Global Smart Home Hardware Market Size, Share & Industry Trends Analysis Report By Product (IoT Hardware for Control & Connectivity Devices & Surveillance Equipment, Smart Appliances), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Smart Home Hardware Market
Market Report Description
The Global Smart Home Hardware Market size is expected to reach $48 billion by 2028, rising at a market growth of 12.5% CAGR during the forecast period.
Smart home hardware offers various advantages, including the capacity to handle all devices from a single location, increased home security, high energy efficiency, and remote control for all tasks. It can also be utilized for remote monitoring via a laptop, mobile device, or desktop computer. It is popular because it is energy efficient and can handle multiple tasks at once. The smart home hardware are driven by the increasing use of smart home devices and the rising importance of home monitoring systems. Other factors driving market demand include the rising growth of broadband and the widespread use of smartphones to manage smart devices remotely.
The gadgets that operate as the brains of a smart home system, processing, and sensing data and communicating wireless, are known as smart home hardware. It's a smart device which can connect to smart home systems, communicate with other devices, and make a decision on its own. The smart home hardware is linked to the internet, stores data in the cloud, and responds to the user's actions. Televisions, alarm systems, doorbells, speakers, and other devices and appliances are among them. Smart home devices are appropriate for a home setup in which devices may be operated remotely utilizing a mobile or other networked device from any Internet-connected location in the world. The consumer can control features such as security access, lighting, temperature, and home theater in a smart home by connecting its gadgets to the Internet.
The 'new normal,' as described by the social distancing practice, forced real estate firms and the architect ecosystem to get back to the drawing board and re-imagine residential real estate products by incorporating new-age design, innovation, and efficiency. The necessity for a whole new set of amenities has reappeared and gained relevance as the makeover takes place. In the aftermath of the COVID-19 pandemic, what the consumer would need in the 'new normal' has experienced a revolution, resulting in a paradigm shift in living environments.
COVID-19 Impact Analysis
The spread of COVID-19 pandemic has had a favorable impact on the smart home hardware market. The orders and shipments for voice control devices have increased by a significant rate. For instance, as per Xiaomi research, more than 51% of customers purchased at minimum one smart home gadget at the time of the COVID-19 pandemic. COVID-19 has thrown a wrench in everyday life, forcing individuals, organizations, and governments to rethink the policies, goals, and actions. Such advances are encouraging technical improvement and innovation. Although, in current history, the home automation industry has risen significantly, spurred in part by COVID-19 and the reality that lockout limitations have pushed individuals to invest additional time in the houses. Due to reasons like more enterprises entering the market and a growing proportion of online and internet sales, the industry has grown to include a broad range of low-cost home automation and mid-range and entry-level products.
Market Growth Factors:
Growing implementation of Internet of Things (IoT) solutions
One of the most important overall economic drivers for smart home hardware market growth is the Internet of Things platform. This IoT-based technology offers energy-saving capabilities at home. For instance, as per IoT connections will reach a significant level of multiple billion in coming years. The factor indicates that enormous clusters of devices, sensors, and objects will interact via high-speed technologies such as 5G in a few years. The market is experiencing a substantial growth in number of IoT devices. With the evolving period of time, various smart hardware devices are incorporating the solutions of the internet of things.
Huge development in technologies
The huge reach of home automation devices has occurred due to technological advancements and improved security alternatives. With the emergence of innovative wireless technologies such as ZigBee and Bluetooth, the creation of automated control systems has been simplified, and multiple standards for home automation controls, such as EnOcean and Z-wave, have expanded the flexibility of diverse components. The growth of the market is anticipated to be accelerated by growing implementation of home monitoring systems, increasing the requirement for home monitoring from remote areas, and rising consumer awareness of the comfort of smart home devices, such as lighting and automated security systems.
Marketing Restraining Factor:
Greater security risks are impeding market expansion
The growing cyber-attack in high-end connected technology is a big barrier to commercial expansion. All of the linked endpoints pose a security risk to smart home technology. As the intelligent technology is linked to each and every system and gadget in the home, hackers can obtain access to sensitive and personal data if it is not fully protected. For instance, as per Rambus Incorporated, a chip interface technology designer, developer, and licenser, a significant amount of IoT devices are prone to a range of attacks. Connecting previously standalone smart devices such as lighting, appliances, and locks raises a slew of new cyber security issues.
Based on Product, the market is segmented into IoT Hardware for Control & Connectivity Devices, IoT Hardware for Security & Surveillance Equipment, and IoT Hardware for Smart Appliances. The IoT hardware for smart appliances segment acquired a substantial revenue share in the smart home hardware market in 2021. The COVID-19 pandemic has boosted demand for smart appliances even more as most people now work from home, resulting in greater investment in smart appliances. In addition, because smart home appliances may be operated remotely, it has a significant need for IoT hardware for smart appliances, which leads to market growth.
|Market size value in 2021||USD 21.6 Billion|
|Market size forecast in 2028||USD 48 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 12.5% from 2022 to 2028|
|Number of Pages||159|
|Number of Tables||173|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Product, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia Pacific emerged as the leading region in the smart home hardware market with the largest revenue share in 2021. Smart refrigerators, washing machines, kitchen appliances, and other smart house hardware are created with technological advancements and are very inexpensive in the region, resulting in a large desire for the smart home hardware market. Moreover, in the Asia Pacific, economic growth, rapid urbanization, and a large telecom industry have raised the demand for smart home devices.
Free Valuable Insights: Global Smart Home Hardware Market size to reach USD 48 Billion by 2028
KBV Cardinal Matrix - Smart Home Hardware Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Google, LLC. are the forerunners in the Smart Home Hardware Market. Companies such as Samsung Electronics Co., Ltd., ABB Group are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Google LLC, Amazon.com, Inc., Schneider Electric SE, Honeywell International, Inc., ABB (ASEA Brown Boveri) Group, Johnson Controls International PLC, Panasonic Corporation, Legrand S.A., Samsung Electronics Co. Ltd., and General Electric (GE) Co.
Strategies Deployed in Smart Home Hardware Market
» Partnerships, Collaborations and Agreements:
- Apr-2022: Samsung Electronics came into a partnership with ABB, an industrial technology giant. This partnership aimed to unify SmartThings with ABB's free@home solutions and enable people and businesses to control the multitude of smart home devices from ABB's automation fleet with Samsung phones.
- Mar-2022: Samsung Electronics joined hands with CommScope RUCKUS, a brand of wired and wireless networking equipment and software. This collaboration aimed to allow landlords and building owners to provide better experiences to tenants and residents. In addition, the RUCKUS portfolio of converged Wi-Fi 6 and IoT access points would gain Works as a SmartThings Hub (WASH) functionality, permitting property owners to turn their apartment buildings into smart homes, and residents to link to thousands of devices over hundreds of brands.
- Nov-2021: ABB came into a partnership with Sevensense, a Swiss-based start-up. This partnership aimed to better ABB's new autonomous mobile robotics (AMR) offering with artificial intelligence (AI) and 3D vision mapping technology. In addition, this partnership would give customers unprecedented levels of flexibility as mobile robots would be able to move autonomously in complex, dynamic indoor and outdoor environments close to people.
- Aug-2021: General Electric came into a partnership with Google Cloud, a suite of cloud computing services. This partnership aimed to integrate both companies expertise to provide new smart home technologies and better experiences.
- May-2021: Johnson Control came into a partnership with DigiCert, the world's leading provider of digital certificate services and PKI solutions. This partnership aimed to deliver customers the most advanced safe, trusted interconnectivity for smart building technology. In addition, this partnership would enable Johnson Controls OpenBlue's digital solutions suite to utilize the DigiCert ONE PKI platform.
- Apr-2021: Johson Control entered into a partnership with Pelion, the connected IoT device service provider, and a subsidiary of Arm. This partnership aimed to fasten innovation in security, intelligence, and connectivity at the edge of Johnson Controls OpenBlue technology.
- Sep-2020: Google came into a partnership with Lenovo Group, a Chinese multinational technology company. This partnership aimed to resolve issues related to video conferencing with dedicated partnerships that certify the unification between software and hardware to enable hardware to have a great opportunity to succeed in demanding, real-life collaboration scenarios.
- Aug-2020: Google formed a partnership with ADT, a leading provider of security and smart home solutions. This partnership aimed to build the next generation of smart home security offerings and make a helpful smart home and unified experience for customers all over the United States.
» Acquisitions and Mergers:
- Jan-2022: Johnson Control took over FogHorn, the leading developer of Edge AI software for industrial and commercial Internet of Things (IoT) solutions. This acquisition aimed to resolve some of the world's most dynamic challenges of sustainability and energy efficiency, decarbonization, indoor air quality, and smart, secure buildings.
- Aug-2020: Johnson Control took over Qolsys, a leading commercial and residential security and smart-home manufacturer. This acquisition aimed to attain operational efficiencies and spread throughout the complete market, along with improving the suite of products and services given on the digital platform.
» Product Launches and Product Expansions:
- Dec-2021: Panasonic introduced Swidget devices, an end-to-end smart home ventilation solution as the exclusive distributor of Swidget smart controls. This product launch aimed to build a complete smart home ventilation eco-system. In addition, Swidget devices can be paired with most of Panasonic's portfolio of ventilation solutions, comprising its renowned Whisper ventilation fans and its advanced energy recovery ventilators (ERVs).
- Sep-2021: Amazon.Com introduced a home robot called Astro. This product launch aimed for the robot to look animated and friendly, with eyes, and expressive body movements that react to user engagement. Astro is equipped with a rotating screen that is mounted on a base with wheels as well as Amazon's Alexa voice assistant. In addition, Astro would set and deliver reminders, serve up entertainment like TV shows or podcasts and control smart home devices, among other tasks.
- Aug-2021: Legrand expanded its product line by including smart lighting solutions of Netatmo smart home technology in collections of designer switches and outlets. This product expansion aimed to provide the advantages of smart lighting control with unprecedented reliability and agility. In addition, with a selection of smart switches, outlets, and dimmers, the solutions would be available from both of Legrand's design-inspired collections- adorne and radiant.
- Jul-2020: ABB expanded its product line with a package of new upgrades for its successful ABB-free@home system. This product expansion included the latest ABB-free@home DALI Gateway to enable DALI lighting to be simply unified into any ABB-free@home system, without the requirement for a separate USB programming device, or additional DALI power supply.
Scope of the Study
Market Segments Covered in the Report:
- IoT Hardware for Control & Connectivity Devices
- IoT Hardware for Security & Surveillance Equipment
- IoT Hardware for Smart Appliances
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Google LLC
- Amazon.com, Inc.
- Schneider Electric SE
- Honeywell International, Inc.
- ABB (ASEA Brown Boveri) Group
- Johnson Controls International PLC
- Panasonic Corporation
- Legrand S.A.
- Samsung Electronics Co. Ltd.
- General Electric (GE) Co.
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North America Smart Home Hardware Market Report 2022-2028
Europe Smart Home Hardware Market Report 2022-2028
Asia Pacific Smart Home Hardware Market Report 2022-2028
What would be the value of the global smart home hardware market by 2028?
The smart home hardware market size is projected to reach USD 48 billion by 2028.
What are the key driving factors and challenges in the smart home hardware market?
Huge development in technologies are driving the market in coming years, however, greater security risks are impeding market expansion growth of the market.
What are the major top companies in the competitive landscape?
Google LLC, Amazon.com, Inc., Schneider Electric SE, Honeywell International, Inc., ABB (ASEA Brown Boveri) Group, Johnson Controls International PLC, Panasonic Corporation, Legrand S.A., Samsung Electronics Co. Ltd., and General Electric (GE) Co.
Which segment shows the high growth rate of the smart home hardware market over the forecast period?
The IoT Hardware for Security & Surveillance Equipment segment is showcasing a CAGR of 12.8% during (2022 - 2028).
Which segment dominated the smart home hardware market in 2021?
The Asia Pacific segment acquired maximum revenue share in the Global Smart Home Hardware Market by Region in 2021, and would continue to be a dominant market till 2028.