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Smart Homes and Home Automation 11th Edition

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    Report

  • 240 Pages
  • October 2024
  • Region: Global
  • Berg Insight AB
  • ID: 5576293

Smart home and home automation systems include a wide range of solutions for controlling, monitoring and automating functions in the home. The definition of a smart home system is one that is accessible from remote and includes a smartphone app or a web portal user interface. Devices that only can be controlled and automated locally, through switches, timers, sensors and remote controls, are thus not included in the scope of this study. Smart home systems can be grouped into seven primary categories: security and access control systems; energy management and climate control systems; audio-visual and entertainment systems; lighting and window control systems; home appliances; service robotics and irrigation and water management systems.

126 million homes in Europe and North America were smart at the end of 2023

A point solution will in many cases constitute a consumer’s first smart home purchase. The most popular point solutions to date, in terms of sold units, include smart thermostats, smart light bulbs, smart plugs, connected security cameras, voice-controlled smart speakers and floor cleaning robots. These products are marketed by incumbent OEMs such as Signify, Resideo, Danfoss, Belkin, Chamberlain, Schlage, Assa Abloy and iRobot and newer entrants such as Ecobee, Sonos, Arlo, Nuki, Mysa, IKEA, Wyze Labs and SharkNinja.

In the whole-home system market, traditional home automation vendors such as Crestron Electronics, Control4, Savant Systems, eQ-3, Shelly and Loxone are facing new competition as companies from adjacent industries have entered the market. Communications and security service providers such as Verisure, ADT, Vivint, Comcast, SimpliSafe and Telus have established themselves among the largest whole-home solution vendors in North America and Europe by combining home security services with smart home features.

The North American smart home market continues to grow. The installed base of smart home systems reached 279.4 million at the end of 2023. An estimated 40.0 million of these were multifunction or whole-home systems whereas 239.4 million were point solutions designed for one specific function. As some homes have more than one smart system in use, the installed base totalled an estimated 60.8 million smart homes at the end of the year. This corresponds to 41.3 percent of all households, placing North America as the most advanced smart home market in the world. Between 2023 and 2028, the number of households that adopt smart home systems is forecasted to grow at a compound annual growth rate (CAGR) of 6.6 percent, resulting in 83.8 million smart homes. Market revenues reached US$_48.1 billion (€ 44.5 billion) in 2023. The market is expected to grow at a CAGR of 9.2 percent between 2023 and 2028, reaching US$_74.8 billion (€ 69.1 billion) in yearly revenues at the end of the forecast period.

The European market for smart home systems is still behind the North American market in terms of market penetration and maturity. However, the market has now grown to become almost as large as the North American market. At the end of 2023, there were a total of 218.2 million smart home systems in use in the EU27+3 countries. Around 28.9 million of these systems were multifunction or whole-home systems whereas 189.3 million were point solutions. This corresponds to around 65.5 million smart homes when overlaps are taken into account, meaning that 27.8 percent of all households in Europe were smart at the end of the year. The number of European households to adopt smart home systems is forecasted to grow at a compound annual growth rate (CAGR) of 9.1 percent during the next five years, resulting in 101.2 million smart homes by 2028. Market revenues reached € 36.2 billion (US$ 39.1 billion) in 2023.

The market is forecasted to grow at a CAGR of 12.5 percent between 2023 and 2028 to reach € 65.0 billion (US$ 70.3 billion) at the end of the forecast period. Connectivity adds several benefits to the most commonly used products and systems in the home, including home security systems, door locks, indoor climate control devices, lights, irrigation systems, home appliances and entertainment solutions. The ability to view information and manage various settings of the home from remote enables energy and cost savings, enhances security and safety, and provides convenience for homeowners. In several product categories connectivity is now becoming a standard feature and consumers are increasingly expecting new products to be smart and connected.

Highlights from the report

  • Insights from 30 executive interviews with market leading companies.
  • 360-degree overview of the smart homes & home automation ecosystem.
  • Summary of industry trends in key vertical market segments.
  • Statistical data on adoption of smart home systems in Europe and North America.
  • New market forecasts lasting until 2028.
  • Detailed reviews of the latest initiatives launched by industry players.
  • Updated profiles of the key vendors on this market.

The report answers the following questions

  • Which are the main applications within smart homes and home automation?
  • What are the main drivers behind growth in Europe and North America?
  • What are the business models and channels-to-market for smart home solutions?
  • How are product OEMs and whole home solution vendors positioning themselves?
  • Will the new Matter standard become a market catalyst?
  • Which are the leading whole-home system vendors in Europe and North America?
  • What is the potential market size for cellular IoT in home automation?
  • How will the smart home market evolve in the next five years?

Who should read this report?

Smart Homes and Home Automation is the foremost source of information about the emerging market for connected home applications. Whether you are a product vendor, service provider, telecom operator, investor, consultant, application developer or government agency, you will gain valuable insights from our in-depth research.

Table of Contents


Executive Summary
1 Smart Homes and Home Automation
1.1 Introduction
1.2 Types of home automation
1.2.1 Security and access control systems
1.2.2 Energy management and climate control systems
1.2.3 Audio-visual and entertainment systems
1.2.4 Lighting and window control systems
1.2.5 Irrigation and water management systems
1.2.6 Home appliances
1.2.7 Service robotics
1.2.8 Multifunction and whole-home automation systems
1.3 Home automation market segments
1.3.1 Mainstream houses and multi-family dwellings
1.3.2 The custom (luxury) segment
1.3.3 New homes versus existing homes
1.4 Channels to market
1.4.1 Professional installation
1.4.2 Retail
1.4.3 Service providers

2 Networks and Communications Technologies
2.1 Overview
2.1.1 Different approaches to establishing interoperability
2.1.2 Technology choices of product OEMs
2.1.3 Technology choices of whole-home solution vendors
2.2 Smart home networking technologies and standards
2.2.1 Bluetooth
2.2.2 DECT ULE
2.2.3 EnOcean
2.2.4 Home Connectivity Alliance (HCA)
2.2.5 KNX
2.2.6 LPWA
2.2.7 Matter
2.2.8 Open Connectivity Foundation
2.2.9 OpenTherm
2.2.10 Thread
2.2.11 Wi-Fi
2.2.12 Zigbee
2.2.13 Z-Wave
2.3 Smart home ecosystems and hubs
2.3.1 Amazon Alexa
2.3.2 Apple HomeKit and Siri
2.3.3 Flic (Shortcut Labs)
2.3.4 Google Home and Google Assistant
2.3.5 Homey (LG Electronics)
2.3.6 IFTTT
2.3.7 LG Electronics
2.3.8 Mediola
2.3.9 Olisto
2.3.10 Samsung SmartThings
2.4 Smart home platforms
2.4.1 Alarm.com
2.4.2 Ayla Networks
2.4.3 Essence Group
2.4.4 OBLO Living
2.4.5 ThroughTek
2.4.6 Tuya
2.4.7 Yonomi (Allegion)

3 Technology Providers and OEMs
3.1 Market overview
3.1.1 Point solutions - an entry into the smart home
3.1.2 Smart home strategies for product OEMs
3.1.3 New entrants challenge incumbents with connected products
3.2 Security and access control system vendors
3.2.1 Arlo Technologies
3.2.2 Assa Abloy
3.2.3 Canary (Smartfrog Group)
3.2.4 Chamberlain Group
3.2.5 Ezviz Network (Hikvision)
3.2.6 Minut
3.2.7 Nuki Home Solutions
3.2.8 Reolink
3.2.9 Schlage
3.2.10 Wyze Labs
3.2.11 YI Technology
3.3 Energy management and climate control system vendors
3.3.1 Centrica
3.3.2 Danfoss
3.3.3 Ecobee (Generac)
3.3.4 Eve Systems (ABB)
3.3.5 Google Nest
3.3.6 Mysa
3.3.7 Netatmo (Legrand)
3.3.8 Sensibo
3.3.9 Tado
3.3.10 Toon (Eneco)
3.4 Audio-visual and entertainment system vendors
3.4.1 Bose
3.4.2 Harman (Samsung Electronics)
3.4.3 Kaleidescape
3.4.4 Naim Audio
3.4.5 Sonos
3.4.6 Sound United (Masimo)
3.5 Lighting and window control system vendors
3.5.1 Acuity Brands
3.5.2 Belkin
3.5.3 IKEA
3.5.4 Ledvance (MLS)
3.5.5 Leviton
3.5.6 LIFX (Feit Electric)
3.5.7 Merkury Innovations
3.5.8 Plejd
3.5.9 Signify
3.5.10 Velux
3.6 Irrigation and water management system vendors
3.6.1 Hozelock
3.6.2 Flume
3.6.3 Gardena and Orbit Irrigation (Husqvarna)
3.6.4 Moen (Fortune Brands Innovations)
3.6.5 Rachio
3.7 Home appliances vendors
3.7.1 BSH Hausgeräte (Bosch)
3.7.2 Electrolux
3.7.3 GE Appliances (Haier)
3.7.4 Haier
3.7.5 Whirlpool
3.8 Service robotics vendors
3.8.1 Ambrogio Robot (Zucchetti Centro Sistemi)
3.8.2 Dyson
3.8.3 Ecovacs
3.8.4 Husqvarna
3.8.5 iRobot
3.8.6 Labrador Systems
3.8.7 Robomow (Stanley Black & Decker)
3.8.8 Roborock
3.8.9 SharkNinja Operating
3.8.10 Worx Landroid (Positec)

4 Service Providers and Whole-Home System Vendors
4.1 Market overview
4.2 Market segments and go-to-market strategies
4.2.1 Traditional home automation
4.2.2 DIY systems
4.2.3 Professionally monitored security
4.3 Whole-home system OEMs
4.3.1 ABB
4.3.2 Bosch
4.3.3 Control4 (Resideo)
4.3.4 Crestron Electronics
4.3.5 Delta Dore
4.3.6 Deutsche Telekom
4.3.7 D-Link
4.3.8 Eltako
4.3.9 Ezlo Innovation
4.3.10 Futurehome
4.3.11 Gira
4.3.12 Grenton
4.3.13 HomeMatic (eQ-3)
4.3.14 Leedarson IoT Technology
4.3.15 Legrand
4.3.16 Loxone Electronics
4.3.17 Lutron Electronics
4.3.18 myGEKKO (Ekon)
4.3.19 Nice Group
4.3.20 Resideo Technologies
4.3.21 Savant Systems
4.3.22 Schneider Electric
4.3.23 Shelly Group
4.3.24 Somfy
4.3.25 ThinKnx (Pulsar Engineering)
4.3.26 TP-Link
4.3.27 Universal Electronics
4.3.28 Xiaomi
4.4 Smart home service providers
4.4.1 ADT
4.4.2 Altice France
4.4.3 Brinks Home (Monitronics)
4.4.4 Comcast
4.4.5 Cox Communications
4.4.6 Frontpoint
4.4.7 Prosegur
4.4.8 Ring (Amazon)
4.4.9 Sector Alarm
4.4.10 Simplisafe
4.4.11 Telus
4.4.12 Verisure
4.4.13 Vivint Smart Home (NRG Energy)

5 Market Forecasts and Conclusions
5.1 Europe
5.1.1 Revenues
5.1.2 Shipments
5.1.3 Installed base
5.2 North America
5.2.1 Revenues
5.2.2 Shipments
5.2.3 Installed base
5.3 Popular smart home product categories
5.3.1 Smart speakers and displays
5.3.2 Smart thermostats and radiator valves
5.3.3 Smart lighting
5.3.4 Floor cleaning robots
5.4 Market trends and analysis
5.4.1 A new major platform player is challenging the incumbents
5.4.2 The rise and potential fall of smart speakers and voice assistant services
5.4.3 Will Matter solve the interoperability problems in the smart home industry? ..
5.4.4 Surging energy prices create demand for smart energy efficiency solutions .
5.4.5 Connectivity - soon a standard feature in the home appliances segment
5.4.6 Lower price points opens the doors to the mass market
5.4.7 Cellular IoT in the smart home and home security markets
5.4.8 Open versus closed smart home ecosystems
5.4.9 Short product lifecycles damage consumer trust
5.4.10 Smart home companies introduce paid services
5.4.11 Smart insurance for the connected home
5.4.12 Mergers and acquisitions in the smart home industry

List of Figures
Figure 1.1: Example of an alarm system
Figure 1.2: Examples of security and access control systems
Figure 1.3: Examples of energy management and climate control devices
Figure 1.4: Sonos multi-room audio system
Figure 1.5: Philips Hue lighting system
Figure 1.6: B-hyve smart watering solution
Figure 1.7: Samsung Bespoke AI Family Hub Smart Fridge
Figure 1.8: Examples of service robots
Figure 1.9: Households, dwelling types and homeownership by country (EU27+3 2023)
Figure 1.10: Households, dwelling types and homeownership by country (NA 2023)
Figure 1.11: Existing homes and housing starts (EU27+3 2020-2023)
Figure 1.12: Existing homes and housing starts (North America 2020-2023)
Figure 1.13: Channels to market
Figure 2.1: Illustration of interoperability at different levels
Figure 2.2: Examples of technology choices by product OEMs
Figure 2.3: Examples of technology choices by whole-home solution vendors
Figure 2.4: HCA cloud-to-cloud connection
Figure 2.5: Matter application layer
Figure 2.6: Thread network topology
Figure 2.7: Wi-Fi generations
Figure 2.8: The Flic button
Figure 2.9: Homey app, Homey Bridge and Homey Pro
Figure 2.10: WeR@Home smart home and home security system
Figure 2.11: Tuya IoT Cloud Platform
Figure 3.1: Installed base per application area (EU27+3 and North America 2023)
Figure 3.2: Smart home strategies of product OEMs
Figure 3.3: Examples of incumbents and new entrants by application area
Figure 3.4: Arlo security cameras
Figure 3.5: LiftMaster Secure View garage door opener with camera built-in
Figure 3.6: Minut Home Sensor
Figure 3.7: Nuki Smart Door Lock Pro
Figure 3.8: Wyze Home Monitoring security system
Figure 3.9: Danfoss Ally smart heating system
Figure 3.10: Ecobee Smart Thermostat Premium and SmartSensor
Figure 3.11: Nest Learning Thermostat and Nest Cam
Figure 3.12: Sensibo Sky, Air and Air PRO smart AC controllers
Figure 3.13: Tado X product line and app
Figure 3.14: Bose Smart Speaker 500
Figure 3.15: Shipments and installed base of Sonos products (Worldwide 2018-2023)
Figure 3.16: Juno Smart Speaker Light
Figure 3.17: Plejd dimmers, gateway and app
Figure 3.18: Philips Hue camera, sensors, gateway and light bulbs
Figure 3.19: Installed base of Signify connected light points (World 2017-2023)
Figure 3.20: Flume Water Monitor and Bridge
Figure 3.21: Flo Smart Water Monitor and Shutoff and the Smart Water Network app
Figure 3.22: Rachio Smart Hose Timer
Figure 3.23: GE Kitchen Hub
Figure 3.24: Husqvarna Automower 435X AWD
Figure 3.25: Labrador Retriever
Figure 3.26: Shark Detect Pro robot vacuum and app
Figure 3.27: Worx Landroid Vision robot lawn mower
Figure 4.1: Penetration of whole-home automation systems (EU27+3 and NA 2023)
Figure 4.2: Competitive landscape - Service providers and whole-home system OEMs
Figure 4.3: Market segments
Figure 4.4: Top traditional home automation vendors (Europe and NA 2023)
Figure 4.5: Top interactive home security providers (Europe and NA 2023)
Figure 4.6: Interactive security systems with professional monitoring (NA 2022-2028)
Figure 4.7: Installed base of whole-home systems (North America 2023)
Figure 4.8: The HomePilot gateway and app
Figure 4.9: Eltako’s Matter-compatible universal dimmer
Figure 4.10: Grenton touch panels
Figure 4.11: eQ-3 Homematic IP system
Figure 4.12: The Yubi Home Pro gateway and HR40 remote control
Figure 4.13: Savant’s energy management dashboard
Figure 4.14: ADT+ home security system
Figure 4.15: Xfinity home security system
Figure 4.16: Prosegur alarm connections (World 2015-2023)
Figure 4.17: Sector Alarm home alarm system
Figure 4.18: Telus security subscriber base (North America 2018-2023)
Figure 4.19: Verisure home security system
Figure 4.20: Verisure alarm subscribers (2016-2023)
Figure 4.21: Vivint Smart Home subscriber base (North America 2016-2023)
Figure 5.1: Smart home penetration and installed base (EU27+3 and NA 2022-2028)
Figure 5.2: Market overview (EU27+3 2022-2028)
Figure 5.3: Smart home revenues (EU27+3 2022-2028)
Figure 5.4: Revenues by whole-home system segment (EU27+3 2023-2028)
Figure 5.5: Shipments per application area (EU27+3 2022-2028)
Figure 5.6: Installed base per application area (EU27+3 2022-2028)
Figure 5.7: Market overview (North America 2022-2028)
Figure 5.8: Smart home revenues (North America 2022-2028)
Figure 5.9: Market share by whole-home system segment (North America 2023-2028)
Figure 5.10: Shipments per application area (North America 2022-2028)
Figure 5.11: Installed base per application area (North America 2022-2028)
Figure 5.12: Installed base of smart speakers and displays (EU and NA 2022-2028)
Figure 5.13: Homes with smart thermostats (EU27+3 and NA 2022-2028)
Figure 5.14: Installed base of smart light points (EU27+3 and NA 2022-2028)
Figure 5.15: Installed base of floor cleaning robots (EU27+3 and NA 2022-2028)
Figure 5.16: Cellular connections in the smart home market (2022-2028)
Figure 5.17: Mergers and acquisitions in the smart home industry (World 2014-2024)

Samples

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Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • ABB
  • Bosch
  • Control4 (Resideo)
  • Crestron Electronics
  • Delta Dore
  • Deutsche Telekom
  • D-Link
  • Eltako
  • Ezlo Innovation
  • Futurehome
  • Gira
  • Grenton
  • HomeMatic (eQ-3)
  • Leedarson IoT Technology
  • Legrand
  • Loxone Electronics
  • Lutron Electronics
  • myGEKKO (Ekon)
  • Nice Group    
  • Resideo Technologies
  • Savant Systems
  • Schneider Electric
  • Shelly Group
  • Somfy
  • ThinKnx (Pulsar Engineering)
  • TP-Link
  • Universal Electronics
  • Xiaomi
  • Smart home service providers
  • ADT
  • Altice France
  • Brinks Home (Monitronics)
  • Comcast
  • Cox Communications
  • Frontpoint
  • Prosegur
  • Ring (Amazon)
  • Sector Alarm
  • Simplisafe
  • Telus
  • Verisure
  • Vivint Smart Home (NRG Energy)

Methodology

 

 

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Table Information