Smart home market valued at over $160 billion by 2028

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The smart home market size is valued at USD 101.7 Billion in 2023 and is anticipated to be USD 163.7 Billion by 2028, with a CAGR growth of 10.0% over the forecast period, according to a new report from Marketsandmarkets. The researchers cite the key factors contributing to the growth of the smart home market as the rising number of internet users and the global increasing adoption of smart devices. Furthermore, the analysts also attribute the growth to a rise in disposable income in some developing economies.

Entertainment and security are key drivers

The rise in demand for audio and volume control devices is fuelled by their ability to handle and manage household entertainment systems. The development of wireless communication technologies is a crucial driver of the home theatre system control industry, promoting the growth of the smart home market for entertainment controls. The surge in demand for smart meters and smoke detectors, as well as the increasing popularity of smart plugs, smart hubs, and smart locks, are the some of the factors contributing to the growth of the other controls segment.

Indirect sales channels most popular route

The indirect sales channel category is expected to hold a significant portion of the smart home market in 2023 and is expected to grow at a faster CAGR during the forecast period. The majority of market players possess robust distribution networks and sales channels to cater to the demands of end-users. Indirect sales channels encompass both online and offline modes of selling smart home products. Offline sales channels comprise wholesalers, retailers, third-party cellular network carriers, and value-added resellers. On the other hand, e-commerce platforms are the primary online sales channels for smart home products.

Proactive predictive software and services

Proactive software focuses on a more anticipatory approach to automation. Instead of waiting for the tenant to take the initiative, proactive software predicts their needs and responds appropriately. For instance, a proactive smart home might automatically adjust the thermostat depending on weather forecasts or switch on the lights before the occupants arrive home. By anticipating needs before the residents are even aware of them, proactive software aims to enhance the home’s functionality and convenience.

Asia Pacific offers growth potential

The Asia Pacific smart home market presents a high growth potential, primarily due to robust economic growth, rapid urbanisation, and an increasing population, leading to an advanced infrastructure. The growth of Japan and South Korea in the market is attributed to their leading position in technological advancements in smart homes. The factors driving the market growth in the Asia Pacific region include evolving lifestyles, increased disposable income, rising geriatric population, increasing demand for smart building infrastructure in developing economies, a large consumer base, and rapid technological advancements in smart home products.

Main players

Honeywell, Siemens, Johnson Controls, Schneider Electric, and Ass Abloy are some of the major players mentioned by the researchers as being most prominent in this market sector. These players have implemented various strategies to extend their global reach and enhance their market shares.


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