Smart Home Hardware Market Size is Projected to Generate a Revenue of $213,571.3 Million by 2032Download Sample Reports Overview
The Global Smart Home Hardware Market is predicted to be valued at $213,571.3 million by 2032, surging from $72,399.1 million in 2022, at a CAGR of 12.0%.
Impact Analysis of COVID-19 on the Smart Home Hardware Market
The COVID-19 pandemic disrupted global supply chains, leading to delays in manufacturing, shortages of components, and logistical challenges. These disruptions have affected the production and availability of smart home hardware, leading to supply constraints and increased prices. The pandemic intensified concerns about health and safety. Smart home appliances like touchless smart locks, video doorbells, and voice-controlled assistants have become increasingly popular as they minimize physical contact and improve home security. The pandemic has impacted the market for smart home hardware as work from home jobs and remote employment became more common. The demand for smart devices, security systems, and entertainment gadgets has increased as consumers looked for methods to make their homes more cozy, safe, and convenient.
Consumers are accepting the concept of a connected lifestyle, searching for methods to make their lives more convenient, pleasant, and secure, particularly in the post-COVID period. For instance, a survey conducted in 2021 found that 70% of respondents changed their living environment in response to spending more time at home. Furthermore, 51% of people bought at least one smart home gadget during this period, demonstrating an increasing tendency towards smart home technology as a result of the pandemic's impact.
Global Smart Home Hardware Market Analysis
The smart home hardware market experienced a significant boost due to the widespread use of voice assistants like Amazon Alexa, Google Assistant, and Apple Siri. By serving as central control hubs for various devices in the house, these voice-controlled assistants offer users greater convenience and ease of interaction. Voice assistants act as central hubs that facilitate the integration and interoperability of different smart home devices and platforms. Manufacturers can develop voice assistant-compatible smart home hardware, allowing users to control and manage multiple devices through a unified voice interface. Interoperability is critical in increasing the environment of compatible devices within smart homes. It refers to the ability of various gadgets and technologies to communicate, interact, and function together in unity.. Voice assistants provide smart home hardware developers with the opportunity to create and integrate third-party skills or applications. These skills enhance the capabilities of voice assistants, enabling users to perform specific tasks or access additional services. For example, users can use voice commands to order food delivery, request rideshare services, or interact with their favorite news or productivity apps.
Setting up and configuring smart home systems can be complex, especially for users who are not tech-savvy. Complicated installation processes and network connectivity issues can discourage adoption and create frustration among consumers. Many consumers are still unaware of the benefits and capabilities of smart home technologies. Lack of awareness and understanding about these products and their potential impact on energy savings, convenience, and security is expected to impede market growth. Some consumers may be resistant to adopting new technologies and changing their habits. The perceived complexity, lack of familiarity, or uncertainty about the benefits of smart home devices can discourage potential users from adopting these technologies.
The smart home hardware market is expanding due to the cloud's impact on the industry. By integrating with cloud resources, smart home devices can overcome limitations in areas such as storage, communication capabilities, processing power, and peak demand scenarios. In addition, the robust backup and recovery functionalities of the cloud provide better security and reliability for smart home systems. Smart home hardware manufacturers can enhance their product offerings by utilizing cloud technology. This integration enables seamless connectivity, scalability, and flexibility for users. Homeowners can effortlessly monitor and manage their properties from anywhere using centralized control provided by cloud services.
Global Smart Home Hardware Market, Segmentation
The smart home hardware market is segmented on the basis of product type and region.
The product type segment is classified into security & surveillance, smart appliances, smart infotainment, utility management, and others. Among these, the utility management sub-segment is anticipated to be the fastest growing during the forecast period. The utility management system is an intelligent network control system based on a smart grid, smart house, and smart meters. It combines power generation, consumption, and energy storage devices into a single management and control system. Smart home utility management systems can improve the efficiency of residential renewable energy while also saving consumer’s money on their electricity bills. For instance, in May 2021, Robert Bosch Energy and Business Solutions launched an artificial intelligence based energy management platform called Phantom Edge, which is capable of providing real-time energy consumption, electrical parameters, operating usage, and appliance level information to users.
The smart home hardware market in Asia-Pacific is projected to show the fastest growth during the forecast period. The increasing disposable incomes of the Asian population and the rising living standards are factors likely to drive the market growth. Also, the desire for change such as inclination and willingness to adopt new technologies and upgradation of homes with smart devices and systems among consumers is the primary driver of the smart home hardware market. The key factor impacting demand for smart homes is the increased desire for energy-efficient lighting and security solutions. Through strategic alliances and partnerships, companies such as Google, Amazon, Samsung, Haier, and Xiaomi have a strong presence in the smart home industry. Collaboration among Internet firms, smartphone companies, appliance companies, and even real estate companies is an important factor driving the regional market expansion.
Key Players in the Global Smart Home Hardware Market
Some of the leading smart home hardware market players are
- Google LLC (Alphabet)
- Honeywell Corporation Inc.
- Amazon.com Inc.
- Schneider Electric SE.
- Johnson Controls International plc
- ABB Ltd.
- Legrand SA
- Panasonic Corporation
- Samsung Electronics Co Ltd
- General Electric