Smart Homes Market Overview:
Expanding human population is inversely proportional to the amount of natural resources present on earth. The world’s non-renewable energy resources are depleting, while demand for power is increasing. As per United States Energy Information Administration, global energy requirement is expected to rise by 28% by the year 2040. This statistic is alarming in accordance with the ever-increasing human population that is consuming energy at an extraordinary rate owing to technological advancement. In a region like Asia where automotive and electronics industries have taken center stage, countries including India and China account for more than 60% of the expected 28% increase in global energy requirement. Smart technological systems, thus, have become the need of the hour. Key players in the renewable resources market, and government officials around the world have exhorted all kinds of industries to come up with sustainable technological systems that conserve environment while keeping the smooth functioning of our daily lives intact.
Smart homes is one such noticeable invention in a series of sustainable products which have been recently unveiled in the global market. Using the Internet of Things technology, smart homes utilize automation, and simplify our home environments to a large extent. The global smart homes market size in 2018 was estimated to be between $70 billion to $75 billion.
The smart homes market is expected to grow with an outstanding CAGR of 12%-15% during the forecast period of 2019-2025. This is largely credited to North America which holds a regional smart home market share of 25%-28%. Automation, and electronic companies in North America are leaving no stone unturned in bolstering the market growth.
Smart Homes Market Outlook:
Any house that uses home automation technology is called a smart home. On entering a smart home, one can see connectivity on nearly all devices. Internet of Things, the ability to impart connectivity to any non-internet-enabled device is the building block of a smart home. Through that, one can sit back and control everything in their house with a remote control, thus making human life simpler, and better. Nearly all the devices like thermostats, water detectors, yale locks, smart sensors, humidifiers, smoke alarms, wireless doorbells are connected to a person’s personal phone or tablet, through which they can control the devices irrespective of whether they’re inside the home, or outside it. Key players in the market are investing extensively in this technology, and are coming up with newer products that could supplement home automation technology. Google Home, a set of speakers released by Google in 2016 enable a user to control their home’s environment simply through a voice command.
Smart Homes Market Growth Drivers:
A Helping Hand for the Handicapped Society
According to the World Bank, around one billion people in the world have experienced some or the other kind of disability. Facing difficulty in accessibility is an everyday phenomenon for handicapped people, and they are comparatively more susceptible to socioeconomic outcomes. Needless to say, smart homes is a one-step solution for them to lead a comfortable lifestyle. Through smart homes, they can easily control their house’s environment without facing much difficulty in mobility. Smart homes also benefit the geriatrics population tremendously by reducing a need for a manual helping hand, and simplifying things for them at the touch of a button. Smart homes market generates high demand from all architectural structures involving the handicapped, and geriatrics population.
Smart Homes Market Challenges:
The biggest challenge faced by the smart homes market is security risk. Since nearly everything in a smart home is connected to the internet, there is an increased threat of cyber-crime. Every device in a smart home can easily convey the whereabouts, and usage time of the owner. Data of this magnitude makes the user completely vulnerable to cyber-attacks, putting their lives at risk. Viewing smart home cyber security as a primary goal while designing smart home technology is the way to combat this challenge.
Smart Homes Market Key Players Perspective:
Key players in the smart homes market are Siemens AG, Honeywell International, Johnson Controls International, Google, United Technologies Corporation, Amazon Inc., Schneider Electric SE, Robert Bosch GmbH, and ABB.
Honeywell International has come up with a seamless system of smart homes that combines facial recognition, and Amazon Alexa. Nearly everything can be controlled with a user’s voice, and the smart homes have an in-built security systems to keep unwanted visitors away.
Smart Homes Market Trends:
Smart Homes Are Eco-Friendly
Smart homes, if used correctly are a boon to environment sustainability. Several companies are investing time and resources to build more eco-friendly smart homes as they are currently disrupting the market.
One of the areas where people waste the most amount of energy is heating, and cooling inside their homes. Smart homes optimize the inside temperature according to the weather outside, thus massively cutting down on high expenditure of energy.
Eco-friendly smart homes reduce carbon footprint caused by electricity by optimizing appliances according to our needs, and presence in the house. Users don’t ever have to worry about leaving any appliance on while they are on vacation as the smart home will take care of it.
One of the best things about these homes is that they water the garden according to the weather outside. This way, users are able to conserve water, and save costs.
Smart Homes Market Research Scope
Smart home market can be segmented on the basis of deployment, technology, products, and service. By products, the market can be divided into thermostats, humidifiers, air cleaners, wireless doorbells and cameras, light timers, alarm system, Yale locks, smoke alarms, pop smart buttons, smart sensors, smart speakers, robot vacuum, and others. Based on service, the market can be bifurcated into managed service, and professional service. Deployment segment divides the market into on-premises, and cloud. Technology, on the other hand bifurcates the market into Synco, Synco IC, KNX technology, Smart hub ADT, Bluetooth, Zigbee, Uber Cloud, Modbus, EnOcean, IBM Watson, and others.
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the smart homes market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of cheese in the smart homes market, and their specific applications in different areas.
Smart Homes Market Report: Industry Coverage
The smart homes market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
North America: The U.S., Canada, Mexico
South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Smart Homes Market Report
Is the market demand for the Smart Homes growing? How long will it continue to grow and at what rate?
Which type of home security system presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for the Smart Homes market?
A Few Focus Points Of This Research Are Given Below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future global the Smart Homes market during the forecast 2018–2023
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures