The market growth is attributed to the rising penetration of the Internet of Things (IoT) and Internet connectivity in homes. Moreover, the trend of modern technologies, such as Artificial Intelligence (AI), being integrated with smart homes has enabled more advanced and digitally smart devices for better living.

Smart phones directly linked to smart home growth

In addition, the growing penetration of smartphones is driving the market as smart home devices can be controlled through a smartphone, thereby enabling ease of access and usage. Furthermore, the trend of automation in daily mundane tasks is expected to support market growth significantly. The rising need for home security has prompted the use of AI-powered smart home devices. Facial recognition and threat analysis are among the features included in these gadgets that are expected to drive the demand for smart home solutions. Asia Pacific is expected to emerge as the fastest-growing region over the forecast period.

This is mainly owing to the improved standards of living and increased consumer disposable income levels in the region. The rapid penetration of the internet, smartphones, and other digitally advanced equipment in the region is also expected to drive market growth. Furthermore, the increased demand for smart speakers, such as Siri and Alexa, significantly impacts the region’s growth. In addition, the trend of luxurious lifestyles in developing nations in the region, due to increased disposable income and personal choice among consumers for smart devices, is propelling the market growth.

Some of the key smart home market highlights included in the findings are as follows:

• Based on products, the security & access controls segment recorded the highest revenue share in 2022 due to the increased demand for advanced security solutions and the necessity to restrict access to rooms or safes with valuable items and goods

• The wireless protocols segment is expected to grow at the highest CAGR over the forecast period as wireless technology is continuously undergoing extreme developments in terms of connectivity and latency

• The new construction application segment is expected to register the fastest CAGR over the forecast period as product installations are easier in new constructions with prior knowledge of wall placements and wire/power outlets

• The Asia Pacific region is anticipated to grow at the highest CAGR during the forecast period due to the increasing internet and IoT devices penetration

Key players

Major players found to be active in this sector and included by the analysts in the study, include, LG Electronics, Inc.,Siemens AG, Amazon.com, Inc., Google Nest, Samsung Electronics Co. Ltd., Schneider Electric SE, Legrand S.A., Robert Bosch GmbH, Assa Abloy AB, Sony Group Corporation, ABB, Ltd., Philips Lighting B.V., and Honeywell International, Inc.