PUBLISHER: Roots Analysis | PRODUCT CODE: 1721390
PUBLISHER: Roots Analysis | PRODUCT CODE: 1721390
As per Roots Analysis, the global smart home market size is estimated to grow from USD 133.3 billion in the current year to USD 1,033.68 billion by 2035, at a CAGR of 20.47% during the forecast period, till 2035.
The opportunity for smart home market has been distributed across the following segments:
Type of Product
Type of Protocols
Type of Application
Type of Software & Services
Type of End User
Type of Sales Channel
Geographical Regions
Smart homes are contemporary dwellings that offer convenience, security, and efficiency through the installation of internet-connected smart devices and appliances, enabling remote control via smartphones, tablets, and voice-activated interfaces. The range of smart home products includes various devices, such as smart lighting, security systems, cameras, thermostats, entertainment systems, and kitchen appliances, which are among the most favored smart home items. The aim of smart home technology is to enhance convenience, security, and overall home management from any location using connected devices, thus making a substantial contribution to the concept of smart cities.
As advanced technology becomes more prevalent, the popularity of smart home devices continues to rise, driven by the emergence of artificial intelligence and the Internet of Things (IoT), which has resulted in increased demand for smart home products. Further, the increasing number of smartphone users paired with 5G internet technology has played a key role in the acceptance of IoT household appliances. The integration of AI and machine learning with digital assistants like Google Assistant and Alexa, which facilitate task automation through voice commands, is offering an enhanced and more convenient user experience. Notably, in August 2024, Apple revealed its intention to replace Siri with a home robot to deliver a more personalized experience for users. In addition to home automation, the smart office market has been primarily influenced by the widespread use of IoT technology household appliances in commercial settings.
Moreover, the rising awareness for convenience is driving the adoption of smart homes, which provide improved comfort, efficiency, security, and overall quality of life. Moreover, the growing awareness of the benefits and accessibility of innovative products, the rise in IoT technology adoption, and heightened security concerns are some of the critical factors expected to drive the potential growth of the market during the forecast period.
Based on the type of product, the global smart home market is segmented into entertainment devices (smart display / TV, sound bars & speakers, streaming devices), home appliances (smart vacuum cleaners, smart washing machines and smart water heater), home healthcare, HVAC (sensors, smart thermostats, vents and others) lighting control (dimmers, occupancy sensors, relays & switches, smart lights and other products) security & access controls (remote monitoring software & services, security cameras, smart locks, video door phones and others), smart furniture, smart kitchen appliances, (cooktops, dishwasher, microwave/ovens and refrigerators) and other devices.
According to our estimates, currently, entertainment device segment captured the majority share of the market. This can be attributed to the growing demand for smart displays / TVs, sound bars, and streaming devices. The rise in digitalization and the increasing integration of IoT technology have led to a surge in the adoption of smart entertainment devices. Additionally, the increase in consumer expenditure on entertainment software and devices has further bolstered the growth of this segment. However, security and access control segment is anticipated to experience the highest CAGR during the forecast period.
Based on type of protocol, the smart home market is segmented into hybrid (C-BUS and Insteon), wireless protocol (Bluetooth, EnOcean BACnet, DALI, Ethernet, KNX, LonWorks, Modbus, UPB, and X10), and wired Protocols. According to our estimates, currently, wireless protocol captures the majority share of the market. This can be attributed to the increased demand for devices that connect wirelessly, like Wi-Fi, ZigBee, and Bluetooth for mobile connectivity.
Based on type of application, the smart home market is segmented into new construction and retrofit. According to our estimates, currently, new construction segment captures the majority share of the market. This can be attributed to the simplicity of integrating smart devices in new projects and the rising number of residential buildings worldwide. Typically, new construction undertakings integrate numerous smart home products because of the straightforward logistics involved in their installation. However, retrofitting segment is anticipated to grow at a higher CAGR during the forecast period.
Based on type of software and type of services, the smart home market is segmented into behavioral and proactive. According to our estimates, currently, proactive software segment captures the majority share of the market.
Utilizing artificial intelligence and machine learning, proactive software can anticipate user needs and preferences while assisting in scheduling and making adjustments as needed. For example, a smart lighting system is capable of automatically modifying the lighting based on the time of day and the habits of the user. Further, this software offers tailored functionality for smart home devices and enables higher data transfer rates compared to its behavioral counterpart. As a result, this segment is expected to experience substantial growth throughout the projected period.
Based on type of end-user, the smart home market is segmented into residential end-users (luxury homes, mid-range apartments / homes, assisted homes and low-energy homes), commercial end-users (smart hotels and smart hospitals), and other commercial buildings. According to our estimates, currently, commercial end users segment captures the majority share of the market. This can be attributed to the widespread use of smart home technology in establishments like smart hotels and hospitals, which often necessitate advanced features such as surveillance cameras, alarm systems, smart locks, and lighting designed for human needs to ensure convenience, security, and safety. Moreover, these smart devices can be managed remotely using connected gadgets like smartphones, tablets, and remotes, promoting energy efficiency.
However, residential user segment is anticipated to experience the highest CAGR during the forecast period.
Based on type of sale channels, the smart home market is segmented into direct and indirect. According to our estimates, currently, indirect sales channel captures the majority share of the market. However, direct sales channels, or physical retail stores segment is anticipated to experience the highest CAGR during the forecast period.
Based on geography, the smart home market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and Rest of the World. According to our estimates, currently, North America captures the majority share of the market. This can be attributed to the growth in the number of smart homes and the rising demand for energy-efficient smart home technologies, along with the presence of numerous tech companies in the region. However, market in Asia is anticipated to experience the highest CAGR during the forecast period
The report on the smart home market features insights on various sections, including: