People love the idea of having control of everything in the palm of their hands. This desire is among the key market dynamics drivers that make up the smart home market size.
But is there more to smart homes than having that control? Apparently, there is more, and those key drivers are the reason why the global smart home market is to be valued at USD 313.95 billion. The market is growing at a CAGR of 25.3% with the forecast period of 2021 to 2026. People from North America, Europe, Asia Pacific, the Middle East, Africa, South Korea, and the rest of the world are now finding smart homes an important investment.
In this article, we’ll talk about what makes smart homes market size swell. We will tell you about the key market dynamics drivers that are helping the smart home market growth. We have done the market research for us to give you a smart homes market overview. This will help you rank higher in this sizable market. We’ll give you an idea on what is the best marketing strategy that even the major players in the market use! We hope that this will help you rank higher than your competitors in the lucrative smart homes market!
Let’s Talk About the Global Smart Home Market First
The global smart home market is set to have its comeback in 2021. This is after its decline in 2020 during the economic downturn from the COVID-19 pandemic. The global smart home market size can be due to how people come to realize that their homes need improvement, a smart improvement. They realized how important living in smart homes is. They have become interested in the software and services offered by the global smart home market. The expansion of the global smart home market size is from consumers’ interest in interactive security. They are interested in smart locks and smart home monitoring, smart lights, and smart home appliances. The global smart home market share is divided among the key regions. These regions are North America, Europe, Asia Pacific, Middle East, Africa, and South Korea. North America gains the largest market share. North America is then followed by Europe, Asia Pacific, and the rest of the world. Although North America has the largest smart home market share, Asia Pacific is deemed to become the largest smart home market towards the end of the 2020s. The smart homes market was valued at USD 22.74 billion and is expected to grow in North America. This market is growing at a CAGR of 12.18%. This is on the forecast period of 2021-2026. North America, specifically the US, will reach USD 49.98 billion at the end of the forecast period.
On the report of the competitive landscape of the global market, market growth inflates due to major players’ effort in giving advanced devices from the Internet of Things or IoT. The IoT is what encourages the growth of the smart home market. IoT brings ease, and ease is what everybody wants.
How The Internet of Things (IoT) Strengthen The Global Smart Home Market Size
The Internet of Things (IoT) is basically what allows the smart home market to give a magical experience for people who invest in home automation. The Internet of Things is defined as a network of “things” immersed together through software and services that are connected through wireless communication technologies.
Your smart home appliances such as your smart TV, smart lights, smart fridge, smart stove, smart washer, and any smart home appliances that you use every day can be accessed through your smart phone or tablet. The global smart home market thrives by using these smart “things”. These “things” make users’ lives easier and more productive by taking out minor tasks.
The key players in the smart home market will just have to continue incorporating the Internet of Things. That’s if they want to get a larger piece of that global smart home market share. According to the market analysis done on the North America Smart Homes Internet of Things Devices market, the market is expected to grow at a CAGR of 19.83. This is on the forecast period of 2020 to 2026. Market research tells us that the IoT market was valued at USD 250.72 billion in 2019.
The competitive landscape of the IoT market is made up of minor and key players who continue to innovate their products. They continue to add to the market size by helping businesses be more efficient. Efficiency makes businesses make better decisions.
So, I think it’s only fair to say that the wonders from the Internet of Things (IoT) are what brought the growth of the global smart homes market continue to balloon into billions of US dollars.
What Drives the Growth of the Smart Home Market
If you want to beat the key players in the smart homes market, you need to take a look at the smart home market overview.
When you understand the market overview, it will end up in you understanding what adds to the smart home market growth.
Proper market research will help you to apply the key market trends. Those trends will make your business in the smart home market top the major players. However, those market trends aren’t just about the adoption of smart devices to make people living in smart homes have that convenience.
It’s not just about having control over your smart home appliances anymore. It’s not about speaking to your phone as you lie on your bed to have your coffee pot turned on anymore. To get your market share, you must get as many connected devices through wireless communication technologies as you can.
Access control, HVAC control, entertainment, and security connected through wireless communication technologies has always been the symbol of the smart homes market. Today, it’s not just about comfort anymore. Now, it’s more about what one can do for their loved ones, and what’s best for the environment.
What drives the market also gives you an idea of the competitive landscape. It will give you a hint on what major players continue to work on to gain more market share.
The Key Drivers of the Smart Home Market Growth
Market research tells us that lighting control, security, and access alone won’t convince consumers to invest. Today, we spend our money on things that will impact our loved ones and the environment in a good way.
Let’s start by giving you a smart home market overview that focuses on key factors that encourage the growth of the smart home market.
Smart Homes Means More Security and Access Control
The global smart home market allows homeowners to make sure that their homes are under the best protection. Whenever they are going on a trip or when they are at work, they want their homes to be safe. Home automation allows people to check if their doors are locked, the stove is off, and nobody unauthorized is going inside their homes.
Security and access control continued to be the top features in smart homes. These features are most people invest in the smart homes market. The fact that property crime being the most committed crime can be the reason why security and access control in homes became a top priority.
Smart Homes Means An Easier Home Entertainment Control
After a rough day at work or at school, nobody wants to waste their time guessing which cable goes into what slot. People want to sit on the couch, and by pressing a single button to transform their living room into a home cinema. Thankfully, the smart home market allows them to do that.
Entertainment control is what most people integrate into their smart homes. According to the competitive landscape of the smart home market, the major players in the market are offering a limitless list of smart devices for entertainment control.
Entertainment control is extremely useful for parents. If your kids arrive home before you do, and you don’t want them turning on the TV before they’ve done their homework, you can limit the access to your entertainment system and set schedules. Also, you can see what channel your kids are watching, the websites they’re accessing, and even the video games they’re playing when you’re away on a work trip
Smart Homes Means A Smarter Way in Energy Management
As we rely more on technology, we use up more energy, needless to say. The smart homes market, despite encouraging people to rely more on technology, has become a solution for the rise in electricity use. Smart homes have energy management systems that allow homeowners and business owners to have control their energy use. The systems let them know how much their buildings use energy. This is through the software and services offered by the smart homes market.
Your smart homes can save energy through two technologies: Smart HVAC control, and Smart Lighting Control. Let’s start with HVAC control through smart thermostats.
- Smart HVAC Control
Through Smart HVAC control, homeowners and business owners can control their HVAC systems to be more efficient. The HVAC systems in your homes consume a lot of energy compared to your other home appliances. These systems take up half of your bill. With now vital these systems are for your comfort, your HVAC machines need to be on 24 hours a day. The constant use will end up in higher costs in repairs.
Thankfully, the smart homes market came up with SHEM or Smart Homes Energy Management. This technology not only cuts the costs on your monthly energy bills but also cuts the costs from repairs. The smart home market may be contributing to the world’s high electricity use, but it continues in making steps in saving the environment.
Through your smart homes, your smart HVAC control system will adjust every room’s temperature according to necessary factors. The engineers in the smart home market worked with API systems to check for weather updates, and AI systems to learn your day to day habits and count the number of people in the room.
Through your connected devices or your smart phone or tablet, you can set schedules or your smart thermostat will learn your habits. It will notify you about what they have learned from your habits, like how you arrive late on Mondays from work or how the living room is empty during Saturdays. It won’t also heat or cool a room when nobody’s is around even though there’s a schedule set.
2. Smart Lighting Control
The smart home market introduced the smart lighting control that helps smart homes save energy by detecting if the room is empty or not. When your kids forgot to turn off the kitchen lights, your smart lights will either notify you or turn off the lights automatically.
COVID-19 Made The Smart Homes Market Worthy of Consumer Money
As people are tucked inside their homes due to the COVID-19 pandemic, they have begun to see the value of living in smart homes. They know how the smart homes market can protect their families, save them money, and ultimately, making their lives more comfortable. Internet users love the experience of how Google can predict their needs, and they would love their homes to predict their needs, as well.
The Smart Home Market Helps Homeowners To Go Green
The worldwide lockdown due to the COVID-19 pandemic shut down cities that were otherwise crowded. People were amazed how the skies were no longer gray from air pollution. This amazing view made people realize how important it is to go green.
57% of consumers consider themselves conscious of how their decisions affect the environment. The smart home market sees this as an opportunity to market smart gadgets as eco-friendly products.
The smart home market offers features that allow your lights, heating and home appliances to turn on only when they’re needed. The market also provides smart meters that let homeowners track their energy use.
Younger Consumers in North America Are More Fascinated on Smart Home Market Wonders
Younger consumers are making up most of the internet users in the world. Nearly 8 out of 10 people with age from 25 to 40 years say that they think positively of the smart home market in North America. The convenience that smart homes bring through lighting control, security, access control, HVAC control, entertainment and other smart home appliances is convincing the young to live in smart homes.
In the future, investments from Millennials will likely expand not only the smart home market size in North America, but also in Asia Pacific.
Consumers Feel That Prices on Smart Home Devices Decreased
Making smart home devices less pricey is one of the goals of all key players in the global market. According to market research, affordable prices on smart devices produced by the smart home market are what made them consider investing.
Smart Homes Are Perfect for Loved Ones Who Need Healthcare
The smart home market allows families to have peace of mind that their loved ones who have physical challenges are safe in their homes. Today, the smart home market isn’t just about giving people lights that turn on with voice command, but this market is giving people back the command in their lives. Elderly people and people with disabilities can live independent lives thanks to the smart home market.
Market analysis tells us that the reason why the smart home healthcare market size continues to expand is because of the rising number of people aged 65 and above. What market research further tells us is that people are now more health-conscious, and are asking help from their smart devices for their health goals. A smart fridge that can give recipes and nutritional advice is among the key market trends.
One of the market trends in the smart home healthcare market is how this smart market is helping the hospital services market to become more efficient. Hospitals can free up beds since people can do videoconferencing in their smart homes.
As to the competitive landscape of the smart home healthcare market, the key players in this smart market are depending on products from the IoT market. Watches that can tell temperatures, and how the body of end users respond to stress. The major players are also prioritizing fall detection, heart rate monitoring, and calling emergency services when their IoT devices detect changes or are pressed by the end users.
The smart home healthcare market size expanded through wristwatches that help users track their exercise, and how their body reacts to their exercise.
What Stunts The Smart Home Market Size From Growing
This market may be growing but not enough. The smart home market may have brought a lot of good things, but the major players in this market may bring a lot of worries for the consumers.
Safe From Break-ins, Not Safe From Hackers
As people become more dependent on smart gadgets to control the security of their homes and shun the traditional lock and key, they might be lowering security instead of maximizing it. Malicious cyberattacks are one of the problems in this market. However, the major players are working with other IT companies to make the market attractive to consumers who have this concern.
Some Devices Still Cost Higher
Although the market has provided products that are with affordable prices, there are still devices that cost a lot. However, companies like Amazon and Google continue to make an effort in dealing with this issue in the market.
Not All Devices Work Well With Other Devices
The market continues to add more IoT devices to smart home systems. However, not all devices can coordinate successfully with other devices available in this market. Some consumers may take a step back if they think the device that they want won’t work with the device that they need to have in their homes.
device that they need to have in their homes.
Slow Connectivity Means Smart Gadgets Functioning Slow
Internet speed has always been a major concern in the world of technology. However, the market has this issue fixed from the start. The smart home market provides a better wireless router to make your home have better connectivity. The market also offers a Wi-Fi mesh networking system. This will provide consistency in every part of your home.
Challenges in the market are currently being fixed by the major players in this industry. The smart home market size will just continue to grow along with the IoT market. Since the IoT market continues to improve their services, this industry will continue to grow.
The Greatest Marketing Strategy for An Industry With The Largest Market Size
Sure, this global smart home market overview we have just provided might have given you a hint on how to rank higher than others in this market that might just be the largest market in the future.
However, with the demand for smart devices for smart homes rising, there would also be a rise in the number of players in this profitable market. So, your company should apply the digital marketing strategy that does wonders like this market does wonders for its customers!
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The smart home market, Internet of Things market, and the smart home healthcare market continue to expand their market size through advancing technologies. Mostly, the related reports from each market points to how improving IoT is stirring the market dynamics of every market related to home automation.
There’s not a single market that was not affected by the COVID-19 pandemic. The home automation market may have suffered from the pandemic, but the pandemic did some good, too. People now know that access control, smart locks, and lighting control keep their family from dangers, and pocket from unnecessary costs.
This market overview tells you that innovation will get you to the top. Key players from North America, Asia Pacific, and the Middle East already know how important innovation is. So, you should work with companies that offer convenience from as many IoT devices as possible.