Global Smart Homes Market - Segmented by Product Type (Security & Surveillance Systems, Lighting Systems, HVAC&R Controls) and Region - Growth, Trends and Forecasts (2018 - 2023)
In 2017, the global smart Home market was valued at USD 39.68 billion and is expected to reach a value of USD 159.68 billion by 2023, registering a CAGR of 25.30% during 2018-2023. The threat of climate change, fluctuating energy prices and energy security and supply concerns have necessitated new ways of producing, delivering and consuming energy. In this regard, smart homes have gained increased attention in both policies and government regulations across the globe.
Europe To Witness the Fastest Growth for Smart Homes
Evolving energy policies such as Energiewende and changing consumer preferences have led to a fundamental shift in grid operations to distributed energy resources (DER), with the target to reduce primary energy consumption by 20% by 2020, is driving the deployment of smart grids and smart home infrastructure in Germany. The UK government mandates energy suppliers to install smart meters in 26 million homes with the aim that every household in England, Wales and Scotland will have a smart meter by 2020.The accelerating smart meter roll-out, growing awareness of the energy crisis, coupled with the European directive to reduce 80% of carbon emission by 2050, the UK smart home market is expected to see a significant growth over the forecast period. Italy, Russia, France and Germany are expected to lead the market for HVAC systems, owing to increasing awareness, high per-capita income and purchasing power of consumers. However, the lack of understanding of user’s needs, device compatibility issues as well as consumer concerns for privacy and security are expected to hamper the adoption of smart home devices and solutions.
Energy Management Systems to Witness an Increased Adoption
As the population across the globe increases, so will the energy demand and per-head consumption. There are costs associated with maintenance and upgradation of aging infrastructure, due to high demand. This is driving resilience in energy management systems. Smart energy management technologies help utilities and distributors anticipate and manage loads better, reduce the requirement for costly infrastructure development, and improve service quality and customer satisfaction. Energy management in smart homes mainly comprises of smart meters, smart appliances, energy management system for appliances, and home power generation, all functioning on smart grids. Smart meters are unleashing the potential of power demand management across the world by measuring and smartly managing resources. An instance of this trend is the ongoing process of voluntary replacement of standard meters with smart meters in high volumes in the Europe in the recent years.
Growing Trend Toward Sustainability
Smart homes are a major step on the evolutionary ladder for residential spaces, and their primary aim is to make living more comfortable, convenient, secure, entertaining and sustainable. Powered by gadgets and computing technologies, smart homes were the prerogative of the very rich in the past - but no more. With technological advances in voice control and artificial intelligence, the intelligent assistant is now a viable control center for the connected home. Tech giants and startup attackers have developed solutions delivered through both existing devices and new, stand-alone products. The supply of mobile entities, the improvement of wireless Internet, the emergence of cloud services, the sophistication of low-energy high-performance energy technologies, and other forms of convergence technology-based Internet of Things (IoT) have opened a new era for smart home technology. IoT-oriented smart home aims to collect human-machine interaction, then analyze, predict, and utilize information in solving life problems. Based on this, smart home is shifting to smart space, a paradigm that solves potential personal and societal problems and further provides new value to the world. There are various ongoing research developments on the subject of smart space, and new business models and service platforms are emerging.
Key Developments in the Market
- Jan 2018 - GRDF Company, launched the world’s largest roll-out of smart gas meters, powered by Oracle technology. GRDF, which serves 90% of the French gas market, had selected Oracle Utilities Meter Data Management to help it deliver smart metering services to 11 million customers as part of its gas smart meters programme. GRDF began the full-scale replacement of its 11 million mechanical meters with new smart devices, with the aim of replacing all current gas meters within 5 years. This large-scale industrial program will benefit customers and cities by boosting their energy efficiency.
- Jan 2018 - Bell, Canada’s largest communications company announced the availability of its new Whole Home Wi-Fi service. The company’s partnership with Plume, the pioneer of Adaptive WiFiTM, is aimed at making Bell Canada’s first Internet Service Provider to offer an adaptive, whole home Wi-Fi package to customers as a monthly subscription.
- Jan 2018 - Mitsubishi announced the development of an autonomous platform that enables networked smart appliances to use their sensors and functionalities to cooperate in new home services without the need for cloud computing or internet connection. The platform aimed to facilitate a wide variety of cooperative smart appliances and related services for increasing comfortable and convenient homes.
Partnerships and Collaborations in Smart Homes Market
Companies are entering partnerships and various collaborations with other companies and governments, to provide new and innovative solutions, as the demand for home automation products is rapidly increasing.
- For instance, in 2017, LG partnered with Google, to create the next-generation smartwatch.
- Legrand entered 20 partnerships with companies, such as Apple, Amazon, Marriott, Renault, and Somfy.
- In 2016, ABB partnered with Fluor, Aibel, Philips, Hitachi, and Microsoft, to develop the next-generation solutions and technologies.
- Companies are spending significant amounts either in mergers and acquisitions or in research and development, to stay ahead of their competitors.
- Several small players with unique and innovative product portfolios are being acquired by medium-sized companies, which in turn are being acquired by largescale companies, as in the case of Smarthome Inc.
Major Players -Abb Ltd., Emerson Electric Corporation, Honeywell International Inc., Schneider Electric Se, Siemens Ag, Lg Electronics Inc., Cisco Systems Inc., Google Inc., Microsoft Corporation, General Electric Company, Ibm Corporation, Legrand Sa, Lutron Electronics Co. Inc., United Technologies Corporation, Smart Home Inc. And Control4 Corporation among others.
Reasons to Purchase the Report
- How does the growing trend toward sustainability act as a driver to the global market scenario?
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
- Which solutions and end-user verticals are expected to dominate the market?
- Which regions are expected to witness the fastest growth during the forecast period?
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