Smart Home Automation Market Analysis Report By Component, By Technology, By Application, By Region And Segment Forecasts From 2017 To 2025

Industry Insights

The global smart home automation market size was worth USD 46.15 billion in 2016. The market is estimated to be driven owing to the increasing adoption of automation technologies in the residential sector. The rising need for operating the homes from remote locations coupled with the exceptional experience provided by automation technologies are boosting the market growth.

Rising deployment of devices and systems in applications such as HAVC and energy management, smart kitchen, lighting, security, and entertainment are further projected to drive the market growth. Features such as safety, convenience, and connectivity have become paramount among consumers, thereby, driving the demand for automation technologies across residential buildings.

The rise in urbanization and geriatric population growth requires smart solutions to address the challenges. With the rapid penetration of smart homes, various applications, and several platforms, there lies a huge opportunity for growth in the future for the market. 

Moreover, the emergence of IoT that enabled machine-to-machine communication has further encouraged consumers to opt for home automation technologies. However, high cost incurred in installation and lacks of awareness about various technologies are impeding the market growth.

Component Insights

Depending on the component, the market is bifurcated into software, hardware, and service. Of them, the hardware division is projected to account for the largest market share by 2025. The service category is also likely to register significant growth over the forecast duration owing to the rising adoption of automation technologies for smart homes. 

Rapidly evolving smart homes automation systems are expected to integrate the software, hardware, and service, which, in turn, is anticipated to make the market more competitive.  Various systems for security, climate, and lights can be operated from any device. In addition, service providers are offering seamless integration of different automation components at home, thus, ensuring better consumer experiences.

Application Insights

Based on application, the smart home automation market is segmented into lighting, smart kitchen, HVAC and energy management, security, and entertainment. Among them, the entertainment category is projected to account for the largest share in the market. Additionally, the smart kitchen is projected to register considerable growth largely because of the huge demand for smart appliances. 

Further, various other factors such as energy preservation, button control, and growing focus on safeguarding the environment from polluting agents such as toxic wastes and greenhouse gases are anticipated to drive the market over the next few years.

Automation in smart homes offers various benefits such as easy extension, scalability, mobile devices integration, and remote control of various home functions. These features enhance the consumer experience, thereby, driving the market growth.

Technology Insights 

Depending on the technology, the market is categorized into wireless, cellular, and others. Of them, the wireless division is estimated to account for the largest share by 2025. The wireless technology requires low cost in setting up. Further, this technology is less invasive and convenient. These aforementioned factors are further anticipated to drive the segment growth.  

Along with advanced technology, the demand for cost-effective solutions has also increased over the past few years. IoT-enabled solutions are highly preferred by the majority of start-ups and gaining traction in smart home automation.

Automation of a smart home is about enhancing consumer experiences and providing them comfort. Technology advancement has ensured convenience along with making revolutionary changes and increasing the practical applications for different products.  

Regional Insights

North America is projected to account for significant market share largely because of the presence of well-established companies and a huge consumer base. The region held the largest market share in 2016 and is predicted to register a CAGR of 8% over the forecast period. Apart from North America, the Asia Pacific and Europe are likely to be the key market for smart home automation. 

Growing urbanization and rising consumers’ purchasing power make the Asia Pacific a promising region for investors. Further, the rising geriatric population and advancement in technologies are projected to drive regional growth over the next few years. 

Europe, on the other hand, is anticipated to be a lucrative region owing to the improving living standard of consumers that led to a rise in demand for energy management and HVAC. Further, the region is witnessing a surge in infrastructural development, which, in turn, is estimated to positively affect the market growth.

Smart Home Automation Market Share Insights

Major players operating in the market are Control4 Corporation, Siemens AG, Legrand SA, Schneider Electric, Lutron Electronics Co., Inc., Honeywell International Inc., Crestron Electronics, Inc., Control4 Corporation, and ABB Ltd among others. These players are emphasizing various strategic initiatives such as product development and up-gradation of existing product lines to gain a competitive edge in the market. 

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global smart home automation market based on applications, products, types, and regions:

• Component Outlook (Revenue, USD Million; 2014 - 2025)
    • Hardware
    • Software
    • Service

• Technology Outlook (Revenue, USD Million; 2014 -2025)
    • Cellular
    • Wireless
    • Others

• Application Outlook (Revenue, USD Million; 2014 - 2025)
    • Security
    • Lighting
    • Entertainment
    • HVAC & Energy Management
    • Smart Kitchen

• Regional Outlook (Revenue, USD Million; 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • UK
    • The Asia Pacific
        • China
        • India
        • Japan
    • South America
        • Brazil
    • MEA