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Future of Smart and Connected Homes, Forecast to 2025

Future of Smart and Connected Homes, Forecast to 2025

The smart and connected homes market is an evolving and dynamic sector that is poised for solid growth in the next 7 years. The market is mainly driven by demand for enhanced safety and personal comfort, increased energy and cost savings, growing acceptance of new products, improved adoption of high-speed Internet connectivity in developing countries, new business models, and enhanced competition from different market participants.

The total smart and connected homes market is estimated to reach $262.63 billion growing at a compound annual growth rate (CAGR) of 7.5% till 2025. The CAGR would be in double digits if smart TVs were not considered in the total market revenue; however, we have chosen to include it in the scope of this research study, as it is an integral part of the smart home ecosystem.

The home entertainment segment contributed 82.7% of the total market revenue and will continue to remain the highest contributor in the forecast period as well. Home energy management systems (HEMS) segment is expected to witness accelerated growth with a CAGR of 21.0% till 2025.

Research Scope
The scope of the study includes five key segments: home energy management, home automation, home safety and security, home entertainment, and health and wellness. Frost & Sullivan approaches each smart home segment as a separate market and has identified unique product-level architecture for easy identification for products and has provided an analysis of the same.

Home Energy Management Systems (HEMS):
This system is a technology platform that monitors, manages, and controls home functions, such as HVAC, lighting, solar PV, and other appliances in a residential building. The scope of the study covers both hardware and software. Hardware includes ‘hub’ devices, smart plugs, smart thermostats, smart clamps, and in-home displays (IHDs), which are interconnected in a wireless mesh network called the Home Area Network (HAN).

Home Automation and Control:
A home automation system is a centralized system that controls and automates at least two home functions from remote locations, thereby providing an assisted and connected living environment to end-users.

The study includes both simple and advanced automation products. Simple home automation products include Sensors and controllers such as occupancy sensors, light sensors, daylight dimming sensors, CO2 sensor, air quality sensor, humidity sensor, lighting and HVAC controllers, home gateways, smart AC vents, smart kitchen appliances and management software and mobile applications.

Advanced automation products include smart windows, automated window blinds, shutters, garage doors, roof windows, and shutter controllers.

Home Safety and Security:
Home safety and security products include smart IP cameras (such as Nest Cam and Ring device) alarm systems, smart locks, motion sensors, flood sensors, door/window sensors, and smoke sensors.

Home Entertainment:
A home entertainment system is a multi-room system that controls and automates home entertainment devices and provides high-quality audio/video experience for end-users. Home entertainment is a combination of both hardware and software products. Home entertainment products include smart TVs, smart speakers, connected audio systems, and digital media streamers.

Health and Wellness:
Health and wellness is also known as technology-enabled care (TEC) that involves mobile health, digital health, and telehealth. Health and wellness is a combination of hardware and software as shown in the chart.

Health and wellness products include wearable devices that track vitals, sleep, and physical activities; and remote health monitors. Software and services include health and fitness management applications, telehealth and mHealth, health education, health engagement, and virtual care.

The geographic scope of the study includes North America, Europe, and the Commonwealth of Independent States (CIS), Asia-Pacific, the Middle East and Africa, and Latin America.

Frost & Sullivan has estimated the penetration of smart homes in different countries across the globe and analyzed the same.


  • Executive Summary
    • Key Findings
    • Key Findings-Market Opportunities
    • Key Findings-Market Trends in Developed Economies
    • Key Findings-Market Trends in Emerging Economies
    • Key Market Developments
    • CEO's 360 Degree Perspective
    • Associated Research and Multimedia on Smart and Connected Homes
  • Market Overview
    • Market Definition
    • Market Definition-Home Energy Management
    • Market Definition-Home Automation and Safety and Security
    • Market Definition-Home Entertainment
    • Market Definition-Health and Wellness
    • Homes Evolving Beyond Smart Homes
    • Smart Home Layout
    • Smart Home Technology Stack
    • Research Methodology
    • Market Segmentation by Smart Home Segments
    • Key Questions this Study will Answer
  • Drivers and Restraints-Total Smart and Connected Homes Market
    • Key Market Drivers
    • Drivers Explained
    • Key Market Restraints
    • Restraints Explained
  • Forecasts and Trends-Total Smart and Connected Homes Market
    • Revenue Forecast
      • Table Total Smart and Connected Homes Market: Revenue Forecast, Global, 2018-2025
    • Connected Devices Volume Forecast
      • Table Total Smart and Connected Homes Market: Connected Devices Volume Forecast, Global, 20182025
    • Percent Revenue Forecast by Segment
    • Revenue Forecast Discussion
    • Revenue Forecast by Construction Type
      • Table Total Smart and Connected Homes Market: Revenue Forecast by Construction Type, Global, 2018- 2025
    • Revenue Forecast by Construction Type Discussion
  • Smart and Connected Homes Penetration
    • Global Smart and Connected Homes Penetration
      • Table Total Smart and Connected Homes Market: Top 10 Countries by Connected Home Penetration, Global, 2018
      • Table Total Smart and Connected Homes Market: Bottom 10 Countries by Connected Home Penetration, Global, 2018
      • Table Total Smart and Connected Homes Market: Connected Home Penetration in Selected CountriesAlphabetical Order, Global, 2018
    • Smart Home Device Ownership in Developed Countries by 2025
      • Table Total Smart And Connected Homes Market: Device Ownership At Homes, 2018 And 2025
  • Home Energy Management Segment Analysis
    • Revenue Forecast
      • Table Home Energy Management Segment: Revenue Forecast, Global, 2018-2025
    • Technology Trends
  • Home Automation and Control Segment Analysis
    • Revenue Forecast
      • Table Home Automation and Control Segment: Revenue Forecast, Global, 2018-2025
    • Technology Trends
  • Home Safety and Security Segment Analysis
    • Revenue Forecast
      • Table Home Safety and Security Segment: Revenue Forecast, Global, 2018-2025
    • Technology Trends
  • Home Entertainment Segment Analysis
    • Revenue Forecast
      • Table Home Entertainment Segment: Revenue Forecast, Global, 2018-2025
    • Technology Trends
  • Health and Wellness Segment Analysis
    • Revenue Forecast
      • Table Health and Wellness Segment: Revenue Forecast, Global, 2018-2025
    • Technology Trends
  • Regional Analysis with Key Country Findings
    • Percent Revenue Forecast by Region
      • Table Total Smart and Connected Homes Market: Percent Revenue Forecast by Region, Global, 2018-2025
    • Revenue Forecast by Region
      • Table Total Smart and Connected Homes Market: Revenue Forecast by Region, Global, 2018-2025
    • Revenue Forecast by Region Discussion
    • Percent Revenue Breakdown by Key Countries
    • Key Findings-United States
    • Key Findings-United Kingdom
    • Key Findings-Germany
    • Key Findings-France
    • Key Findings-Nordics
    • Key Findings-Benelux
    • Key Findings-India
    • Key Findings-UAE
    • Key Findings-China
    • Key Findings-Brazil
  • Customer Perspectives on Smart and Connected Homes
    • Ranking of Success Factors for Adoption of Smart Home Devices
    • Perceived Benefits of Smart Home Device Purchases Among Non-users
    • Priority of Home Owners to Buy Smart Home Devices in the Next 5 Years
    • Smart Home Appeal by Countries
    • Smart Home Appeal by Segments
    • Channel of Purchase of Smart Home Devices
    • Willingness to Pay for Smart Home Devices
    • Ranking of Barriers to Adoption of Smart Home Devices
  • Growth Opportunities and Companies to Action
    • Growth Opportunity 1-IoT-enabled Products
    • Growth Opportunity 2-Data Analytics and Cloud Computing
    • Growth Opportunity 3-Products with Functionality Integration
    • Growth Opportunity 4-Strategic Partnerships
    • Strategic Imperatives for Success and Growth
  • Conclusion
    • 3 Big Predictions

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