Share on

Connected Home Market Segmentation by Product (Lighting Control, Security and Access Control, HVAC Control, Entertainment Control & Other Controls, Smart Speaker, Home Healthcare, Smart Kitchen, Home Appliances and Smart Furniture); By Software & Solutions (Behavioural and Proactive) - Demand Analysis & Opportunity Outlook 2027

Published: March, 2023
ID: 12348
Pages: 175
Formats: report pdf report excel report power bi report ppt

Connected Home Market Size, Growth, Trends & Forecast (2022 - 2027)

Over the projected period, the connected home market is expected to increase at a CAGR of 10.4 per cent, from USD 84.5 billion in 2021 to USD 138.9 billion in 2026. 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 connected home industry's growth.

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 centre 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.

Recent Developments in Connected Home Market

In October 2021, Google announced new tools and capabilities for developers interested in creating devices that are compatible with Matter, an open smart home application standard that promises to create a new, universal language for the linked home. With the help of Google, Amazon, Apple, Samsung, and others, the protocol is planned to be published in 2022.

Siemens AG is finalising 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 per cent, according to Busch, noting a robust recovery following the disruption caused by Covid. In fiscal 2022, it forecasts growth to be approximately 5-7 per cent.

During the 2021 NECA Convention in Nashville in October 2021, Schneider Electric, a global leader in energy management and automation digital transformation, unveiled its new FlexSeT low voltage switchboard. FlexSeT is a ground-breaking service model for switchboard sourcing, installation, and maintenance that reduces project risk increases construction          efficiency and     shortens lead times.         

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.

Connected Home Market Drivers

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 prioritising the development of IoT platforms and related technology (Machine Learning, Artificial Intelligence, and so on) that can be used in smart home products.

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, utilise 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.

Connected Home Market Restraints

When it comes to customer perceptions of value, many people are hesitant to seek help with connected home device settings and integration. Part of this is due to apprehension about installing/operating connected home security systems, and part of it is due to security and privacy concerns, which have recently been exacerbated by high-profile connected home security breaches, such as the one caused by a company that allegedly misconfigured an Internet-facing database without a password.

Millennials and younger market groups, in contrast to these connected house market problems and concerns, are completely open to a more DIY approach. The 16-to-25-year-old age group is particularly adept at connected home setup and operation, but they often lack the financial resources to invest in anything more than the most basic linked home equipment, such as a smart speaker. Among the younger population, cost considerations outweigh other concerns, such as perceived privacy and security risks. Due to the difficulties in setting it up and perceived threats, the baby boomer generation has demonstrated little interest in or willingness to realise the potential benefit of a connected home app.

Connected Home Market Segmentation

Product: The market is segmented into Lighting Control, Security and Access Control, HVAC Control, Entertainment Control and Other Controls, Smart Speaker, Home Healthcare, Smart Kitchen, Home Appliances and Smart Furniture.

The Entertainment Control and Other Controls category 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 centralise 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.

Software & Solutions: The market is segmented into Behavioural and Proactive.

The Behavioural category 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 analysing energy-related data and relaying the information to them.

Connected Home Market 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.

Connected Home Market Leader

Google Nest, a subsidiary of Google LLC, is dominant in the global connected homes market with annual revenue of $4.4 billion.

Connected Home Market Key Players

  1. Amazon
  2. Apple Homekit
  3. Ecobee
  4. Bosch Smart Home Solutions
  5. Philips Hue
  6. Tuya Smart
  7. Belkin
  8. Wink
  9. Siemens AG
  10. Honeywell International Inc
  11. LG Electronics Co
  12. Sony
  13. Samsung Electronics
  14. Schneider Electric SE

Impact of COVID-19 for 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 per cent in the fiscal year 2021.

Please wait. . . . Your request is being processed

Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500

Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM

Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!

REACH OUT TO US

Call us on: +1 888 702 9696 (U.S Toll Free)

Write to us: [email protected]

Click for Request Sample