Smart Home Devices Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[210+ Pages Report] According to Facts & Factors, the global smart home devices market size was valued at USD 140.52 billion in 2023 and is predicted to surpass USD 335.15 billion by the end of 2032. The smart home devices industry is expected to grow by a CAGR of 10.14% between 2024 and 2032.

Market Overview

Smart home devices refer to internet-connected devices that help automate, control, and monitor the home environment. These devices can easily be controlled remotely with the help of smartphones and tablets, thereby improving home comfort.

There are different types of smart home devices available in the market, like home security systems, smart thermostats, smart lighting, smart plugs & outlets, smart applicants, smart entertainment systems, smart speakers, voice assistants, and many others. There are several advantages of smart home devices, like remote access and control, to improve security, efficiency, integration, and connectivity capabilities.

Key Insights

• As per the analysis shared by our research analyst, the global smart home devices market size is estimated to grow annually at a CAGR of around 10.14% over the forecast period (2024-2032).
• In terms of revenue, the global smart home devices market size was valued at around USD 140.52 billion in 2023 and is projected to reach USD 335.15 billion by 2032.
• Rise in demand for convenience is driving the growth of the global smart home devices market.
• Based on installation type, the new construction segment is growing at a high rate and is projected to dominate the global market.
• Based on product types, the entertainment & other controls segment is anticipated to grow with the highest CAGR in the global market.
• Based on protocols, the wireless communication technology segment is projected to swipe the largest market share.
• Based on sales channels, the indirect channel segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Rise in demand for convenience is driving the growth of the global market.

People are more attracted to home automation because of its convenience and seamless control over their home environment. Additionally, companies are coming up with more advanced and unique features in smart home devices like voice control, remote monitoring, automated scheduling, and many others, which further simplify the daily tasks of users.

Additionally, there is growing awareness among people regarding IoT technology, which is further expected to widen the scope of the global smart home devices market. The growing awareness among people regarding energy efficiency and sustainability is further expected to support the growth of the industry. Smart home devices are energy-efficient solutions that function by adjusting energy use. It is likely to help end-users lower carbon footprints and energy bills.

Additionally, the increasing availability and affordability of these smart devices are further expected to grow market sales and revenue in the coming years. Many companies like Google and Amazon are coming up with entry-level smart tech products to make these devices available to a broad consumer base. The fast proliferation of smartphones and high-speed internet is further making people inclined toward smart home devices.

For instance, ABB India came up with an ABB-free home in 2024 to improve security, comfort, and efficiency. Users can easily manage different elements like third-party devices, white goods, EV chargers, and many other aspects with this unified interface.

Restraints

• High cost is expected to hinder the growth of the global market.

The high initial cost of smartphone devices is a big barrier in the smart home devices industry. High costs limit budget-conscious consumers and, therefore, slow down the adoption rate of these devices.

However, interoperability incompatibility issues are further expected to create barriers in the industry. Smart home devices work on collected data about individuals and their environments, which is further raising concerns among consumers regarding potential data breaches or data leaks.

Opportunities

• Increasing focus on home security and surveillance is likely to foster growth opportunities in the global market.

Growing concerns over home security are one of the major factors likely to open many new growth opportunities in the global smart home devices market. Smart home devices like doorbells, cameras, and motion detectors are in high demand in the market.

Also, technological advancements like the integration of AI and voice control assistants like Apple Siri are expected to revolutionize the market further. Voice control commands make it easier for users to interact with their devices.

However, the ongoing investments in smart city projects like smart home integration are further expected to widen the scope of the industry. These projects are likely to help residents adopt smart technologies like smart home devices on a larger scale.

Furthermore, increasing urbanization and the tech-savvy population are expected to propel the adoption of smart home devices in the market.

For instance, Haier came up with new products in the Philippines in 2024. The various products range from AI-based Fresh Refrigerator to Color AI washing Machines. These products can easily integrate advanced technology with everyday convenience.

Challenges

• Rising concerns over the lifespan of these devices are a big challenge in the global market.

Smart home technology is changing and evolving at a fast pace, thereby making many recent devices obsolete within a few years. However, this is a big challenge in the smart home devices industry as consumers are resisting investing in high-end smart home devices.

Also, less awareness among people regarding smart home technology in many developed and underdeveloped regions is further expected to negatively impact the growth of the industry.

Report Scope

Segmentation Analysis

The global smart home devices market can be segmented into installation type, product types, protocols, sales channels, and regions.

On the basis of installation types, the market can be segmented into new construction and retrofit. The new construction segment accounts for the largest share of the smart home devices industry during the forecast period. New construction projects include smart home devices like security systems, smart lighting, thermostats, and app appliances, which are likely to fuel the growth of the segment.

However, government initiatives promoting sustainable and energy-efficient construction practices are also the major reasons likely to positively influence the growth of the segment. Installing smart home systems during construction is more cost-effective, and therefore, new installations are more common in the market.

On the basis of product types, the market can be segmented into smart speakers, smart kitchens, home appliances, smart furniture, security & access controls, lighting controls, entertainment & other controls, HVAC controls, and many others. Entertainment & other control segments are likely to dominate the global smart home devices market. There is a significant growth in the demand for high-quality home entertainment systems, which is one of the major reasons for the high growth rate of the segment.

Advanced entertainment systems are coming up with more sophisticated features like remote control, smooth integration with virtual assistants, and many others further appeal to users. These devices help improve the user experience by personalizing entertainment with the help of data analytics and AI.

On the basis of protocols, the market can be segmented into wireless and wired communication technologies. Wireless communication technology is the fastest-growing segment in the smart home devices industry. Wireless communication technology offers ease of installation compared to traditional big wired infrastructure.

Also, this setup is quite convenient for both new construction and retrofitting old homes. Advancements in technology like IoT and connectivity protocols are further likely to revolutionize the market. The emergence of Zigbee Z waves Wi-Fi and Bluetooth 6.0 are likely to help in the quick installation of wireless technology-based smart devices with minimum interference.

Additionally, the growing popularity of smart assistants like Google Assistant and Alexa is further expected to strengthen the demand for wireless technology in the market.

Also, wireless systems are more scalable and flexible in nature as they can be easily customized for individuals with smart home set-ups. These have low installation and maintenance costs as compared to biotechnology, which further makes them more appealing to users.

On the basis of sales channels, the market can be segmented into indirect and direct channels. The indirect channel segment is anticipated to witness huge developments with high CAGR during the forecast period. The fast expansion of e-commerce and online retail is one of the major reasons for the high growth rate of the segment.

E-commerce platforms are gaining the trust of consumers, and therefore, people prefer these online platforms for buying expensive smart home devices. Consumers get to choose from a broad selection with competitive pricing and ease of delivery, which further shifts their purchasing habits towards indirect channels.

Also, strategic partnerships with retailers like Walmart and Amazon Best Buy are further expected to revolutionize the market. The ongoing partnerships help to improve the accessibility of these devices, thereby improving the revenue growth of the market.

Regional Analysis

• North America to dominate the global market.

North America is likely to account for the largest share of the global smart home devices market during the forecast period. One of the major factors driving the growth of the regional market is the presence of major players in the industry, such as Apple, Google, Amazon, and Samsung. These companies are constantly introducing new products to expand their market presence.

Also, the strong IoT and IT tech infrastructure in the region, because of the high smartphone and internet usage, is expected to positively influence the growth of the region's market. Furthermore, the rising popularity of smart speakers and voice assistants among North American people is also anticipated to support the growth trajectory of the regional market.

Asia Pacific is another major region in the smart home devices industry that is likely to experience a high growth rate in the coming years. China is the leading market in APAC because of the presence of companies like Hawaii, Xiaomi, and many others. South Korea and Japan are also the leading countries in APAC because of their leadership in smart home technology. India is also an emerging market that is likely to contribute significantly to the growth of the regional market. India is home to many affordable smart devices.

However, the growing middle-class population in Asia Pacific is another important factor supporting the growth of the regional market. For instance, Schneider Electric came up with Schneider Home in 2023. The company is a leader in automation digital transformation that prioritizes energy independence, comfort, and savings.

Competitive Analysis

The key players in the global smart home devices market include

• Honeywell International Inc.
• Philips Lighting BV
• ABB Ltd.
• Sony Group Corp.
• Assa Abloy AB
• Robert Bosch GmbH
• Legrand S.A.
• Schneider Electric SE
• Google Nest
• Amazon.com Inc.

For instance, Huawei Digital Power unveiled its Smart Home Energy Solutions in 2024  in the Philippines to contribute towards a sustainable and energy-efficient future. This solution offers unique features like a smart Strong Energy Storage System (ESS), Smart PV Module, and SmartGuard. It is ideal for people interested in functionality and aesthetics in their homes and workspaces.

The global smart home devices market is segmented as follows:

By Installation Type Segment Analysis

• New Construction
• Retrofit

By Product Types Segment Analysis

• Smart Speakers
• Smart Kitchens
• Home Appliances
• Smart Furniture
• Security & Access Controls
• Lighting Controls
• Entertainment & Other Controls
• HVAC Controls
• Others

By Protocols Segment Analysis

• Wireless Communication Technologies
• Wired Communication Technologies

By Sales Channels Segment Analysis

• Indirect Channels
• Direct Channels

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America