According to a new report published by Allied Market Research (AMR), the smart home devices market is estimated to reach $707.2 billion (2032), marking 21.5 percent CAGR from 2023. In 2022, the market was valued at $101.6 billion.
Smart home devices are appliances that can be controlled remotely from any place with an internet connection through a mobile or other networked device. Since every device in a smart home is connected to the internet, the user is able regulate features such as lighting, temperature, security access and home entertainment. There has been a worldwide surge in the popularity of smart homes due to increased internet us, with the market gaining momentum in recent years due to rises in internet penetration, desire for opulent lifestyles in developing nations and instances of remote/hybrid work.
Moreover, the “new normal” created by the social distancing practice forced real estate corporations and the architect community to rethink residential real estate products by incorporating cutting-edge efficiency, creativity and design. The requirement for a whole new set of amenities has resurfaced as the renovation takes place. Thus, residential homes have undergone a paradigm shift as a result of COVID-19-related restrictions’ impact on customer need.
Plus, surge rising demand for convenience, rise in awareness of energy conservation and enhancements in communication technology are primarily driving the growth of the intelligent home devices market. However, high initial costs hampered market growth. Moreover, integration with new technology is expected to provide lucrative opportunity for intelligent home devices market growth during the forecast period.
Lighting control dominated the market in 2022 and is expected to maintain this in the upcoming years, owing to offering users the ability to adjust color temperature, brightness levels and personalized lighting scenes to suit various moods and activities. The smart kitchen segment is expected to witness the highest growth because it offers users support for controlling ovens, refrigerators and other devices through natural language commands.
Region-wise, the smart home devices market size was dominated by North America in 2022 and is expected to retain its position during the smart home devices market forecast period, with the increasing adoption of smart security systems providing real-time monitoring and alerts through connected devices. Asia-Pacific is expected to witness significant growth during the forecast period due to the fast-paced urban lifestyle in the region.
Lockdowns and other social distancing tactics have made people spend more time at home, which boosted demand for smart home appliances. The increased emphasis on health and safety is one of the noteworthy effects of COVID-19 on smart home technology. Due to its ability to provide remote monitoring and contactless access control, smart home appliances such as security cameras, video doorbells and locks have grown in popularity. By limiting physical touch with surfaces and enabling remote home monitoring, these technologies improve security and lower the chance of virus transmission. Furthermore, COVID-19 accelerated the process of integrating smart home appliances with wellness and healthcare software.
A notable technological development in this field is the incorporation of voice assistants such Google Assistant and Amazon Alexa into smart home appliances. With the help of these voice assistants, homeowners can manage lighting, temperature and security by simply speaking to them. The development of ML and AI in smart home devices is another trend. With the help of these technologies, devices can become personalized by learning from and responding to the preferences and actions of users. Moreover, the development of smart home appliances is greatly aided by the IoT movement. A seamless, integrated ecosystem is created by IoT, allowing devices to connect and communicate with one another. Users may manage several gadgets at once with this connectivity, making their house genuinely smart and integrated. In addition, the advent of smart home appliances implies a strong emphasis on energy saving. Energy-saving features such motion sensors that can detect occupancy and change lighting accordingly, are being included by manufacturers into their goods. This lowers energy usage and helps homeowners save money.
Click here to download AMR’s Smart Home Devices Market report.
