge and produce a shopping list. AI is used in such systems to improve the user experience for smart home users. These factors are anticipated to boost the smart home hardware market share.
Smart home devices heavily rely on a stable and reliable Internet connection to function optimally. Any disruption in Internet connectivity can impact the performance and functionality of these devices. Power outages or network outages can temporarily render smart home devices inaccessible or non-functional, affecting the user experience. The rapid pace of technological advancements can lead to the uselessness of smart home hardware devices. As new technologies emerge and become mainstream, older devices may lack compatibility or miss out on new features and functionalities.
The smart home hardware market is expanding into health & wellness applications, such as remote health monitoring, ambient-assisted living, and personalized healthcare. Smart home devices can track vital signs, provide medication reminders, and create ambient environments to support well-being and aging-in-place. The integration of smart home hardware with smart grids and smart city infrastructure presents opportunities for energy management, demand response, and grid optimization. Smart homes can play a vital role in creating more sustainable and efficient energy ecosystems by participating in dynamic pricing programs, load management, and renewable energy integration.
The COVID-19 pandemic led to disruptions in global supply chains, affecting the manufacturing and distribution of smart home hardware. Lockdowns, travel restrictions, and temporary factory closures disrupted the production and delivery of components, leading to delays in product launches and shortages of certain devices. These supply chain challenges affected the availability and accessibility of smart home hardware in the market. During the pandemic, market participants have seen a decrease in smart home system installations. Some smart home products require professional installation and programming on-site. Therefore, buyers have been hesitant to install these devices in order to avoid contact with outside people during the COVID-19 pandemic.
The key players profiled in this report include: Google LLC (Alphabet), Honeywell Corporation, Inc., Amazon.com Inc., Schneider Electric SE., Johnson Controls International plc, ABB Ltd., Legrand SA, Panasonic Corporation, Samsung Electronics Co Ltd, and General Electric. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.