Smart Home Market Segmentation And Understanding Different Consumer Needs

Smart Home Industry Overview

The global smart home market size was valued at USD 79.16 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 27.07% from 2023 to 2030. Smart home products are available in the form of cameras, smart lights, streaming devices, dishwashers, and more. Growing trend of integrating Artificial Intelligence (AI) in smart home products for smart features is expected to increase product demand. Moreover, high penetration rate of smartphones and the internet globally is driving the demand for connected smart home products. Digital assistance integrated with AI is offering users a hands-free and more user-friendly deployment of smart devices, significantly impacting the buyers’ preferences.

Gather more insights about the market drivers, restrains and growth of the Smart Home Market

Growing use of virtual assistants, such as Siri, Google Assistant, and Alexa, enables users to use voice commands for task automation. The emerging features of these digital assistants, such as Bluetooth speakers and hands-free channel surfing, among others are driving the demand for smart home devices. For instance, in October 2022, Google updated its assistant to support voice-input message typing along with emoji support for convenience in messaging for users. Rapid adoption of modern technologies, such as Internet of Things (IoT), blockchain, smart voice recognition, and AI, is significantly impacting the market growth.

For instance, smart voice recognition technology enables smart home products with a mic to recognize users’ voices and give them personalized responses. Similarly, an increased adoption rate of IoT in developing and developed regions has also contributed to the growth of this market. The capability of technologies to allow connectivity between devices has helped in generating demand for smart home market. The COVID-19 pandemic shut down industries and affected the manufacturing of smart home devices. However, due to stringent lockdowns around the world, people were forced to stay at home.

As a result, people turned towards entertainment in the form of TV shows and movies, which caused a surge in demand for smart TVs and entertainment centres. In addition, there was a rise in the trend for smart homes as they offered automation in tasks following social distancing regulations. Although supply chain disruptions were present, the pandemic and its impacts also revealed significant shortcomings in the digital device and internet infrastructure sectors. As supplies decreased and production lagged, there were not enough semiconductors available to support smart products. This impacted the companies that manufacture smart home products.

Key Companies profiled:

• LG Electronics, Inc.

• Siemens AG

• Amazon.com, Inc.

• Google Nest (Google LLC)

• 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.

• Honeywell International, Inc.

Browse through Grand View Research's Category Next Generation Technologies Industry Research Reports.

• The global target drone market size was estimated at USD 5.18 billion in 2023 and is expected to expand at a CAGR of 9.3% from 2024 to 2030. The increasing military and defense expenditures worldwide is boosting the demand for target drones. Governments and defense organizations are investing heavily in advanced technologies to enhance their military capabilities.

• The global enterprise information archiving market size was estimated at USD 7.58 billion in 2023 and is anticipated to grow at a CAGR of 14.1% from 2024 to 2030. The enterprise information archiving (EIA) market is primarily driven by the increasing volume of digital data, stringent regulatory compliance requirements, and the need for improved data management and security.

Smart Home Market Segmentation

Grand View Research has segmented the global smart home market on the basis of products, protocols, application, and region:

Smart Home Products Outlook (Revenue, USD Million, 2018 - 2030)

• Security & Access Controls

o Security Cameras

o Video Door Phones

o Smart Locks

o Remote Monitoring Software & Services

o Others

• Lighting Control

o Smart Lights

o Relays & Switches

o Occupancy Sensors

o Dimmers

o Other Products

• Entertainment Devices

o Smart Displays/TV

o Streaming Devices

o Sound Bars & Speakers

• HVAC

o Smart Thermostats

o Sensors

o Smart Vents

o Others

• Smart Kitchen Appliances

o Refrigerators

o Dish Washers

o Cooktops

o Microwave/Ovens

• Home Appliances

o Smart Washing Machines

o Smart Water Heaters

o Smart Vacuum Cleaners

• Smart Furniture

• Home Healthcare

• Other Devices

Smart Home Protocols Outlook (Revenue, USD Million, 2018 - 2030)

• Wireless Protocols

o ZigBeeo Wi-Fi

o Bluetooth

o Z Wave

o Others

• Wired Protocols

• Hybrid

Smart Home Application Outlook (Revenue, USD Million, 2018 - 2030)

• New Construction

• Retrofit

Smart Home Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

o U.S.

o Canada

• Europeo U.K.

o Germany

o France

o Italy

o Spain

o Benelux

o Nordic Countries

o Russia

• Asia Pacific

o China

o India

o Japan

o South Korea

o Australia

o Indonesia

o Thailand

• Latin America

o Brazil

o Mexico

o Argentina

• Middle East & Africa

o Saudi Arabia

o UAE

o Egypt

o South Africa

o Nigeria

Order a free sample PDF of the Smart Home Market Intelligence Study, published by Grand View Research.

Recent Developments

• In January 2023, Schneider Electric acquired AVEVA plc to use AVEVA plc’s advanced software capabilities to introduce modern automation solutions for residential, commercial, and building complexes. The acquisition is expected to grow Schneider Electric’s home automation offering.

• In April 2022, ABB Ltd. launched a collaboration with Samsung Electronics Co., Ltd. to expand its home automation portfolio. The collaboration will make it easier for new customers to reduce costs and create a positive impact on the environment.

• In September 2022, Lutron Electronics Co., Inc. launched its Diva Smart Dimmer and Claro Smart Switch for smart lighting automation in homes which also has a wireless option.