The market for IoT smart homes is expected to experience significant growth, reaching a value of USD 417 billion by 2030 with a compound annual growth rate (CAGR) of 31.91% during the forecast period (2022-2030). This growth is being fuelled by several factors, including the increasing adoption of smart home devices, rising demand for home automation, advancements in connectivity technology, and growing awareness of energy efficiency. SkyQuest has projected that the number of connected homes worldwide will reach 30.53 billion in 2025, and global smart speaker shipments grew by 45% in Q3 2022, with Amazon and Google leading the market. This surge in connectivity and smart home adoption has driven the growth of the IoT smart home market worldwide.
According to the latest global research findings by SkyQuest, 80% of consumers who own smart home devices believe that it enhances their quality of life, while 83% believe that it saves them time. However, the research also reveals that only 33% of consumers currently utilize voice assistants to control their smart home devices, indicating significant potential for growth in this area. Furthermore, the report predicts that the smart home security market will experience a compound annual growth rate (CAGR) of 24.5% due to the increasing awareness of home security, technological advancements, and the convenience and ease of use provided by smart home security systems.
The IoT smart home market holds great importance in the present era as it offers multiple advantages to consumers, such as convenience, security, and energy efficiency. By utilizing smart home devices, individuals can remotely control various aspects of their homes, such as lighting, temperature, and security, thereby making their lives easier. Furthermore, the integration of smart home technology can lead to reduced energy consumption and advanced security measures, making it an appealing option for contemporary homeowners.
Prominent Players in IOT Smart Homes Market
- Samsung Electronics
- Honeywell International Inc.
- General Electric
- Siemens AG
- IBM Corporation
- Microsoft Corporation
- Cisco Systems Inc.
- LG Electronics
- Sony Corporation
- Panasonic Corporation
- Schneider Electric
- ABB Ltd.
- Control4 Corporation
- Crestron Electronics Inc.
Home Automation Application Segment to Drive Higher Sales as there is Increasing Demand for Automation of Various Household Activities
A recent analysis has revealed that the Home Automation Application segment has played a significant role in the rapid growth of the IoT Smart Homes market in 2021. This trend is expected to continue from 2022 to 2030, driven by the increasing demand for automation of various household activities such as lighting, temperature control, entertainment, and security. Furthermore, SkyQuest has predicted that the smart home appliances market, a sub-segment of the home automation application segment, will achieve a market size of $92.72 billion by 2027, with a compound annual growth rate (CAGR) of 13.1%.
Research analysis indicates North America is poised to become a dominant IOT Smart Homes market player from 2022 to 2030. SkyQuest has projected that the region will grow at a CAGR of 22.82% during the forecast period. The high adoption rate of advanced technologies, increasing demand for energy-efficient solutions, presence of major technology players, and growing demand for security and surveillance solutions are driving this expansion in the region. According to a report by Parks Associates, 63% of US broadband households own a security or privacy-related smart home device, such as a smart lock or security camera, highlighting the importance of these solutions in the region.
Software Type Segment to Exhibit Strong Growth due to Increasing Adoption of Cloud-Based Services and Internet of Things (IoT) Technology
The dominant type segment in the IoT Smart Homes market in 2021 was the Software segment, and it is expected to continue leading the market from 2022 to 2030. This trend is being driven by the increasing adoption of cloud-based services and Internet of Things (IoT) technology. SkyQuest has reported that 46% of US broadband households use a voice assistant to control their smart home devices, underscoring the significance of software solutions that enable voice control. The adoption of artificial intelligence (AI) and machine learning (ML) technologies is also contributing to the growth of the software segment. These technologies allow smart home systems to learn and adapt to users’ preferences, providing a more personalized experience.
The Asia Pacific region has emerged as a major force in the IoT Smart Homes market and is expected to maintain its leading position by 2030. SkyQuest has predicted significant growth in the IoT Smart Homes market for the Asia Pacific region, with a projected compound annual growth rate (CAGR) of 26.97% during the forecast period. The growing popularity of smart homes in the region is demonstrated by the fact that 77% of consumers in Asia-Pacific are aware of smart home technology. Furthermore, SkyQuest has forecasted that 65% of consumers in China intend to purchase smart home devices in the next 12 months, underscoring the high demand for smart home technology in the country.