Home Automation Market Size, Analysis, Share & Forecast 2031

Report Description

Home Automation Market Outlook

The Home Automation Market size was USD 45.60 Billion in 2022 and is likely to reach USD 112.92 Billion by 2031, expanding at a CAGR of 10.6% during 2023 - 2031. Rising urbanization and growing disposable income are propelling the global home automation market.

Home automation is a network of electronic interfaces, hardware, and communication that integrates everyday devices with each another using the internet. Each device has sensors that are connected through Wi-Fi and manageable with a smartphone or tablet whether the person is at home or miles away. The home automation system is used in a wide range of applications such as lighting control, outdoor lawn irrigation, HVAC, security systems, and kitchen appliances.

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It offers benefits to the user by managing all home devices from one place or at per user’s convenience, providing home management insights and remote-control home functions, improving appliance functionality, providing flexibility for new devices by maximizing home security, and increasing energy efficiency. Home automation system combines software and hardware via a wireless network to control home appliances and electronics through one device. 

Home Automation Market Trends, Drivers, Restraints, and Opportunities:

• Rising standard of living associated with changing preferences for an elegant and luxurious lifestyle among consumers is boosting the home automation market. 
• Growing adoption of the Internet of Things (IoT), connected devices, and cloud-based solution in smart home appliances are fueling the market. 
• Rising electricity prices and increasing awareness for energy-efficient solutions are driving the home automation market.
• Increasing concern related to safety and security among customers is propelling the market.   
• High cost associated with an initial investment in a wireless security system, and lack of awareness about home automation products and services are hindering the market. 
• Increasing government investments in smart city projects, which aim to increase the production of home automation solutions by various companies. Hence, creating opportunities for the market to grow.    

Scope of Home Automation Market Report

The market report includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Home Automation Market Segment Insights

In terms of product, the home automation market is segmented into luxury, mainstream, managed, and DIY (Do It Yourself). The managed segment is expected to hold a significant share of the market during the forecast period. The managed products for home automation involve pre-packaged solutions offered by telecom service providers.

Moreover, the managed system provides an end-to-end monitoring, control, and energy management service, which is expected to fuel the segment during the forecast period.

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Based on networking technology, the home automation market is bifurcated into wired and wireless. The wireless segment constituted a significant share of the market and is projected to expand at a rapid rate during the forecast period, due to the wireless control module. The wireless system is much smoother and better than retrofit purposes than the wired one. Additionally, a wireless home automation system is inexpensive, due to less equipment being used as compared to wired home automation systems.

On the basis of management, the market is segregated in-premise and cloud-based. The on-premises segment is expected to hold a significant share of the market during the forecast period, owing to the accompaniment of a central hub for controlling lighting, HVAC, and thermostat systems at home. Moreover, growing demand for home automation systems to control the number of devices from a single source is anticipated to fuel the segment in the forecast period.

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In terms of software & algorithm, the home automation market is segregated into behavioral and proactive. The behavioral segment is expected to hold a significant share of the market during the forecast period, due to the development of technically advanced and user-friendly software solutions. Additionally, behavioral software provides real-time services to the customer by reducing energy consumption within households, which is expected to boost the segment during the forecast period.

Based on application, the market is fragmented into safety & security, lighting, entertainment, heating, ventilation & air conditioning, and others. The entertainment segment is sub-segmented into audio & video. The lighting segment is expected to hold a significant share of the market during the forecast period, due to the rising adoption of wireless technology, and penetration of improved lighting systems. Moreover, growing adoption of the Internet of things and cloud-based renewable energy solutions reduce energy consumption by integrating lighting products. These factors are anticipated to propel the segment in the coming years.

In terms of region, the global home automation market is split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America constituted a significant share of the market in 2020, due to mergers & acquisitions conducted by key market players & IT companies. The market in North America is projected to expand at a significant CAGR during the forecast period, due to growing deployments in the Internet of Things (IoT)- and artificial intelligence (AI)-based home automation solutions.

Increasing consumer investments for the deployment of safety and security solutions and a growing number of smart home automation in countries such as the US, Canada, and Mexico are propelling the home automation market in North America. 

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