An increasing number of internet users and growing adoption of smart devices, an increase in disposable income in developing economies, together with the increasing importance of home monitoring in remote locations, a growing need for energy-saving and low carbon emission-oriented solutions, and growing concerns about safety, security, and convenience among general population are additional factors also driving the smart home market.

New installations lead the way

The new installation segment accounted for the largest share of the smart home market in 2029. New installations involve the installation of state-of-the-art lighting systems with modern LED drivers and ballasts, sensors, switches, dimmers, and gateways. While retrofit installations do not, new installations entail the complete replacement of a traditional lighting system by phasing out an existing conventional lamp and its associated controls and fixtures and the introduction of new lamps and associated controls and fixtures. A new installation transforms the whole system, resulting in an entirely different setup.

Main supply through third party chain

Indirect sales channels or third-party service providers hold a major share of ~64% of the smart home market. Most players in the market have strong sales channels and distribution networks to provide services to their end users. Indirect sales include the sales of smart home products through both online and offline modes. The offline sales channel comprises third-party cellular network carriers, wholesalers, retailers, and value-added resellers, whereas the online sales channel involves sales through e-commerce platforms and third-party retailers.

Smart kitchens

Smart refrigerators are expected to capture the largest share in the smart home market during the forecast period. Smart refrigerators find huge adoption in smart kitchens owing to advanced features that raise convenience, efficiency, and connectivity. These refrigerators provide functions such as remote temperature control, inventory tracking, and automatic grocery ordering, all of which make household management easier. The devices are integrated into touchscreens and voice assistants that can grant access to recipes, shopping list management, and other smart home devices. Smart refrigerators are also in great demand due to their energy efficiency and the ability to reduce food wastage by monitoring expiration dates.

Main players in the sector

The key companies that offer smart home devices, and that are covered in the report include Johnson Controls Inc., Honeywell International Inc., Schneider Electric, Siemens, and  Assa Abloy.