Smart Apartments Market Report 2025

The smart apartments market size has grown rapidly in recent years. It will grow from $3.61 billion in 2024 to $4.19 billion in 2025 at a compound annual growth rate (CAGR) of 16.1%. The growth in the historic period can be attributed to urbanization and housing trends, energy efficiency and sustainability, rising consumer expectations, security and safety concerns, property value enhancement.

The smart apartments market size is expected to see rapid growth in the next few years. It will grow to $6.81 billion in 2029 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to aging population and accessibility, integration with smart cities, health and wellness technologies, remote work and home automation, smart home as a service (SHAAS). Major trends in the forecast period include iot connectivity and interoperability, smart parking solutions, focus on data security and privacy, efficient waste management systems, community engagement platforms.

The growth of the smart apartment market is fueled by the widespread adoption of Internet of Things (IoT) devices in various aspects of people's daily routines. IoT involves the exchange of data through a network of sensors, appliances, meters, and other interconnected devices. In smart apartments, IoT-enabled sensors and devices enhance the efficiency of appliances, making the living space more sustainable, efficient, and secure. For instance, certain IoT sensors can autonomously activate lights upon detecting occupancy in a room, contributing a distinctive feature to smart apartments. The growing demand for IoT devices that simplify lifestyle contributes significantly to the expansion of the smart apartment market, as evidenced by a 21.5% growth in overall enterprise IoT spending to $201 billion in 2022.

The increasing popularity of smart homes is poised to drive the future growth of the smart apartment market. Smart homes are residences equipped with interconnected devices and systems that offer remote control and automation, enhancing convenience, energy efficiency, and security for residents. Smart homes serve as a blueprint for smart apartment complexes, providing a structured approach to integrating interconnected, automated, and energy-efficient systems that elevate residents' quality of life. A 2023 survey report by TechSee Augmented Vision Ltd. indicates a rising adoption of smart home devices, with 40% of U.S. consumers already using such devices, with smart speakers (49%) and smart thermostats (32%) being the most popular. Thus, the increasing popularity of smart homes is anticipated to propel the growth of the smart apartments market.

The current trend driving the smart apartment market is the concept of Apartment as a Service (AaaS). In this model, fully furnished smart apartments are rented for short to long periods, providing a cost-effective solution for tenants. AaaS allows rental operators to streamline operations and costs, enhancing residents' experiences and creating new revenue streams for owners. According to Entrata, 57% of US apartment tenants are willing to pay up to $20 per month for smart technology in their apartments.

Leading companies in the intelligent apartments market are concentrating on advanced technologies, including remote control and security monitoring, IoT-enabled systems, and automation solutions, to enhance living experiences, boost energy efficiency, and give residents greater control over their surroundings. Remote control and monitoring of security involve managing security systems, such as locks, cameras, and alarms, from a distance using digital devices like smartphones or computers. For example, in September 2024, Hitachi, Ltd., a Japan-based provider of digital systems and solutions, introduced a new IoT solution called BuilMirai for small and medium-sized buildings. This subscription-based solution is designed to improve building management efficiency, security, and comfort in smart apartments. BuilMirai allows users to remotely monitor and control building systems, contributing to enhanced energy management and operational efficiency. The solution includes an intuitive interface that simplifies the management of various building functions.

In June 2022, ADT Inc., a US-based provider of electronic security and other related services, acquired IOTAS for an undisclosed amount. This acquisition aims to strengthen ADT Inc.'s product line in the multifamily market. IOTAS, a US-based provider of a premier smart home technology platform, offers automation features commonly found in single-family homes. The company also provides technology to property management firms to attract tenants.

Major companies operating in the smart apartments market include Amazon.com Inc., Leviton Manufacturing Co. Inc., Apple Inc., Google LLC, Samsung Electronics Co. Ltd, Honeywell International Inc., Lennar Corporation, Schneider Electric SE, August Home, Asea Brown Boveri Ltd Ltd., Pulte Group Inc., Rachio Inc., Meritage Homes Corporation, Logitech International S.A., Yale, Crestron Electronics Inc., Vivint Smart Home Inc., Somfy Group, Metricon Homes LLC, Netatmo, Savant Systems LLC, Ecobee Inc., Lutron Electronics Co. Inc., Porter Davis Homes, Shea Homes, Henley Properties, Tado GmbH, Philips Hue, Control4 Corporation.

Asia-Pacific was the largest region in the smart apartments market in 2024. Africa is expected to be the fastest-growing region in the global smart apartments market during the forecast period. The regions covered in the smart apartments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart apartments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Smart apartments construction involves the process of creating, modifying, repairing, enhancing, or demolishing any smart apartment using a detailed design and plan. Smart apartments refer to multifamily properties featuring futuristic buildings equipped with advanced electronics and wireless devices. Interacting with the automated system in smart apartments typically requires a web portal or smartphone application as a user interface.

The primary product categories in smart apartments include building management systems (BMS), heating, ventilating, and air conditioning (HVAC), lighting control, security and access control, emergency alarm and evacuation systems, as well as audio and visual effects. Among these, lighting controls represent a category of smart lighting systems capable of managing the quantity, quality, and characteristics of light in a specific area. These intelligent devices contribute to reducing electricity waste and enhancing energy efficiency. Smart apartments find applications in residential areas, hotels, and various other settings.

The smart apartments market research report is one of a series of new reports that provides smart apartment market statistics, including global smart apartment market size, regional shares, competitors with a smart apartment market share, detailed smart apartment market segments, market trends and opportunities, and any further data you may need to thrive in the smart apartment industry. This smart apartment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The smart apartments construction market includes revenues earned by entities by constructing or remodeling and renovating smart apartments. This market includes the sales of residential housing general contractors (that is new construction, remodeling, or renovating existing residential structures), for-sale builders and remodelers of residential structures, residential project construction management firms, and residential design-build firms. The smart apartment work performed includes new work, additions, alterations, maintenance, and repairs. Smart buildings use automatic processes to control the buildings' operations, such as air conditioning, lighting, security and other systems. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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