The global smart home market size is expected to grow from US$78.3 billion in 2020 to $135.3 billion by 2025, at a compound annual growth rate of 11.6%, according to Research and Markets.
The growth of the smart home industry is driven by various factors, such as the increasing number of internet users, and the growing adoption of smart devices, rising disposable income of people in developing economies, adds the research group.
What’s more, the rising importance of home monitoring in remote locations, increasing need for energy-saving and low carbon emission-oriented solutions, the rapid proliferation of smartphones and smart gadgets, expansion of smart home product portfolio by a large number of players, growing concern about safety, security, and convenience among the general population will drive growth.
Entertainment and other control systems are likely to hold the largest share of the smart home market in 2020, according to Research and Markets. Entertainment has become an important part of life as it provides relaxation and rejuvenation. A multi-room entertainment control system allows the user to centralize all connected devices and then listen to, watch, and control that equipment from every room in the house simultaneously or independently.
Major control systems used in smart homes are audio, volume, and multimedia room controls. The growth of the market for audio, volume, and multimedia room controls is driven by the convenience offered for managing as well as controlling the entertainment systems within a house, says Research and Markets.
Advancements in wireless communication technologies are a major factor in boosting the growth of the market for home theater system controls, thereby driving the overall smart home market for entertainment controls, adds the research group. The large market share of this segment can be attributed to the high penetration rate of products such as smart meters and smoke detectors.
The increasing cost of electricity is a major concern that drives household consumers toward energy savings. Moreover, the rising popularity of smart plugs, smart hubs, and smart locks are fueling the adoption of control systems, per Research and Markets.
The increasing connectivity between machine-to-machine solutions and the Internet of Things is driving the growth of the smart home and energy management markets, which has, in turn, influenced the growth of the market for software and services for smart homes. Research and Markets says the behavioral type software and services help analyze energy-related data and forward it to end-users. This category is restricted to transmitting and receiving data and does not perform intelligent actions like the proactive type.
Behavioral type solutions provide direct feedback to end-users, thereby providing the basic information regarding the real-time energy data, along with the historical data reflecting energy usage. Therefore, behavioral type software and services are likely to hold the largest market share in 2020, says Research and Markets.