Home Automation Market is Poised to Skyrocket to Reach

0

New Delhi, May 09, 2024 (GLOBE NEWSWIRE) — As per Astute Analytica’s latest report, the global home automation market reached a valuation of US$ 112.7 billion in 2023 and is estimated to grow at a CAGR of 22.8% from 2024 to 2032, projected to attain a valuation of US$ 715.6 billion by 2032.

The home automation market is experiencing a surge in popularity, fuelled by consumer desire for convenience, security, and energy efficiency. In the United States alone, smart home adoption is rapidly increasing. As of 2024, there are a staggering 69.91 million households actively using smart home devices, a significant jump from 63.43 million in 2023. By 2028, this number is expected to skyrocket, exceeding 100 million smart home-equipped households in the US. This growth is mirrored on a global scale. The projected 3.5 billion 5G connections worldwide by 2025 will likely enhance smart home connectivity and functionality. Faster data transfer speeds will enable smoother operation, while the anticipated growth of IoT devices to a staggering 29 billion by 2030 will further expand the reach and capabilities of smart home ecosystems.

Get Access to Sample Now: 

Consumer preferences are also shifting towards smart home technology. Today, 7 out of 10 homebuyers actively seek smart homes, and a remarkable 78% are willing to pay a premium for them. This trend is driven in part by a younger adopter base, with approximately 75% of smart home consumers being under 55 years old. Even renters are embracing smart homes – a significant 82% desire at least one smart device, and for 35%, owning one is considered highly important. Higher-income households also demonstrate a stronger interest, with 65% of those earning over $100,000 expressing excitement compared to 47% of those earning below $50,000.

Looking at popular device categories in the global home automation market, consumer electronics lead the market, accounting for over a third of the share. This includes smart speakers with virtual assistants for voice control and smart TVs for streaming services and content management. Security and energy management are other key areas. Smart cameras, doorbells, locks, and thermostats enhance home security and promote efficient energy use. Lighting control is another popular application, with smart lighting devices offering remote control over brightness and color adjustments. Smart appliances and plugs enable remote monitoring, control, and energy usage tracking, while smart sprinkler systems optimize watering schedules for outdoor spaces, promoting water conservation.

Innovation is On the Rise, But Data Security is Worrying Home Automation Providers and Consumers

The home automation market is also witnessing exciting innovations. The smart thermostat market has seen impressive growth, expanding at a rate of 30% annually since 2018, reflecting increasing consumer interest in energy efficiency. New home construction is increasingly incorporating smart home automation features, such as built-in security systems or voice assistants, catering to the growing demand. The future holds promise for even more intelligent homes. Integrating ambient sensing and AI is expected to transform smart home experiences, creating environments that adapt to individual needs and preferences. Smart home camera adoption is another strong indicator of evolving trends. A significant 55% growth was observed from 2021 to 2022, highlighting the increasing importance of home surveillance.

However, data security remains a concern for consumers across the global home automation market. Nearly two-thirds (63%) express worry about data leaks from their smart home devices, and a majority of Americans are unwilling to install smart devices that collect personal data even for an insurance discount.

Home Automation Adding Values to Properties

The economic impact of smart homes is undeniable. Smart technology can add significant value to real estate. Astute Analytica’s studies show that smart homes can command a price increase of around £2,000 when offered for sale. While the average cost of installing a smart home device is $927, with smart home security systems averaging a higher cost of $2,850, affordability is expected to improve. Nearly half of consumers anticipate a drop in smart home device prices within the year, suggesting a future of increased accessibility for this technology.

Key Findings in Global Home Automation Market

Market Forecast (2032) US$ 715.6 Billion
CAGR 22.8%
Largest Region (2023) Asia Pacific (42.91%)
By Type Hardware (59.14%)
By Technology Wireless (66.23%)
By Application  Energy Management (36.89%)
By End User Residential (63.93%)
By Building Type Apartment Building (42.88%)
By Construction Type New (78.63%)
By Distribution Channel Offline (78.85%)
Top Trends
  • Easy upgrades and personalization offerings further boost the home automation market expansion.
  • The emergence of trending technologies, along with SaaS-based applications, cloud networking, network analytics, DevOps, and virtualization.
  • Increasing adoption of smart home devices for enhanced convenience, security, and energy management.
Top Drivers
  • Rising consumer demand for convenience, comfort, and energy efficiency in homes.
  • Advancements in wireless technologies, such as Wi-Fi, Zigbee, and Z-Wave, enabling seamless device connectivity.
  • Government initiatives and regulations promoting smart home technology adoption for energy conservation and sustainable living.
Top Challenges
  • Perceived intrusiveness, hacking fears, expensive tech, and interoperability issues are key challenges that deter the fast adoption of home automation systems.
  • Concerns regarding data privacy and security vulnerabilities associated with connected devices.

Zigbee and Z-Wave: Wireless Technology Remain at Top as Primary Connectivity Mode in Home Automation Market, Contribute 66.23 % Market Share

The home automation market is surging, and wireless technology plays a critical role in this growth. Zigbee and Z-Wave are key protocols enabling communication between various smart home devices. Zigbee boasts an impressive capacity, supporting up to 65,000 devices on the 2.4 GHz frequency band, while Z-Wave allows for up to 232 devices within a 330-foot range and features mesh networking for enhanced connectivity. Recent advancements in wireless technology are further fueling the smart home revolution. Low-power wireless technologies like Zigbee and Z-Wave were specifically designed for smart home applications, offering both low power consumption and extended range. The latest developments include advancements in mesh networking for seamless connectivity, open-source protocols for wider adoption, and the ability to connect thousands of devices under one system.

Convenience and flexibility are major advantages of wireless systems, which are responsible for gaining momentum in the home automation market. Over 80% of consumers prefer them due to the ease of installation and adaptability. Wireless devices can be placed anywhere, with 70% of smart home devices being wireless. For instance, a wireless smart thermostat can be installed in minutes without any wiring and easily moved to a different room if needed.

When it comes to connectivity and interoperability, Wi-Fi reigns supreme, used by 71% of smart home devices. Zigbee and Z-Wave are the leading protocols designed specifically for smart home automation, with Zigbee supporting over 2,500 devices and Z-Wave exceeding 3,300. Consumers increasingly seek interoperable systems, with 64% desiring the ability to integrate devices from different brands. As an example, using Zigbee, a smart lock, light bulb, and thermostat from various manufacturers can all be controlled from a single smartphone app.

  • Cost-Effectiveness, Technology Advancements, Energy Saving and Security Makes it highly Desirable

Cost-effectiveness is another significant factor behind strong demand for wireless systems in the home automation market. On average, they are 30% less expensive to install than wired systems. The average cost of a wireless smart home device is $179, compared to $301 for a wired device. Cost is a major factor for consumers, with 62% citing it as a key influence on their purchasing decisions. Installing a wireless security camera, for example, is significantly cheaper than running Ethernet cables and hiring an electrician for a wired camera.

Technological advancements continue to propel the market forward. The latest Wi-Fi 6 standard offers up to 4 times the range and supports over 50 devices, making it ideal for home automation. Zigbee 3.0 and Z-Wave 700 series chips boast double the battery life and 10 times the range of previous versions. Consumers are receptive to these advancements, with 79% more likely to purchase smart home devices equipped with the latest wireless technology. As an example, a Zigbee 3.0 smart door sensor can operate for 2 years on a coin cell battery with a 100-foot range, a significant improvement over older sensors.

Security and energy savings are additional factors driving home automation market growth. Wireless smart home security systems can reduce home insurance premiums by up to 20%, with security being a top reason for adopting home automation according to 75% of consumers. Smart thermostats can generate substantial energy savings, with an average of 10-12% on heating costs and 15% on cooling costs. These savings resonate with consumers, as 45% cite energy efficiency as a key benefit of smart home devices. For instance, a wireless smart door lock can automatically lock the door when you leave and send an alert to your phone if someone tries to break in.

Smart Home Energy Management is A Booming Market, To Contribute More than 36.89% Revenue

The global home automation market is experiencing explosive growth in energy management devices, fueled by a combination of consumer demand, technological advancements, and government initiatives. Wherein, smart thermostats are leading the charge, with projections indicating a penetration rate of 43% in North American households by 2025. Their impact extends beyond individual homes, with energy management systems demonstrating the ability to reduce hotel energy costs by up to 20%. This efficiency is driving adoption in both commercial and residential sectors. Growing consumer interest in energy savings is a key driver of this market surge. Roughly 70% of consumers cite cost savings as their primary motivation for purchasing energy management devices. This interest translates to behavior, with a survey revealing that 45% of homeowners with smart home technology actively use their devices daily for managing energy consumption. Furthermore, 60% of consumers express a stronger preference for smart home devices that offer energy management functionalities.

The benefits extend beyond convenience. The average household in the home automation market equipped with a smart thermostat can expect to save approximately 10-12% on heating and 15% on cooling annually. These savings translate to real results, with a resounding 85% of users with smart home energy systems reporting noticeable reductions in their energy bills.

Technology continues to play a pivotal role in propelling the market forward. The latest smart thermostats boast the ability to self-program based on user behavior, leading to an estimated 20% increase in energy efficiency. Smart HVAC systems are projected to experience significant growth as well, with a CAGR of 15.1% anticipated from 2023 to 2030. The integration of artificial intelligence (AI) in energy management devices holds even greater promise, with the potential to reduce energy consumption in homes by up to 25%.

The Internet of Things (IoT) is another major contributor to the home automation market growth, with early adopters experiencing a 40% reduction in energy usage through its implementation. Smart lighting, a crucial element of energy management, is projected to experience its own boom, with the market anticipated to reach $24 billion by 2024.

European Union’s Energy Efficiency Directive are pushing the use of smart meters and energy management systems

Government initiatives are also playing a critical role in accelerating adoption. Incentive programs, such as tax rebates for smart home devices, have been shown to increase adoption rates by 35% in participating regions. Regulations like the European Union’s Energy Efficiency Directive are pushing the use of smart meters and energy management systems. Similarly, the US ENERGY STAR program, which certifies a wide range of smart home devices, has led to a 10% increase in market demand. The UK government’s mandate for energy suppliers to install smart meters in every home by 2024 is another example of how policy can drive market growth. China’s five-year plan, which includes the installation of over 300 million smart meters, further emphasizes the global commitment to energy efficiency.

Request Customization of the Report: 

Asia-Pacific is the Undisputed Leader in Home Automation Market With Over 42.91% Market Share

Asia-Pacific market dominance is driven by several factors. By 2025, South Korea’s smart home penetration is expected to reach 35.8%, reflecting a significant portion of households embracing this technology. Energy efficiency is a key focus. Japan anticipates 17% of households adopting smart energy management systems by 2024, while China’s smart appliance market is projected to grow 49.5% by 2025. This growth is fueled by significant investments, with Chinese companies pouring over $6 billion into home automation IoT technologies in 2023 alone.

Governments are actively promoting adoption. India’s plan to install 250 million smart meters by 2025 and Singapore’s Smart Nation initiative exemplify this commitment. Consumers are enthusiastic, with 75% of Australians willing to pay more for a smart home. Robust infrastructure, like South Korea’s 93% broadband penetration rate, lays a strong foundation for widespread adoption.

Rapid urbanization in Asia-Pacific home automation market, with over 60% urban population in regions like East Asia, is driving smart city and smart home initiatives. The young, tech-savvy population (median age of 28 in India) is a perfect demographic for smart homes. E-commerce flourishes, with Southeast Asia experiencing a 63% surge in sales in 2020, creating a thriving market for online smart home device purchases. High smartphone penetration rates (over 90% in Malaysia and Singapore) create immense potential for mobile-controlled systems. Being a manufacturing hub for electronics offers Asia-Pacific home automation market a cost advantage in producing smart home devices. This affordability fuels wider adoption. Additionally, South Korea and Japan rank among the top 5 R&D spenders globally, ensuring a steady stream of new technologies. Sustainability concerns are another driver, with countries like Japan investing in smart homes to reduce CO2 emissions.

Global Home Automation Market Leaders

  • ABB Ltd.
  • Amazon, Inc.
  • Apple Inc.
  • ASSA ABLOY
  • Axis Communication AB
  • Comcast Corp.
  • Control4 Corp.
  • Google
  • Honeywell International, Inc
  • Hubbell Inc.
  • Ingersoll-Rand PLC
  • Johnson Controls International
  • Legrand S.A.
  • LG Electronics
  • Lutron Electronics Co. Inc.
  • Robert Bosch Gmbh
  • Samsung Electronics Co., Ltd.
  • Schneider Electric
  • Siemens AG
  • Sony
  • United Technologies Corporation
  • Kiddi
  • Other Prominent Players

Market Segmentation:

By Type

  • Hardware
  • Lighting Control
    • Relays
    • Occupancy Sensors
    • Daylight Sensors
    • Timers
    • Dimmers
    • Switches
    • Lighting Control Accessories and Other Products
  • Security and Access Control
    • Video Surveillance Systems
      • Cameras & NVRs
      • Software/Video Analytics
    • Access Control Systems
      • Biometric Access Control
      • Non-Biometric Access Control
  • HVAC Control
    • Smart Thermostats
    • Heating and Cooling Coils
    • Actuators
    • Smart Vents
    • Others
  • Entertainment and Other Controls
  • Home Healthcare
    • Health Status Monitors
    • Physical Activity Monitors
  • Smart Kitchen
    • Smart Coffee Makers
    • Smart Kettles
    • Smart Dish Washers
    • Smart Ovens
    • Smart Cooktops
    • Smart Cookers
  • Home Appliances
    • Smart Refrigerators
    • Smart Washers
    • Smart Locks
    • Smart Water Heaters
    • Smart Vacuum Cleaners
  • Smart Furniture
    • Smart Tables
    • Smart Desks
    • Smart Sofas
    • Others
  • Software
  • Services

By Technology

  • Wired
  • Wireless
    • Bluetooth
    • Wi-Fi
    • Zigbee
    • Dali
    • Others (z-wave & hybrid)

By Application

  • Security
  • Lighting
  • Entertainment
  • Healthcare
  • Energy Management
  • HVAC
  • Others

By End User

By Building Type

  • Single Family Homes
  • Apartment Building
    • Low rise
    • High rise
    • Skyscrapers
  • Villas/Bungalows
  • Others (mobile homes, cottages)

By Construction Type

By Distribution Channel

  • Online
  • Offline
    • Speciality Stores
    • Retail (Supermarkets/Hypermarkets)
    • Third Party Service Providers (Telecom, Security, OEMs)

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa (MEA)
  • South America

Purchase a Full Copy of the Report @ 

About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: [email protected]
Website: 
LinkedIn Twitter YouTube


            


link

Leave a Reply

Your email address will not be published. Required fields are marked *