The Global Smart Home as a service Market, by Service (Managed and Integrated), by Solution (Security and Access, Lighting and Window, Audio-Visual and Entertainment, Energy Management and Climate and Integrated) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 15,225.8 Million by 2027, exhibiting a CAGR of 18.1 % during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Smart home refers to modern homes that have appliances, lighting fixtures, and electronic devices controlled remotely by the owner via a smartphone app. Smart home devices can work in conjunction with other devices in the home communicate information to other smart devices. Smart home devices include dryers, washing machines, refrigerators, toaster ovens, air conditioning units, and lighting devices. Moreover, smart home-enabled electronic devices include audio and video entertainment systems, computers, laptops, and other electronic devices. Smart homes are usually preferred as it helps the owner to control costs and be more energy-efficient while providing ample convenience to occupants and potential time savings. The global smart home as a service market is still in the nascent stage though it exhibits high growth potential.
The global Smart Home as a Service Market was accounted for US$ 3,952.9 Mn in terms of value in 2019 and is expected to grow at CAGR of 18.1% for the period 2019-2027.
Availability of an enhanced security system is expected to boost growth of the global smart home as a service market over the forecast period
Technological advancements have led to emergence of additional features such as live video surveillance, intrusion alerts, and instant updates, which was not possible with conventional systems. These features enhance personal and family security, which is the major market driver. According to Icontrol Network’s report published in 2015, 90% of the consumers agreed that home security is the primary reason for the adoption of the smart home. The adoption of smart homes can significantly reduce the number of domestic burglaries, break-ins, and robberies while keeping unwanted intruders out, thus making homes much safer. Hence, enhance security offered by smart homes is expected to propel the global smart home as a service market growth over the forecast period.
Suitable government regulations to endorse green buildings is expected to provide major growth opportunities
Governments of various countries are focused on green building concepts. Green building refers to the structure and application of processes that are resource-efficient throughout the building’s lifecycle. A smart home uses connected devices where a homeowner can control all appliances remotely through a single platform, which in turn, saves energy. Rising support from governments for green buildings is expected to increase the adoption of smart homes and provide major growth opportunities for market players over the forecast period.
Lack of awareness regarding the benefits of smart homes is expected to hamper the global smart homes as a service market growth over the forecast period
Smart homes and smart appliances are being adopted in countries from developed regions such as North America and Western Europe. However, the rate of adoption of smart homes is very low in emerging economies such as India China. A vast population from these countries is unaware of the benefits of smart homes and connected services, thereby hindering the adoption of the same. Moreover, some consumers are unwilling to adopt smart homes due to the perception of unreliability regarding smart homes. Thus, these factors are expected to hinder the global smart homes as a service market growth over the forecast period.
North America smart home as a service market is expected to witness lucrative growth during the forecast period. This is owing to the high adoption of smart homes in the region, especially the U.S. Consumers in the country are focused on adding products to their homes including video doorbells, smart locks, connected cameras, and smart speakers. Moreover, security-centered smart homes have witnessed significant demand in the recent past, as families are prioritizing safety first while searching for new homes. Moreover, consumers are increasingly adopting smart lighting, energy management solutions, and more, in order to simplify their lives. This trend is expected to continue during the forecast period.
Europe is expected to witness significant growth in the global smart homes as a market during the forecast period. This is owing to growing awareness regarding benefits of smart homes and the latest technologies. The U.K., France, and Germany are major contributors to the region with high demand for smart and connected appliances. This trend is expected to continue in the near future.
Key players operating in the global smart home as a service market are Ingersoll-Rand plc (Nexia), Vivint, Inc., Protection One Alarm Monitoring, Inc., The ADT Corporation, Telus Communications, Frontpoint Security Solutions, AT&T Inc., Johnson Controls, Inc., Comcast Corporation, Charter Communications (TWC), and CenturyLink, Inc.