Home Automation Market Overview, 2023-28

The term "global home automation systems" refers to a broad range of networked gadgets and technologies intended to improve and automate house operations globally. Homeowners enjoy increased convenience, energy efficiency, security, and customization of their living environments with these systems that integrate a variety of smart devices, sensors, and control mechanisms. The European Design and Automation Association (EDAA), a non-profit that fosters the development and application of electronic design and design automation (EDA) technologies, and KNX, an open standard for commercial and residential building automation, are examples of associations and programs that are supporting the innovations in home automation systems. Along with this, Association for Smarter Homes & Buildings (ASHB) is a not-for-profit industry association that promotes advanced technologies for the automation of homes and buildings in North America. This association encourages the development, promotion, pursuit and understanding of integrated systems and automation in homes and buildings. Some governments are supporting the adoption of home automation technologies through incentives, regulations, and smart city projects. These initiatives encourage the integration of smart technology into homes, particularly for energy efficiency and sustainability. A wide range of gadgets and devices designed to enhance the functionality and convenience of modern homes includes devices like Amazon Echo and Google Home serve as the central hub for controlling various smart gadgets through voice commands. Products like Ring and Nest Hello provide real-time video and two-way communication with visitors at front door. They can send alerts to smartphone, allowing monitoring property from anywhere. Devices like Arlo, Blink, and Wyze offer wireless and weatherproof cameras with motion detection, night vision, and cloud storage options. As technology continues to advance, home automation systems are becoming increasingly accessible and affordable, transforming houses into intelligent, interconnected spaces that adapt to the needs and preferences of their occupants.

According to the research report," Global Home Automation Market Overview, 2023-2028" the market is anticipated to cross USD 81.91 Billion market size by 2028, increasing from USD 46.53 Billion in 2022. The market is projected to grow with 10.30% CAGR by 2023-28. A number of important elements that are changing how individuals interact with their living spaces are causing the worldwide home automation system industry to expand quickly. At the vanguard of this expansion is the deployment of 5G networks, which offer faster and more dependable connectivity - essential for facilitating real-time communication and management of smart home appliances. The user experience is enhanced overall by the smooth interaction that this greater connectivity offers with smart devices. The ability to remotely control and monitor devices, adjust settings, and create automation routines from smartphones and other devices has made these systems more accessible and user-friendly, driving demand. The introduction of new emerging devices, ranging from advanced security cameras to health and wellness monitors, is continually expanding the scope and capabilities of home automation. These devices address various aspects of home life, including security, comfort, and health, thereby catering to diverse consumer needs. The COVID-19 pandemic has also had a profound impact on the home automation market. With more people spending time at home, there has been an increased focus on creating comfortable and productive living environments. As a result, the adoption of home automation systems, including smart lighting, thermostats, and entertainment systems, has surged, as people seek to enhance their indoor experiences. IoT advancements are driving innovation within the market. The continued development of IoT standards, such as Matter (formerly Project CHIP), is promoting interoperability among different smart devices, simplifying the process of building comprehensive home automation systems. Government support has played a pivotal role in fostering the growth of the home automation system market.

The report is segmented based on the regions including North America, Europe, Asia Pacific, South America, and Middle Eat & Africa. One of the main factors propelling the home automation system market in North America is the systems' ever-expanding spectrum of applications. With the integration of monitoring equipment and remote health services, home automation has evolved beyond the conventional smart lighting and thermostat control to include industries like healthcare. The market for home automation systems in the Asia-Pacific region is changing dramatically, changing the way people in this multicultural region work, live, and engage with their living environments. This dynamic and quickly expanding industry is being driven by a confluence of factors, such as greater urbanization, rising disposable incomes, and growing awareness of the advantages of smart home technology. The South American real estate market is crucial to the home automation system industry. To entice both investors and buyers, a lot of real estate developers are adding smart home amenities to their developments. Home automation systems are growing in popularity in the Middle East and Africa (MEA) which is anticipated to reach at more than USD 4 Billion by 2028. The Middle East has seen a significant uptake of smart homes, particularly in affluent cities like Dubai and Riyadh.

The report is segmented based on the Product Type to; luxury home automation system, mainstream home automation system, DIY (do it yourself) home automation system, and managed home automation system. The dominant player in this market is the mainstream home automation system. Because of their accessibility and cost, these systems are preferred by a broad spectrum of users. For the average homeowner, they are an appealing option because they usually come with all the necessary smart features for things like climate control, lighting control, and security. Simultaneously, luxury home automation systems hold a significant market share, catering to those seeking advanced and highly customizable solutions. These high-end systems often encompass integrated entertainment, intricate lighting controls, and sophisticated climate management, appealing to affluent individuals looking to create a truly immersive smart home experience. Moreover, there's a growing trend towards DIY home automation systems. The rising numbers of regions are becoming interested in DIY smart home setups, which eliminate the need for expert installation. This do-it-yourself method is empowering and economical, letting customers customize the automation features to suit their needs. It is anticipated that as technology advances and becomes more accessible, the demand for DIY systems will only grow in the upcoming years, 2023-2028. In the global market, managed home automation systems are also quite important. These systems offer a thorough and detached approach to home automation, and are usually installed and maintained by professionals. Larger or more intricate assets that require the highest level of integration and customization are favored by their owners. The global home automation market is characterized by this diverse array of choices, and it is poised for continued growth as technology advancements and the desire for energy efficiency and convenience continue to drive consumer demand.

The network technology segmentation of the global home automation system market was evident, with wireless technology occupying a leading position. This pattern demonstrated how consumers have a strong preference for wireless solutions and how wireless home automation technology has advanced significantly. One significant benefit of wireless systems was its ease of installation, as it did not require the expensive and frequently disruptive rewiring of dwellings. This increased accessibility and convenience of smart home technology adoption for a wide variety of customers, including those with existing properties. The ease of installation and setup contributed to the quick and hassle-free integration of home automation systems. Wireless technology provided the crucial benefit of seamless connectivity, enabling users to remotely control and monitor various aspects of their homes using smartphones and other devices. This aspect of remote accessibility was highly appealing, as it empowered homeowners with greater control over their living environments, from adjusting lighting and temperature to managing security systems, even when they were away from home. Additionally, there have been market segments catering to certain use cases or preferences for wired and power line-based technology.

The market is segmented based on the Wireless technologies into Wi-Fi, Zigbee, Bluetooth and Others (IR, Z-Wave, GSM, etc.) Globally, the preference for wireless technology in home automation systems is prominently directed towards Wi-Fi, reflecting its widespread adoption and versatility. Wi-Fi-enabled smart devices have become increasingly popular among homeowners due to their high-speed connectivity, reliability, and compatibility with a wide range of devices. The market dominance of Wi-Fi in the realm of home automation is largely attributed to its seamless integration with existing home networks and internet infrastructure, allowing for convenient remote access and control of smart devices from virtually anywhere. This convenience has significantly contributed to its widespread adoption, making it the go-to choice for homeowners seeking a robust and user-friendly home automation experience. Following the trajectory of Wi-Fi, the Zigbee, and Bluetooth have also secured significant shares in the wireless home automation market. Zigbee's low power consumption and ability to support a large number of devices make it an attractive option for creating interconnected smart home ecosystems. It is particularly favored for applications that require long battery life and low data rate transmissions. Similarly, Bluetooth's ubiquity in consumer electronics has translated into its increased utilization in smart home devices. With its low power consumption, simplicity of integration, and widespread compatibility with smartphones and tablets, Bluetooth has found its niche in the home automation sector, especially for shorter-range communication and device connectivity.

The Global home automation system market is segmented based on fitment type into retrofit and new construction. Retrofit solutions are increasingly popular, as homeowners seek to upgrade existing properties with smart technologies to enhance convenience and energy efficiency. This trend is driven by a growing awareness of sustainability and the desire to reduce energy consumption. However, the new construction segment is also robust, as modern homes are often equipped with automation systems right from the design and construction phase, reflecting the demand for integrated smart features in contemporary living spaces. Conversely, new construction fitment, while slightly trailing behind retrofit installations, is an important segment of the market. In newly constructed homes and buildings, incorporating home automation from the outset has become increasingly common. This approach allows for a more seamless integration of automation features into the building's infrastructure, ensuring that all components work harmoniously from the start. It's often preferred by architects, developers, and homeowners who are looking for a comprehensive, future-ready smart home experience, with features such as integrated lighting, HVAC, security, and entertainment systems. Ultimately, the coexistence of both retrofit and new construction fitment options underscores the versatility and adaptability of the global home automation market. It caters to the diverse needs and preferences of consumers, whether they are seeking to enhance their existing homes with the latest automation technologies or building new properties with smart features embedded in the very foundation.

In, the home automation system market exhibits a robust segmentation based on application, catering to a diverse range of consumer needs and preferences. These applications include security and access control, lighting control, entertainment systems, HVAC (Heating, Ventilation, and Air Conditioning) control, and other miscellaneous applications like smoke detectors and smart plugs. Security and access control systems play a pivotal role in the global home automation market, driven by the growing emphasis on safety and surveillance. These systems encompass smart doorbells, CCTV cameras, and advanced access control methods, providing homeowners with enhanced security, real-time monitoring, and peace of mind. The rise in urban living and concerns about property safety has contributed to the increasing adoption of these systems. Lighting control is another significant segment, offering users the ability to customize their home's ambiance, energy efficiency, and convenience. Smart lighting systems, featuring dimming options, color adjustments, and remote control, have gained popularity, promoting energy conservation and creating comfortable living spaces. Apart from these main uses, there are a few additional crucial components, such as smart plugs that provide control over many appliances and gadgets and smoke detectors that provide early fire detection. These characteristics add to the overall safety, efficiency, and convenience of houses, which helps explain the market's diversity for home automation systems. These apps are anticipated to significantly improve homeowners' lives and get more integrated for a full smart home experience as technology develops and integrates more smoothly.

Competitive Landscape

Assa Abloy AB, ABB, Honeywell International, Inc., Acuity Brands, Inc., Larsen & Toubro Ltd, Samsung Electronics Co., Ltd., Siemens AG, Legrand, Alphabet Inc, ADT Inc.

Considered in this report:

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

Aspects covered in this report:

• Global Home Automation System market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & Africa

By Type:

• Luxury Home Automation System
• Mainstream Home Automation System
• DIY (Do It Yourself) Home Automation System
• Managed Home Automation System

By Network Technology:

• Wireless
• Wired
• Power-Line Based

By Wireless Technology

• Wi-Fi
• Zigbee
• Bluetooth
• Others (IR, Z-Wave, GSM, etc.)

By Fitment:

• Retrofit
• New Construction

By Application:

• Security and Access Control
• Lighting Control
• Entertainment System
• HVAC Control
• Others (Smoke Detector, Smart Plugs, etc.)

Intended audience:

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