Europe Smart Home Market Outlook, 2028

The market's primary drivers include the expansion of internet access in the European Union, the growing demand for low-carbon and energy-efficient solutions, the growing number of manufacturers expanding their product offerings in the smart home space, the continuous proliferation of smartphones, the growing significance of home monitoring, and the growing safety, security, and convenience provided by the European smart home industry. Smart house owners can lead more comfortable lives due to the ease that smart home goods and services offer. Environmental control is the most fundamental and well-known element of a smart home. Environmental control includes the ability to remotely operate or programme home appliances, including kitchen appliances, air conditioners, lighting fixtures, thermostats, and other items. It simplifies home environment management, greatly reducing household chores and enhancing occupant comfort. Services for smart home safety can assist homeowners in managing their home's security and avert accidents. To detect potential intruders or to alert homeowners to open doors and windows, security agencies, for instance, keep an eye on activity inside the house. The demand for intelligent security systems is rising due to rising rates of crime, urbanisation, and globalisation. Adoption of security devices is significantly influenced by the occurrence of burglaries. Examples of smart home security equipment that are digitally connected and controlled for burglary prevention and other security concerns include security cameras, door locks, motion sensors, and smoke sensors. Smart home gadgets, as opposed to conventional security systems, can be remotely operated using smartphone applications, providing owners peace of mind when they are away from home. Once they spot a potential threat, they'll be notified right away and take action to minimise the harm. Smart homes are one of the ten primary focus areas of the EU's strategic energy technology plan. The commission wants to promote creative ideas that leverage smart grid services to make systems more interactive and intelligent, thereby helping consumers and governments reduce their energy consumption. Achieving a balance between sustainable environmental practises and homebuilding is a crucial aspect of planning any green building. Governments all over the world have been promoting the idea of green buildings through a variety of initiatives since it lowers energy consumption and the growth of environmental trash. Additionally, regional energy efficiency projects have been spearheaded by European Union governments. The European Commission has set a goal to make Europe carbon neutral by 2050 as part of the EU (European Union) Green Deal. The EU is concentrating on energy-efficient and sustainable construction practises to lower building carbon footprints in order to meet the aim. In order to encourage sustainable construction practises, the EU has sent member states a directive known as "New Energy Performance in Building."

According to the research report "Europe Smart Home Market Outlook, 2028," the Europe Smart Home market is anticipated to add USD 37.36 Billion from 2023 to 2028. One of the most significant trends in the European smart home market is the increasing integration of various smart devices and systems. Homeowners are looking for seamless connectivity between devices like smart speakers, thermostats, lighting, security cameras, and more. Integration often happens through platforms like Apple HomeKit, Google Home, and Amazon Alexa. Voice-activated smart assistants like Amazon's Alexa and Google Assistant are gaining popularity in Europe. Users can control various devices and get information simply by speaking commands. This hands-free approach to smart home control is attractive to many consumers. In many European countries, there's a focus on providing solutions that allow elderly individuals to age in place rather than moving to assisted living facilities. Smart home technologies, including medical monitoring and fall detection devices, are helping to make this possible. The Internet of Things (IoT) is a driving force in the smart home market. Interoperability is a key trend, allowing different brands and types of smart devices to work together seamlessly. Standards like Zigbee and Z-Wave help in achieving this. The integration of smart home entertainment systems, including smart TVs, audio systems, and streaming devices, is becoming more common. These systems can be controlled with voice commands and can create immersive entertainment experiences. Many consumers prefer DIY installation of smart home devices due to cost savings and convenience. This trend has led to the development of user-friendly, self-installable products. Mobile apps have become a crucial part of the smart home experience. These apps allow users to control and monitor their devices remotely, receive alerts, and customize settings.

In terms of country the market is divided into Germany, United Kingdom, France, Italy, Spain, and Russia. Among them the United Kingdom is leading the Europe Smart Home Market.

The United Kingdom boasts a high level of internet connectivity and smartphone penetration. This infrastructure is essential for the effective deployment and use of smart home devices that rely on internet connectivity and mobile apps for control and monitoring. United Kingdom consumers have shown a high level of awareness and early adoption of smart home technology. This is partly due to extensive marketing efforts by technology companies and retailers, as well as a tech-savvy population. The United Kingdom has a significant number of homeowners, and smart home technology is often more appealing and practical for this demographic. Homeowners are more likely to invest in smart home devices that can increase the convenience and security of their properties. The United Kingdom has an aging population, and smart home technology is seen as a way to help seniors live more independently and securely in their homes. This has fuelled the adoption of home automation and health monitoring solutions. High levels of urbanization in the United Kingdom, especially in cities like London, create a conducive environment for the adoption of smart home technology, as urban residents are often more receptive to tech solutions. Cultural factors, such as the desire for convenience, a preference for automated solutions, and an interest in the latest gadgets, have contributed to the growth of the smart home market in the United Kingdom. Several cities in the United Kingdom, including London, have initiated smart city projects. These projects often include smart home elements, such as connected street lighting, public transportation systems, and waste management, driving awareness and interest in smart technology among residents.

In 2023, the security and access control segment is expected to dominate the European smart home market based on product.

Safety and security are paramount concerns for homeowners across Europe. The rising crime rates and the need to protect property and loved ones have driven significant interest in smart security solutions. There is a growing awareness among European consumers about the benefits of smart security and access control systems. This awareness has been fuelled by marketing efforts, news stories, and word-of-mouth recommendations. Advancements in technology have made smart security and access control systems more accessible and user-friendly. Modern systems offer features like remote monitoring, real-time alerts, and integration with smartphones, making them highly attractive. Smart security systems can be seamlessly integrated with other smart devices in the home, such as smart locks, video doorbells, and security cameras. This integration enhances the overall security and automation of the home, providing homeowners with a comprehensive solution. Smart security and access control systems can be customized to fit the specific needs of homeowners. This level of customization is appealing, as it allows users to design a security system that aligns with their lifestyle and preferences. Many security and access control systems offer optional professional monitoring services. In the event of an alarm trigger, these services can dispatch help, which is particularly important for fire, intrusion, and medical emergencies.

The Wireless Protocols Segment is expected to have the highest CAGR during the forecast period. Furthermore, based on software and services, the market is divided into behavioural and proactive.

Wireless smart home devices are easier to install and set up compared to their wired counterparts. They do not require the installation of cables and wires, which can be a time-consuming and complex process. This simplicity appeals to both homeowners and professional installers. Wireless protocols allow for easy scalability. Homeowners can start with a few devices and expand their smart home network gradually, without the need for extensive rewiring. This scalability is attractive as it allows users to adapt their smart homes to changing needs and budgets. Wireless systems are ideal for retrofit installations in existing homes. Homeowners do not need to make structural changes to install smart devices. This adaptability is essential in a region like Europe, where many homes are old and may not have the infrastructure for wired solutions. Many wireless smart home devices are battery-powered, eliminating the need for constant access to electrical outlets. This enhances the versatility of these devices and their placement options. Furthermore, Smart home systems can learn and adapt to the habits and preferences of residents. For example, a smart thermostat can adjust heating and cooling settings based on the residents' daily routines, optimizing energy consumption and comfort. Behavioural analysis can be applied in healthcare settings to monitor the well-being of individuals, especially seniors who choose to age in place. For example, sensors can track activity levels and send alerts if there are deviations from typical behaviour. With the rise of remote work, smart home applications cater to creating efficient home office environments. This includes adjustable standing desks, ergonomic lighting, and noise-cancelling devices.

Based on the sales channel, the market is segmented into direct and indirect. In addition, based on application, the market is divided into new construction and retrofit. The retrofit segment is expected to grow at the highest CAGR during the forecast period of 2023-2028.

The indirect segment in the smart home market typically includes retailers, distributors, and e-commerce platforms. These channels offer a wide range of smart home products from various manufacturers and brands. Consumers have the option to choose from a diverse selection of smart devices, including lighting systems, thermostats, security cameras, smart speakers, and more. This variety can attract a broader customer base. Indirect channels offer convenience and accessibility to consumers. Customers can easily purchase smart home products online or in physical stores, making it a more straightforward and immediate choice for many. E-commerce platforms, in particular, offer the convenience of shopping from home, and retailers allow consumers to see products in person before making a purchase. Retailers and e-commerce platforms frequently run promotions and offer discounts on smart home products, making them more affordable and attractive to consumers. These promotions can drive higher sales volumes. Retailers and e-commerce platforms often form partnerships with smart home device manufacturers, enabling them to offer exclusive products or early access to new innovations. This can further attract consumers to these indirect channels. In addition based on application, Retrofit smart home solutions are typically easier and less expensive for consumers to adopt. Unlike new construction installations, retrofit solutions don't require extensive remodelling or rewiring of the entire home. This lower entry barrier makes it more appealing to a broader range of homeowners. Retrofit smart home devices and systems are often more cost-effective compared to integrated solutions designed for new constructions. The affordability of retrofit options can make them attractive to a broader consumer base. Retrofit solutions allow homeowners to upgrade their homes incrementally. They can start with a few devices and gradually expand their smart home ecosystem as their needs and budget allow. This flexibility in expansion is appealing to consumers. Many European countries have aging housing stock, and retrofit solutions provide a way to modernize these homes without the need for extensive renovations. This factor contributes to the sustained demand for retrofit smart home solutions.

Recent Developments:

• In January 2023, Samsung unveiled its new ISOCELL HP2 image sensor, featuring 200 million 0.6-micrometer pixels for high-end smartphones. The sensor utilizes pixel binding technology to adapt to low-light conditions, switching between 50MP and 12.5MP modes while also supporting 8K video capture at 33MP resolution
• In January 2023, Panasonic Holdings Corporation developed highly sensitive hyperspectral imaging technology using compressed sensing. This breakthrough enables the identification of subtle color differences, enhancing image analysis and recognition accuracy while maintaining the usability of conventional color cameras. The achievement was published in Nature Photonics in collaboration with imec, a Belgian research institute, marking the world's first demonstration of efficient hyperspectral imaging with compressed sensing.
• In April 2022, Johnson Controls acquired Security Enhancement Systems, a provider of mobile-based, keyless access control solutions used in critical infrastructure, including telecommunication towers. The acquisition allows Johnson Controls to own the full experience of service providers gaining safe and simplified access to remote sites and key infrastructures. Customers will benefit from a single, trusted supplier for corporate and other security solutions. The integration of mobile, Cloud, and on-premises technologies by Security Enhancement Systems provides a comprehensive solution for multi-site security. Security Enhancement Systems has pioneered highly efficient and adaptable locking systems for remote sites with different security requirements for perimeter control, equipment, shelters, and other critical assets for telecommunications, utilities, transportation, and data centers.
• In March 2022, ASSA ABLOY acquired JOTEC Service & Vertriebsges. mbH, a regionally prominent industrial door distributor and service provider in Germany. JOTEC's strong offering of entrance automation, a well-developed service business, and a large customer base will benefit ASSA ABLOY.
• October 2021, ADT announced the acquisition of Edwards Electronic Systems, Inc. The purchase of Edwards Electronic Systems further deepens the ADT Commercial organization’s integration capabilities and fire and life safety expertise to serve mid-market, national, and large-scale commercial customers in the Carolinas region.
• November 2021, Siemens Smart Infrastructure has launched its new selector application for protection devices as part of the energy automation and protection service portfolio. The Easy Relay Retrofit Selector Application makes it easy for users to select protection legacy device or 3rd. Party equipment for a new device or retrofit service. The app supports all verticals in which protection devices are installed. The simple operation does not require any expert knowledge on protection technology.
• November 2021, bp and Schneider Electric have partnered to help decarbonize high emissions in European Union and the United Kingdom. Together, bp and Schneider Electric’s complementary skills in consulting, designing, building, and operating decarbonized energy systems will help companies achieve their decarbonization targets. In addition, bp and Schneider Electric intend to explore business models to enable customers to lessen the complexity, risk, and capital investment of decarbonization by operating such energy systems as a service.

Companies Covered in this report:

Honeywell International, Inc, Siemens AG, Schneider Electric SE, ABB, Samsung Electronics Co., Ltd., Johnson Controls International PLC, Assa Abloy AB, General Electric Company, LG Corporation, Robert Bosch GmbH, Signify N.V, Samsung Electronics Co. Ltd.

Considered in this report

• Geography: Europe
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Europe Smart Home market Outlook with its value and forecast along with its segments
• Country-wise Smart Home market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:

• Germany
• United Kingdom
• France
• Italy
• Spain
• Russia

By Product

• Security and Access Control
• Lighting Control
• Entertainment System
• HVAC Control
• Smart Speakers
• Smart Home Appliances
• Smart Kitchen Appliances
• Smart Home Healthcare Systems
• Smart Furniture
• Other Controls (Smart Meter, Smart Plug, Smart Smoke detector, Smart hub)

By Protocols

• Wireless Protocols
• Wired Protocols
• Hybrid Protocols

By Application

• New Construction
• Retrofit

By Sales Channel

• Direct
• Indirect

By Software & Services

• Behavioural
• Proactive

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Smart Home industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.