Smart Home Devices Market Size, Share, Growth and Demand Forecast 2028

Smart Home Devices Market Insights

Zion Market Research has published a report on the global Smart Home Devices Market, estimating its value at USD 1482.41 Billion in 2023, with projections indicating that it will reach USD 6676.13 Billion by 2032. The market is expected to expand at a compound annual growth rate (CAGR) of 18.2% over the forecast period 2024-2032. The report explores the factors fueling market growth, the hitches that could hamper this expansion, and the opportunities that may arise in the Smart Home Devices Market industry. Additionally, it offers a detailed analysis of how these elements will affect market demand dynamics and market performance throughout the forecast period.

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Smart Home Devices Market Overview

The global smart home devices market accounted for USD 68.8 Billion in 2020 and is expected to reach USD 156.6 Billion by 2028, growing at a CAGR of 11.5% from 2021 to 2028.

A smart device is an electronic device that can communicate with other devices or networks using various wireless protocols such as Bluetooth, Zigbee, NFC, Wi-Fi, LiFi, and 5G, among others. Smart home devices are connected to each other and can be controlled by using a single central point, such as a smartphone, tablet, desktop, or game console.

The growth of the smart home industry is fueled by a variety of factors, including an increase in internet users, increased adoption of smart devices, rising disposable income in developed economies, and a rise in the need to save energy and decrease carbon emissions.

The recent trends in the smart home devices market focus on artificial intelligence and automation to provide domestic assistance in a new and innovative way while ensuring that all advanced technological tools and security are in place. Face recognition technology, video doorbells, remote-controlled locks, and ultra-modern burglar alarms are some trending security smart home devices.

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COVID-19 Impact Analysis

Due to the COVID-19 pandemic, more people started staying at home and making changes in their living environment resulting in the adoption of IoT technology. Stay-at-home directives transformed the way people interacted in their homes, causing them to rearrange their living space to fulfill new functional requirements such as working and studying at home, setting up at-home gyms, and discovering new ways to relax and enjoy themselves.

Growth Factors

The market for smart home devices is driven by the growing need to conserve electricity and reduce carbon emissions. Electricity is continually consumed by conventional devices until they are switched off. On the other hand, however, smart home devices are equipped with motion sensors that can sense the absence of people in a room for a specified period of time and switch off automatically, saving money and energy.

The smart home devices market is expected to grow as customers' preferences for video doorbells, voice-assisted devices, and security systems are growing over time. The increased adoption of smartphones due to the proliferation of the internet among the masses is one of the major factors behind consumers' IoT acceptance. As a result of the widespread use of internet-connected smart devices, the overall IoT market is with witness growth.

Device Type Segment Analysis Preview

The smart TV segment held a share of around 20% in 2020. This is attributable to the latest innovations in the user interface, content aggregation, and application development that come with smart TVs, such as the operating system that can run apps and widgets, which can stream videos and music. Smart TVs come with unified internet features and a wide range of digital computing and networking capabilities. Consumers can now use smart TVs to search, chat, browse, post, update, and download content. In the coming years, smart TVs are predicted to place a greater emphasis on experience design. The availability of consumption-ready content for consumers to use their smart TVs has been clinical in the demand surge.

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Application Segment Analysis Preview

The security and access control system segment will grow at a CAGR of over 12% from 2021 to 2028. This growth can be attributed to the globally rising crime rates driving the smart home security market. Nowadays, customers are placing a greater emphasis on safety and security services, especially in residential areas. Households prefer smart home devices such as smart locks, smart cameras, and smart lockers to be safer and more secure. The advent of the Internet of Things (IoT) and wireless technology, as well as the growing use of IP cameras for video surveillance, are also contributing to the growth. The increasing use of the internet, laptops, and smartphones is paving the way for IoT to be used in home protection through the use of smart applications.

Regional Analysis Preview

The European region held a share of over 22% in 2020. This is attributable to the increasing investments in infrastructure that have been undertaken to improve the standard of living in this region. Increased demand for heating, ventilation, and air conditioning systems coupled with energy management has significantly driven regional growth.

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The Asia Pacific region is projected to grow at a CAGR of over 12% during the forecast period. This surge is due to technological advancements that resulted in an increase in the adoption of smart home devices, especially in developing Asian countries, including China, Japan, and India, among others. Rapid digitization, Increasing awareness among consumers, growing need for energy consumption & emissions, and high penetration of smartphones paired with government initiatives such as the establishment of smart cities in countries such as India, Japan, and China are some of the prominent drivers for the growth of smart home devices market in the Asia-Pacific region.

Smart Home Devices Market: Report Scope

Key Market Players & Competitive Landscape

Some of the key players in the smart home devices market are

• Schneider Electric,
• Honeywell International Inc,
• Johnson Controls International,
• United Technologies Corporation,
• Siemens AG,
• Amazon Inc.,
• Apple Inc.,
• Google, Samsung Electronics Co. Ltd.,
• LG Electronics, 
• Sony among others. 

Companies in the smart home technology industry have traditionally used a subscription model, in which users pay a monthly charge for a fixed amount for the services. However, now they are constantly looking at new ways to monetize smart home technologies, such as service bundling, audio advertising, and using IoT data.

Also as the device margins are slowly fading, companies are relying on the stickiness aspect by providing new solutions and value-added services to consumers in addition to device sales.

The global smart home devices market is segmented as follows:

By Protocol

• Wi-Fi
• Bluetooth
• Others

By Device Type

• Smart Thermostat
• Smart Light
• Smart TV
• Smart Lock
• Others

By Application

• Lighting System
• Security and Access Control System
• Entertainment System
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa