According to the Fortune Business Insights report “Home Automation Market Size, Share and COVID-19 Impact Analysis, By Component (Product and Services), By Network Technology (Wired, Wireless and Power Line-Based), and Regional Forecast, 2021-2028“, the global home automation market size stood at USD 64.58 Billion in 2020 and is projected to reach USD 163.24 Billion by 2028, exhibiting a CAGR of 12.3% in the forecast period.
Customer’s Growing Interest in Smart Home Technology to Drive Market Growth
Smart technology is growing exponentially across industries. Smart property technology is significantly exploring and transforming the home automation system. Earlier, automation was signified as controlling devices and appliances through internet networks. However, with the introduction of smart technology such as self-diagnosing devices, smart security, smart entertainment, advanced self-health care, smart kitchen among others, automation is getting smarter.
The integration of advanced technologies such as the internet of things (IoT), artificial intelligence, machine learning, and more through smart devices to drive the automation capabilities. As per the Voicebot.ai survey, in January 2020, nearly 87.7 million U.S. customers were using smart speakers. This significant rise in the adoption of smart speakers indicates users’ shifts towards automating the operation through voice commands. Similarly, the increasing implementation of smart lodging functionalities such as smart TV, light automation, face recognition doorbells, smart cookware, smart nursery, automated sprinklers, video monitoring, and more are expected to drive the property automation market growth.
Expensive Products and Limited Clarity Regarding Technology to Hamper Market Growth
The automation products, tools, and appliances are expensive. Users with limited disposable income find it difficult to relate to the automation solution and to its necessity. Owing to this high cost, it is being adopted by certain groups in the market. Also, currently, the prices of smart devices are on a higher end in the market. Further, this cost barrier is expected to be witnessed in developing countries in comparison with the advanced ones. This is likely to barricade its mass adoption. Similarly, these users are unclear regarding its application, usage, and overall benefits. The maximum of users majorly using it for entertainment and voice commanding purposes. Thus, the complicated techniques and applications are expected to hamper the market growth.
Increasing Innovative Smart Devices to Boost Product Share
On the basis of components, the market is split into products and services. The product is further classified into security and safety, HVAC, wellness monitoring, smart appliances, smart entertainment, smart lighting system, and others.
Similarly, services are categorized into consulting, installation or implementation, and support and maintenance.
Product is expected to dominate the market segmentation share and is also projected to grow at highest CAGR owing to the increasing development and production of smart home tools and devices. Key players are offering such innovative product portfolios to improve and enhance the systems.
Amongst products, security and safety are expected to gain maximum segment share as it helps in remotely monitoring solutions. The increasing number of smart cameras, doorbells, smoke/gas detectors, theft alarms and more are likely to drive security and safety systems. Similarly, the demand for HVAC is growing as it offers smart monitoring of climate along with energy-efficient solutions. Smart lighting is anticipated to gain steady growth of the market during the forecast period as many lighting providers are now entering the automation market with innovative lighting applications. Also, with the growing tight schedule of professional life, the demand for smart appliances is increasing among the consumers.
Services are expected to grow steadily. The complexity and highly technical smart system is expected to drive installation or implementation demand. Similarly, support and maintenance are to gain demand to upkeep the smart devices and their connection.