Connected Home Market

Global Connected Home Market Size (2024 to 2029)

The global connected home market was valued at USD 102.99 bn in 2023. The global market is anticipated to grow at a CAGR of 10.4% from 2024 to 2029 and be worth USD 186.4 billion by 2029 from USD 113.7 billion in 2024.

A connected home is a sophisticated system that can be controlled remotely via smartphones, tablets, and laptops. In a linked home, many devices, such as a TV, receiver, DVD recorder, media player, gaming consoles, and others, can be connected to any media center via a local area network or wireless home network. Users can monitor and control household activities from afar using a web interface that allows them to access all gadgets even while they are not at home in these connected houses.

MARKET DRIVERS

The growing awareness of connected homes and the increasing tech-savvy population worldwide are driving the connected home market growth.

An increase in the number of internet users and smart device adoption, as well as a growing need for energy-saving and low-carbon emission-oriented solutions, are driving the market. In addition, factors such as the growing need for home monitoring in remote locations and increased disposable income in emerging countries have assisted the growth of the globally connected home market. The Internet of Things (IoT) platform is one of the most important global economic drivers for the smart home sector. IoT-based devices at home have energy-saving capabilities. Key firms are prioritizing the development of IoT platforms and related technology (Machine Learning, Artificial Intelligence, and so on) that can be used in smart home products.

Technological advancements in connected homes are boosting global market growth.

As a result of the integration of a variety of artificial intelligence (AI) technologies, the connected home industry has become much more resilient. The AI engines that power the most popular smart home VPAs are getting a conversational intelligence boost. Expectations about how humans communicate, consume content, utilize applications, and engage in commerce will change considerably as the interface between humans and computers evolves from an "operational" interface (Websites and traditional Apps) to an increasingly "conversational" interface.

An increase in the number of initiatives by government authorities to save the energy in any sort of way for better living in the future is adding fuel to the growth rate of the connected home market.

The need to save energy in an effective way is one of the major trends in this world. The connected home provides convenience and is feasible to live while ensuring saving energy in a more efficient way. According to the report by the US Energy Information Administration (EIA), around 21% of total power consumption is consumed by the residential area. Therefore, the connected home can be a vital option to save energy in a more precise way. In these modern days, adopting a connected home technology with various features lavishes the living experience with comfort and convenience and also reduces utility bills that are more likely to accelerate the growth rate of the connected home market.

Increasing focus on the adoption of energy-saving devices at home that can be operated with digital devices is leveraging the growth rate of the connected home market. Penetration of the latest technology in connecting the home with the latest technological features where the ability to control the home at your fingertips anticipates creating a wonderful environment for living in this modern era.

MARKET RESTRAINTS

High costs associated with the setup of connected homes are a big restraint to the global market growth.

The cost to install the complete setup of a connected home is a bit difficult, which is slowly degrading the market size to an extent. The techniques used to set up a connected home are associated with higher end based technology where the lack of complete knowledge in operating these systems is degrading the growth rate of the market. Though the demand to adopt all the latest technologies like AI and the Internet of Things is increasing, reluctance to adopt these changes in rural areas, especially in undeveloped countries, due to poor per capita income, is hindering the growth rate of the connected home market.

MARKET OPPORTUNITIES

The future will stand with advanced AI technologies where our homes will be operated through the internet connectivity. These technologies shall provide high security and comfort according to the habits of the user by saving energy. The trend towards the adoption of innovative models with the growing disposable income in urban areas is likely to showcase huge growth opportunities for the connected home market in the future. The rising significance of saving energy efficiency through all the advanced technological developments that meet the goals of the government authorities through connected homes will certainly surge the growth rate of the market.

MARKET CHALLENGES

The connected home is the latest trend featuring higher-end technologies in reshaping our lives. Now arises a big challenging factor for the market key players that is a privacy concern. As the connected home is basically connected with the internet technology and the data collection, the concern towards privacy protection is increasing worldwide. The rising number of cyber threats is elevating the need to take stringent action for the reduction of data threats. Therefore, the growth rate of the global connected home market. In addition, the lack of complete knowledge in utilizing the smart feature technology due to less knowledge slightly limits the market’s growth opportunities in the coming years.

Impact Of COVID-19 On the Global Connected Home Market

The COVID-19 outbreak has had both positive and negative consequences for the connected home market. Because the majority of the population works from home, the COVID-19 epidemic has increased the demand for smart home devices such as smart speakers and home healthcare. Because smart speaker manufacturing is not as advanced as that of other things such as smart furniture, smart kitchens, and HVAC controls, production capacity has not been significantly harmed, and sales income for this product is expected to increase in 2021. However, depending on how much the virus spreads, global revenues are likely to drop by 5-10 percent in the fiscal year 2021.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Connected Home Market Analysis By Product

The entertainment control and other controls segment is estimated to lead the market over the forecast period due to increased demand for audio, volume, and multimedia room controls among customers all over the world. Smart entertainment solutions that provide both relaxation and rejuvenation are becoming increasingly popular among consumers. The multi-room entertainment control system allows the user to centralize all linked devices while listening to music or viewing a movie. Furthermore, the constant advancement of wireless communication technologies is driving demand for home theatre systems.

Global Connected Home Market Analysis By Software and Solutions

The behavioral segment is expected to grow at a quicker CAGR during the forecast period, owing to increased demand in the smart home and energy management industries, as well as expanding communication between machine-to-machine solutions and the Internet of Things (IoT). The Behavioural type of solution delivers direct feedback to the end-user by analyzing energy-related data and relaying the information to them.

REGIONAL ANALYSIS

During the projection period, North America is estimated to have the highest share of the smart home market. This expansion is aided by the participation of large players. Increased usage of fundamental communication technologies such as Bluetooth, NFC, Wi-Fi, Zigbee, and the future 5G network is further helping the market's growth. Strategic mergers and acquisitions are being pursued by key corporations in this region to develop their business divisions globally.

The APAC market is predicted to grow at the fastest rate throughout the projection period. This region's growth is expected to be fueled by the growing demand for automation solutions in the residential sector. The leading firms in the region are concentrating their efforts on collaborating with other well-known companies to develop and deploy breakthrough connected home solutions. Furthermore, over the forecast period, developing countries such as China and India are expected to grow at an amazing CAGR. Increased government and business sector investments in smart city projects are to credit for this rise.

Market expansion in Europe is being driven by the spread of small businesses and increased investment by major corporations in countries like Germany, the United Kingdom, France, and others. This rise is being fueled by the rising demand for smart security and monitoring systems in this region. These factors will aid in the market's development, hence supporting the expansion and size of the worldwide connected home market.

The MEA and Latin American markets are likely to increase at a steady rate. Governments and local players are likely to increase their initiatives and investments, resulting in continued growth. Shortly, market growth in this region is expected to be aided by the rising construction of luxury villas and structures, as well as the rising demand for smart security solutions. Several government efforts, such as Smart Dubai and Smart UAE, are assisting in the growth of the connected housing market in these regions. In addition, the major firms in these regions want to develop and deploy smart home products throughout the next years.

KEY PLAYERS IN THE GLOBAL CONNECTED HOME MARKET

Amazon, Apple Homekit, Ecobee, Bosch Smart Home Solutions, Philips Hue, Tuya Smart, Belkin, Wink, Siemens AG, Honeywell International Inc., LG Electronics Co, Sony, Samsung Electronics, and Schneider Electric SE are some of the leading companies in the global connected home market. Google Nest, a subsidiary of Google LLC, is dominant in the global connected homes market, with an annual revenue of $4.4 billion.

RECENT HAPPENINGS IN THE MARKET

• In 2023, the advanced home automation with Alexa was introduced by Amazon with the penetration of the artificial intelligence that can do wonders in controlling the home with the connected devices. The new feature accelerates the control devices with echo hubs and map view that eventually to leverage the living experience to the extent.
• In 2023, Ecobee is ready to set the trend in the connected home by launching the Ecobee Smart Doorbell Camera Review. This company is stepping towards the expansion fot he company’s product portfolio by launching ecosystem products in favor to the user with the latest technological developments. Ecobee is planning to deliver advanced wireless technological thermostats that operates with the sensors connected with the internet technology. 
• Siemens AG is finalizing its five-year strategic investment plan for India, according to Roland Busch, President, and Chief Executive Officer, because its investments in the nation are expected to be "more ambitious" than in the past. Siemens' growth objective for FY21, which ends in September, has been raised to 11-12 percent, according to Busch, noting a robust recovery following the disruption caused by Covid. In fiscal 2022, it forecasts growth to be approximately 5-7 percent.
• Johnson Controls is expanding its physical security portfolio to include body-worn cameras and autonomous robots by integrating RaySecur's package screening technology. The Body-Worn Camera provides personal safety as well as new avenues for accountability, regulatory compliance, and evidence management. For applications that require real-time visibility, the Body-Worn Camera, which is integrated into video management solutions, provides live video streams over WiFi or cellular networks.

DETAILED SEGMENTATION OF THE GLOBAL CONNECTED HOME MARKET INCLUDED IN THIS REPORT

This research report on the global connected home market has been segmented and sub-segmented based on the product, software and solutions and region.

By Product

• Lighting Control
• Security and Access Control
• HVAC Control
• Entertainment Control & Other Controls
• Smart Speaker
• Home Healthcare
• Smart Kitchen
• Home Appliances
• Smart Furniture

By Software & Solutions

• Behavioural
• Proactive

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa