A new report entitled "Smart Home Market with
Covid-19 Impact Analysis" and including a global
forecast to 2026 predicts that this sector is projected to
grow from 84.5 billion US dollars in 2021 to reach 138.9
billion dollars by 2026 at a compound annual growth
rate (CAGR) of 10.4 percent, according to research firm
Marketsandmarkets.
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Smart homes market to hit almost
139 billion dollars by 2026
The increasing number of internet
users and growing adoption of
smart devices along with growing
need for energy-saving and low
carbon emission-oriented solutions
has been crucial for increased
demand of smart home systems. In
addition to this, analysts also be-
lieve that factors such as increasing
importance of home monitoring
in remote locations and growing
concern with regards to safety,
security and convenience among
general population is driving the
growth of the smart home market.
Wireless communication
provides the boost
The entertainment and other
controls segment is expected to
account for the largest share of the
smart home market during the
forecast period. The growth of the
audio, volume, and multimedia
room control market is driven by
the convenience offered by these
controls for managing as well as
controlling entertainment systems
within a house. The advance-
ments in wireless communication
technologies are a major factor
boosting the growth of the home
theatre system control market,
thereby driving the smart home
market for entertainment control.
The market growth of the other
controls segment can be attributed
to the high demand for smart
metres and smoke detectors as
well as the increasing popularity
of smart plugs, smart hubs, and
smart locks.
Analytical behaviour data
improves efficiency
The smart home market for
software and services segment, by
type, has been sub-segmented into
behavioural and proactive type
solutions and services. The behav-
ioural type software and services
help analyse energy-related data
and forward it to the end users.
However, this category is restrict-
ed to transmitting and receiving
data and does not perform intel-
ligent actions, unlike the proactive
type. Behavioural type solutions
provide direct feedback to the end
users, providing basic informa-
tion regarding real-time energy
consumption data, along with
historical data reflecting energy
usage. Behavioural type software
and services are increasingly being
leveraged in smart homes as they
help enhance the energy efficiency
of these homes and minimize
energy bills based on behavioural
type data analysis. Behavioural
type software and services possess
the ability to learn user behaviour
and accordingly render a smarter
control of appliances, leading to
an increase in its demand. As this
type of software and algorithm
is the most widespread due to its
initial adoption and low cost, this
segment is expected to account for
a larger share of the smart home
market during the forecast period.
Indirect sales channel
dominates
The indirect sales channel segment
is expected to account for the larg-
er share of the smart home market
and is expected to grow at a higher
CAGR from 2021-2026. Indirect
sales channels or third-party ser-
vice providers hold a major share
of the smart home market. Most
players in the market have strong
sales channels and distribution
networks to provide services to
their end users. Indirect sales chan-
nels involve the sale of smart home
products through both online and
offline modes. Offline sales chan-
nels comprise third-party cellular
network carriers, wholesalers,
retailers, and value-added resellers.
Online sales channels involve sales
through e-commerce platforms.
The Covid-19 pandemic has also
resulted in a further rise in the use
of indirect sales channels in the
smart home market. Due to lock-
downs in various countries across
the world, people have started
using online mode frequently. The
demand for online channels has
increased during the pandemic.
Companies offer product setup
and installation services that help
users to buy products online
without any hesitation. Moreover,
third-party delivery providers
have started undertaking extra
precautions in order to encourage
consumers to buy without reserva-
tions of getting infected. Thus,
the online sales channel segment
is expected to grow during the
forecast period.
North America to hold
the biggest share
The researchers expect that North
America will account for the larg-
est share of the smart home market
during the forecast period. The
factors driving the smart home
market in the US include the high
per capita income, the increasing
demand for reliable home energy
management systems, enhanced
home security levels, improved
device standards, and the growing
popularity of integration of smart
devices such as tablets, smart-
phones, and standalone voice
assistants in homes are driving the
growth of the North American
smart home market. Furthermore,
this region has a strong presence
of some of the key players in the
global smart home ecosystem, such
as Honeywell, ADT, Control4,
Simplisafe, Comcast, Lutron,
Vivint, Ooma and Crestron Elec-
tronics, which has led to availabil-
ity of a wide range of smart home
offerings at economical prices.
Additionally, various grants from
the US Government towards green
energy projects are also driving the
smart home market growth in this
region.
Some of the other key and
emerging players in the smart
home market as named by the
researchers and not already
mentioned above include Siemens,
Johnson Controls, Schneider
Electric, Assa Abloy, Amazon,
Apple, ABB, Robert Bosch, Sony,
Samsung Electronics, Crestron
Electronics, LG Electronics,
Legrand, Delta Controls, Axis
Communications, Smarthome,
Armorax, and Canary.
Security Technology
Market
d e t e k t o r i n t e r n a t i o n a l · 7
The entertainment and other controls segment is expected to account for the largest share
of the smart home market during the forecast period.
Northbrook, Il (USA)
Illustration: Gerd Altmann /
Pixabay
The smart home market for software
and services segment, by type, has been
sub-segmented into behavioural and
proactive type solutions and services."
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