The global market for smart home gadgetry was worth $24.1bn in 2016, and is expected to grow by more than 14.5% a year to hit $53.45bn in 2022.
Homeowners’ reliance on the convenience of voice or app-control in everyday matters – from drawing the curtains and getting the lighting just so to checking CCTV, picking smart locks and controlling entertainment systems – is ballooning as the tech gets less techy, more affordable and more integrated, according to a pithily-titled new report by Zion Market Research – “Smart Home Market (Smart Kitchen, Security & Access Control, Lighting Control, Home Healthcare, HVAC Control and Others): Global Industry Perspective, Comprehensive Analysis and Forecast, 2016-2022”.
The major growth drivers for the smart home market includes growing awareness among consumers about energy consumption, an ageing population, rising disposable income in developing countries, and government initiatives. Rising demand for home healthcare is also playing a significant role in fueling the growth of the smart home market.
But prices are still relatively high, demand for most of the gadgetry is still relatively small, and long device replacement cycles are the biggest barriers preventing connected kitchens and the like from moving from the early-adopter stage to the mass-adoption stage. High installation costs, a lack of standardisation, and a lack of consumer awareness are also hindering market growth.
Researchers looked at the global market, segmenting it by product and by region.
Light controls – specifically those that adjust the intensity of artificial light according to the intensity of natural light thereby reducing power consumption – currently hold the largest share in the smart home market.
North America is currently “dominating” the global smart home market, principally due to strong demand for home healthcare and a growing population, followed by Europe, which is big on fitness products and wireless interconnectivity. In North America, government initiatives include remotely controlling gas, power meters and water to fall into the “smart grid” with ease.
An ageing population, energy and cost savings, security and convenience – along with reduced carbon emissions and government initiatives – are predicted to be the major factors driving the sector’s growth over the next five years, with the big tech trend being a move to cloud-based back-ends.
The Asia Pacific region is, unsurprisingly, projected to see some of the most significant growth in the near future, with a surge of teched-up residential property developments driving momentum.
Zion highlights the biggest smart home brand players in the market at the moment as: Legrand, Siemens AG, Johnson Controls Inc., Ingersoll-Rand plc, Schneider Electric SE, Acuity Brands, Inc., ABB Ltd., United Technologies Corporation, Samsung Electronics Co., Ltd., Nest Labs, Inc., Honeywell International Inc. and Crestron Electronics.
Zion’s 110-page Smart Home Market report is available to download here – but it’ll cost you $4,199.