Smart Home Systems (Global Market)

• Smart home

2023

Global Smart Home Devices Market Size Up 15% to $328.72 Billion

At the end of 2023, the global market for smart home devices reached $328.72 billion. This is about 15% more compared to 2022, when costs in this area were estimated at $285.1 billion. One of the key drivers of the industry is the integration of advanced technologies into living quarters, as stated in Market Research Future materials published at the end of August 2024.

The study examines various products for smart housing: controllers, all kinds of sensors, household appliances, lighting fixtures, video surveillance system and security. It is noted that consumers around the world are increasingly using smart home equipment to improve convenience, energy efficiency and functionality. The rapid expansion of the Internet of Things (IoT) infrastructure, coupled with the widespread deployment of cloud services, continues to drive the market. In particular, cloud platforms provide users with a number of benefits, including remote device access, data storage and analysis, and the ability to manage systems from anywhere in the world with an Internet connection .

The smart home sensor segment is expected to grow significantly due to their crucial role in data collection and automation of various activities. The smart lighting sector is also gaining momentum due to the ability of such devices to improve the aesthetics of the home, provide energy savings and provide remote control functions. The increase in sales of such products is observed both in the residential and commercial sectors. CCTV is showing steady growth as consumers become increasingly concerned about home safety and seek remote monitoring opportunities. Integrating cutting-edge technologies such as artificial intelligence and facial recognition will further boost demand for video surveillance solutions, according to the report's authors.

Leading industry players include Google, Samsung, Siemens, Schneider Electric, AWS, Microsoft, TP-Link, Arm, DLink, Legrand, Delta Electronics, Cisco, Huawei, Intel and Belkin. In 2023, security solutions contributed the most to sales in the global smart home device market. Management tools are another significant segment: the increase in sales of such equipment is due to the growing demand for convenient automated systems for home control. By connection type, Wi-Fi dominates with a share of about 60% in 2023. A significant part of the market is occupied by Bluetooth - especially in applications with a short range, such as lighting control and audio streaming. In addition, the positions of Zigbee and Z-Wave technology are strengthened.

Geographically, North America held the largest market share in 2023 due to the high adoption rate of smart home devices and the presence of major players. This is followed by Europe, where the most active development of the industry is observed in Germany, Britain and France. In the Asia-Pacific region, the expansion of the industry is facilitated by an increase in disposable income of citizens and increased urbanization. South America, the Middle East and Africa have relatively small shares but have good growth potential.

It is estimated that in 2024 global sales of smart home devices will amount to about $379.02 billion. According to Market Research Future analysts, in the future, the CAGR (CAGR in complex percentage) will be at the level of 15.3%. As a result, by 2032 the volume of the industry will reach $1.18 trillion.^[1]

Sales of smart home equipment in the world for the year increased by 14% to $88 billion

In 2023, sales of smart home equipment in the global market reached $88.01 billion. For comparison, in 2022, costs were estimated at $76.94 billion. Thus, growth exceeded 14%, as stated in the Market Research Future review, published in mid-August 2024.

The study covers smart speakers, smart lighting devices, smart thermostats, security tools (for example, smart cameras), etc. One of the most significant factors contributing to the development of the industry, analysts call the growing demand for convenience and comfort among consumers. Smart home equipment helps to control lighting and climate, remotely interact with household appliances, as well as monitor the state of certain systems remotely through a smartphone or tablet from anywhere in the world with an Internet connection. Voice assistants provide additional comfort.

Rapid infrastructure expansion Internet of Things () IoT combined with increasing disposable income of citizens and technological advances continues to drive the smart home equipment market. And the rapid spread of artificial intelligence opens up new opportunities for smart product developers. In particular, integration AI cloud computing and allows you to implement predictive analytics and automate various tasks. At the same time, there is a shift in the market towards interworking and integration of smart home devices. Open source platforms and standardized protocols provide uninterrupted communication between equipment from different manufacturers. Various government initiatives also have a positive impact on the industry, including those aimed at improving household energy efficiency.

In 2023, the most popular type of smart home device was smart speakers. This can be attributed to the growing popularity of voice assistants such as Amazon Alexa, Google Assistant and Apple Siri. The segment of smart household appliances is developing dynamically, which includes refrigerators, ovens, washing machines, etc. Such devices are becoming more and more popular as they offer convenience, energy savings and remote control.

The study says there is fierce competition in the global smart home equipment market. Significant players include,,,,,,, Amazon Google Apple Samsung Xiaomi Honeywell Ubiquiti Networks Crestron Electronics,,,,, and others Panasonic. Siemens Legrand Schneider Electric Companies are constantly developing and improving their products to meet the changing needs of customers. Geographically, the leader is North America due to the high pace of technology adoption and developed infrastructure. The demand for To Europe energy-efficient and convenient solutions is growing, and in the Asia-Pacific region, the development of the industry is facilitated by urbanization and an increase in disposable incomes of citizens. South America, the Middle East and, while having Africa comparatively small shares, have significant potential for future growth.

In 2024, the total sales of smart solutions are estimated at $100.67 billion. In the future, according to Market Research Future analysts, the CAGR (compound percentage CAGR) value in the global smart home equipment market will be 14.39%. Thus, by 2032, global costs could reach $295.2 billion.^[2]

Global Smart Home Market Reaches $102.3 Billion

In 2023, the global market for technology and smart home products reached $102.3 billion. The industry is growing rapidly around the world, driven by technological advances and changing consumer lifestyles. This is stated in a study by BCC Research, the results of which were published in February 2024.

It is noted that the demand for smart home devices is growing around the world. Such gadgets and devices provide automation, security and energy efficiency. Solutions that can be easily integrated into existing infrastructure at home are in demand. Users are attracted by the ability to control this equipment remotely using a smartphone or voice assistants.

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In North America, the smart home segment has seen a surge in demand for security systems and smart technology. Consumers are willing to invest in devices that increase home protection and save energy. There is also a growing interest in smart lighting solutions in the market, which can be customized to suit different scenarios - such as depending on mood or home setting.

In Europe, the focus is on sustainable development and energy efficiency. Consumers are increasingly using smart thermostats, energy monitoring devices and solar panels to reduce carbon dioxide emissions and lower energy costs. In addition, there is a tendency to introduce smart home solutions that help provide comfort for older dwellers.

In Asia Pacific, the smart home market is driven by rapid urbanization and middle-class population growth. Consumers are looking for devices to help improve comfort with a fast lifestyle. The market is recording an increase in demand for intelligent entertainment systems, robotic vacuum cleaners and smart kitchen appliances.

At the same time, as noted, each region has its own characteristics of the development of the technology industry and smart home products. So, in North America, the market is highly competitive, and a wide range of products and services are available to consumers. In Europe, data privacy requirements play an important role in shaping consumption dynamics. In Asia Pacific, the market is fragmented as local and international players actively compete with each other.

It is said that the development of the smart home market is influenced by macroeconomic factors such as GDP, disposable income and housing trends. As the economy grows and consumer welfare improves, demand for smart home devices is expected to grow. In addition, the adoption of smart home technologies around the world is facilitated by government initiatives and incentives aimed at improving energy efficiency and a sustainable lifestyle. On the other hand, the deterrent is a lack of consumer awareness. Statistically, one in five people in the world say they don't know enough about smart home technology to make a purchase. The key obstacle in implementing smart home solutions is price: more than half of consumers worldwide say they are not ready to pay more for a smart home product than for its standard version.

Still, the industry continues to evolve. Analysts at BCC Research predict that the CAGR (compound percentage CAGR) from 2023 to 2028 will be 10.3%. As a result, by the end of the period under review, the market volume will reach $166.7 billion.^[3]

2022

Market drop to 871.7 million - IDC data

In 2022, shipments of smart home devices decreased by 2.6% compared to the previous year - to 871.8 million units. The corresponding indicators are given in the IDC study, the results of which were released on March 31, 2023.

The supply of products such as set-top boxes, monitoring and security systems, smart lighting devices, smart speakers, thermostats, etc. is taken into account. It is said that in 2022, this industry for the first time in history demonstrated negative dynamics on an annualized basis. This is due to macroeconomic difficulties, high inflation, disruption of supply channels and reduced purchasing power. In addition, there is a lull in the market after rapid growth in 2020-2021, when consumers around the world actively purchased TVs and devices for digital entertainment, while in self-isolation amid the COVID-19 pandemic. Shipments of smart TVs, which are the largest category of smart home equipment, declined 4.3% in 2022.

The global market for smart home products is experiencing a period of instability. Persistent disruption due to supply chain issues, inflation and economic challenges impacted the industry in 2022 and is expected to have a negative impact for the foreseeable future. But despite these limitations, consumers are increasingly purchasing smart devices to improve quality of life at home and beyond, said Adam Wright, IDC research manager.

video surveillances With the exception of TVs, most other categories of smart home solutions, such as cameras, doorbells and smart locks, and smart displays, are expected to grow due to economic recovery and increasing demand in emerging markets.^[4]

Smart Home Devices Market Dips 2.6%

On December 22, 2022, IDC published the results of a study of the global market for smart home devices - monitoring and security systems, smart lighting devices, thermostats, smart speakers, video solutions, etc.

According to estimates, in 2022 the volume of the industry in unit terms will decrease by 2.6% - to 874.0 million units. Moreover, the main blow will fall on segments of smart speakers and products for video entertainment, such as set-top boxes. This is due to constant disruptions in supply chains due to a shortage of electronic components, as well as restrictions in a pandemic. In addition, in the current macroeconomic situation, consumers began to save money, which negatively affected purchasing power.

Smart Home Devices Market Dips in 2022

Looking ahead, we predict that volatility will continue to hold back market growth in 2023 and beyond, "says Adam Wright, senior research manager at IDC Smart Home and Office Devices.

Despite the reduction in supplies, the segment of video devices remains the largest: deliveries here in 2022 are expected at 296.1 million units, and the share in the total sales of smart home products is approximately 33.9%. In second place will be monitoring and security systems with 188.6 million units sold and 21.6% of the market. This is followed by smart dynamics, the shipments of which will reach 116.4 million units, the share - 13.3%. Intelligent lighting devices will account for 94.7 million units (10.8%). Another 24.8 million will be thermostats - 2.8% of the world market. Sales of all other smart home products are estimated at 153.5 million, their total share is 17.6%.

Smart Home Devices Market Dips in 2022

Although it is predicted that the industry will return to positive dynamics in 2023, the increase will be relatively small - at the level of 4.6%. At the same time, most of the growth will occur in emerging markets, as well as. China Analysts say consumers in developed markets such as are USA losing interest in smart speakers, with demand for these gadgets projected to shrink in the long term in such regions. At the same time, smart speakers will continue to be in demand in emerging markets and in some European countries. On the other hand, good demand is expected for home monitoring and security solutions such as cameras, doorbells and door locks, as well as smart lighting and video entertainment products.

Between now and 2026, IDC analysts forecast a CAGR (compound percentage CAGR) of 8.0%. If these expectations are met, in 2026, the supply of products for the smart home will reach almost 1.2 billion units. Of these, approximately 325.9 million, or 27.4%, will be accounted for by video entertainment devices. Another 266.1 million units will be monitoring and security systems - the market share of this category is predicted at 22.4%. The supply of intelligent lighting devices, according to IDC, in 2026 will reach 213.5 million units, their share is 18.0%. Shipments of smart speakers will increase to 132.9 million units, their market share - up to 11.2%. Thermostat sales are expected at 31.3 million units, which will correspond to 2.6%. Deliveries of all other smart home devices in 2026 are estimated at 219.3 million units, which will provide 18.4% in total sales. At the same time, the largest CAGR value is predicted in the smart lighting segment - 22.6%. In the sector of monitoring and security systems, this figure will be 9.0%, in the field of thermostats - 6.0%.^[5]

2021: Sales of home security systems in the world reached $55.8 billion

The global market for home security systems is estimated at $55.8 billion at the end of 2021. Such data were provided in mid-February 2022 by analysts at ResearchAndMarkets.

According to them, the market is developing largely due to the growing awareness of home security systems. Emerging Internet of Things (IoT) and wireless technologies for home security systems are also driving the market growth. In addition, the increasing use of IP cameras for video surveillance purposes is contributing to the development of the market. In addition, growth is constrained by the high cost of home security systems associated with installation, maintenance and operation.

Sales of home security systems in the world reached $55.8 billion in 2021

The deployment of deep learning and artificial intelligence (AI), emerging smart cities initiatives around the world are creating opportunities for the market to grow, ResearchAndMarkets said. On the other hand, problems related to information privacy and systemic difficulties can negatively affect the growth of the market.

Among the most significant events in the home security market in 2021, analysts highlighted the following: Hangzhou Hikvision Digital Technology's collaboration with Gurtam to create a comprehensive telematic solution by integrating its mobile products with the Gurtam GPS tracking platform, as well as Allegion's purchase of certain Astrum Benelux assets.

By product type, the market is divided into fire protection systems, video surveillance systems, access control systems, security alarm systems, etc. Increasingly, these systems are being combined into a single smart home infrastructure for convenient and effective housing safety management. The largest market for such equipment in 2021 was North America. She is expected to maintain leadership in the years to come.^[6]

2020: Global Smart Home Devices Market Growth by 4.5%, to 801.5 Million - IDC

The global market for smart home devices in 2020 amounted to 801.5 million units, an increase of 4.5%. Such data are provided in the research company IDC.

Despite the COVID-19 coronavirus pandemic, demand for smart home devices has remained quite stable throughout 2020, says IDC analyst Adam Wright, quoted by the press service. - Yes, the market faced some difficulties due to the increased unemployment rate, uneven economic recovery and isolation measures in different parts of the world. Nevertheless, an increase was recorded in all categories of smart home devices compared to 2019.

The specialist linked the positive dynamics with the shift in consumer preferences, which occurred against the background of restrictions due to the pandemic. Unable to spend on travel, trips to restaurants and movies, people used the available funds to buy devices to increase comfort in their homes and home entertainment.

Solutions designed for video entertainment (televisions and set-top boxes) in 2020 accounted for the largest volume of supplies of equipment for a smart home - 296.3 million units, or 37% of the total. Supplies of equipment for monitoring and safety at home (smart cameras, locks, gate control modules, security and fire alarms, leak protection systems, etc.) reached 164.2 million units with a share of 20.5%. The third largest category was smart speakers, which by the end of 2020 were sold in the amount of 130.7 million units (market share - 16.3%).

In 2020, the global market for smart home devices grew by 4.5%, to 801.5 million units

According to the researchers, the demand for TVs and extenders will grow due to two main factors, including:

• lower equipment prices;
• expansion of functionality (support for 8K, high refresh rate and HDR technology, integration with voice assistants and streaming services).

The main barriers to the development of the entire market are as follows:

• quite high cost of smart home solutions;
• lack of consumer awareness of smart home solutions and devices, their characteristics, benefits of use, terms of purchase;
• concerns about privacy, data protection;
• social barriers associated with changing the usual way of life, concerns about the use of complex smart devices.

Smart Home Device Volumes (Video Development, Home Security, Smart Speakers)

In addition, in 2020, the "critical mass" of smart home users required for accelerated market growth has not yet been achieved.

Analysts at ABI Research say that despite a decade of double-digit annual growth, the smart home market will remain at a standstill until it moves to exploit its richest resource, data. According to experts, in 2020 the industry was in the earliest stages of using smart home data, which will help offer goods and services that are more valuable to consumers.

There are only expensive and limited ways to access even some of this data. But the emerging understanding that losing billions of dollars in potential benefits needs to be addressed, says Jonathan Collins, director of research at ABI Research.

IDC believes that the market for smart home equipment will remain growing. Until 2025, deliveries of smart home devices will grow on average by 12.2% per year and by the end of the period should exceed 1.4 billion units. The rise is facilitated by the desire of consumers for additional comfort and automation, which is provided by smart home appliances.^[7]

2019: Strategy Analytics forecast

User spending on equipment, services and smart home installation in 2019 will reach $103 billion. With an average annual market growth rate (CAGR) until 2023 of 11% by the end of this period, the market volume will reach $157 billion.

Device spending in 2019 will amount to 54% of the market ($55 billion), and by 2023 it will reach $81 billion (CAGR + 10%). This was announced in September by analysts at Strategy Analytics.

Experts named the largest players in the market: Interactive security, ADT, Comcast and Vivint, Centrica Connected Homes, Deutsche Telekom, Verisure, Korea Telecom, LG U +, Xiaomi, China Telecom, Panasonic and ITSCOM.

At the end of 2018, more than 200 million households used smart home systems. By 2023, the number of such households will grow to 300 million. By this time, one smart home will account for 21 smart devices, or 6.4 billion worldwide.

2018: European market growth 23.1% to 88.8 million - IDC

The volume of the European market for smart home devices in 2018 amounted to a record 88.8 million units, an increase of 23.1% compared to 2017. Such data analysts IDC released on April 11, 2019.

They looked at smart TVs, multimedia set-top boxes, home surveillance and security systems, smart speakers, smart lighting systems and thermostats.

The largest manufacturers of smart home devices, IDC data

Sales of smart home equipment in Western Europe increased by 14.3%, in Central and Eastern Europe (CEE; including Russia) - by 22.7%. Shipments of smart speakers in CEE jumped 127.8%.

Demand for smart speakers in CEE is growing, but their penetration level remains lower compared to Western Europe, says IDC analyst Jan Prenosil. - One of the main reasons for this is the lack of support for local languages, which is crucial for the accelerated implementation of equipment in the region. By the end of 2019, Google plans to introduce support for more than 30 languages, and translation into other languages will increase the demand for smart speakers even more.

According to experts, by 2023 the volume of shipments to the region of various smart home devices on the European market will exceed 187 million units. If the forecast is correct, the average annual growth rate (CAGR) in the market in question between 2018 and 2023 will be 16.1%.

The largest segment of the smart home equipment market in Europe is video products, whose share in 2018 exceeded 61.2%. In second place are smart speakers (18.1%), in third place are home security systems (10.3%), in fourth place are lighting solutions (4.8%). Thermostats in 2018 accounted for 2.6% of the supply of equipment for a smart home, according to IDC.^[8]

2017

Market growth of 16% to $84 billion - Strategy Analytics

At the end of May 2018, Strategy Analytics published some excerpts from the 2018 Global Smart Home Market Forecast study on the smart home market. Global spending on related equipment, systems and services in 2017 reached $84 billion, an increase of 16% compared to 2016, when sales were measured at $72 billion.

By the end of 2017, the number of households using smart home solutions worldwide was 164 million, compared to 136 million a year earlier.

Global Smart Home Market Growth Dynamics, Strategy Analytics Data

The market continues to evolve, says Strategy Analytics analyst Bill Ablondi. - Consumers are becoming more aware of such technologies, they are becoming more intuitive, prices are falling. However, there remains a high level of fragmentation associated with the fact that a huge number of companies compete for smart homes users. Who can ultimately achieve growth in this market remains to be seen.

The study reports that new products from big tech companies like Amazon, Google, ADT and Samsung are contributing to the spread of smart home in North America. In the European market, demand is fueled by Centrica Connected Homes (Hive system), Deutsche Telekom (Magenta Home), eQ-3 and Enco (Toon). In Asia Pacific, Xiaomi, LG U +, iTSCOM and Panasonic are driving the market.

Analysts call North America, which accounts for 41% of expenses, the largest market for smart home solutions.

According to experts, from 2018 to 2023, the global market for smart home devices, systems and services will grow by about 10% annually and reach $155 billion by the end of this period of time, and the number of households using such technologies will increase to 293 million.^[9]

Market size of $162 billion - IDC

In 2017, more than 433 million smart home devices were produced in the world, and in monetary terms the volume of this market exceeded $162 billion. Such data were presented by experts from the analytical company IDC at the end of March 2018.

The most extensive category of the smart home device market, which accounts for about three-quarters of the total volume in money, is video entertainment systems, including smart TVs, digital multimedia set-top boxes and other video devices with Internet connectivity. According to IDC estimates, in 2017, revenue in the Video Entertainment segment amounted to more than $133 billion. The leaders in the TV subcategory last year were Samsung and LG Electronics, and Amazon, Google and Roku became the leading manufacturers of media adapters.

Smart Home Devices Market Segments, IDC Data

The second most important category is home surveillance and security systems, which include network-connected locks, surveillance cameras, doorbells, humidity sensors, etc. In 2017, the contribution of this segment to the total turnover in the market of smart home devices amounted to $4.27 billion.

In third place in terms of share in money are smart speakers like Amazon Echo and Google Home. Analysts call this segment the fastest growing market category in question. According to the forecast, from 2017 to 2022, global revenue from the sale of "smart" speakers with built-in voice assistants will increase by an average of 32% and by the end of the period will reach $17.4 billion. For comparison, in 2017 this figure was equal to $4.4 billion.

Analysts have included smart lighting systems like Philips, General Electric (GE), IKEA, as well as smart thermostats, which are manufactured by Nest and Ecobee, among the five most purchased smart home devices. In 2017, sales of these types of products brought in $1.12 billion and $1.77 billion, respectively.^[10]

Notes