Smart Home Market Industry Analysis Shows CAGR Of 14.5% By 2022
According to the report, the global smart home market was valued at around US$24.10 billion in 2016 and is expected to reach approximately US$53.45 billion by 2022, growing at a CAGR of slightly above 14.5% between 2017 and 2022. Smart home refers to a residential extension of building automation and involves automation of lighting, ventilation, heating, air conditioning and security as well as home appliances such as washer and dryers, ovens or refrigerators that use WiFi for remote monitoring. At present many new homes are being built with the additional wiring and controls which are required to run advanced home automation systems.
Rising need for consumer convenience, safety, and security, energy consumption is the major driver of the smart home market. The real estate industry is expected to spur the demand of the smart home market. However, in few regions, home automation products have reached saturation level which is the major restraints for the smart home market. Another factor which is hindering the smart home market growth is its high installation cost and lack of standardization. Furthermore, low awareness about home automation is hampering the growth of the smart home market. Nonetheless, high-end devices coupled with technologically advanced features will escalate the smart home market demand over the forecast period. cloud-based solutions also provide new opportunities to impel the demand of smart home market over the forecast period.
The smart home market is segmented into product, software, and region. By product the smart home market is segmented smart kitchen, security access control, lighting control, home healthcare, HVAC control and others. among this product, light control is dominating the smart home market owing to reduced electricity consumption in homes. The software is use in the smart home are proactive and behavior.
At present, North America is dominating the smart home market. Europe is witnessing significant growth due to increased demand for home appliances such as fitness band, wireless devices, and others. The major players in the smart home market in Europe are Siemens AG, ABB Ltd., Schneider Electric S.A., Ingersoll-Rand Plc, Tyco International Ltd., Legrand S.A. Asia pacific is expected to show the highest growth over the forecast period due to reducing constraints of the high installation cost of smart home appliances by continuous investment in R&D activities. Asia-Pacific region is witnessing significant growth due to a number of new residential projects and efforts for strengthening building infrastructure at a significant rate. Latin America is also expected significant growth due to economically developing countries.
The smart home market is classified on the basis of product and software. The products involved in smart homes are smart kitchen, home healthcare, lighting control, HVAC control, security and access control. From these segments, lighting control is expected to grow at highest CAGR as it reduces electricity consumption. On the basis of software, the smart home market is segmented into behavior and proactive software.
Some of the renowned participants in smart home space Ingersoll-Rand plc., Legrand, Siemens AG, Johnson Controls Inc., Schneider Electric SE , ABB Ltd., Acuity Brands, Inc., Samsung Electronics Co., United Technologies Corporation, Ltd., Nest Labs, Inc., Honeywell International Inc. and Crestron Electronics. Inc among others.