Home Automation System Market Research Report – Forecast to 2030

Home Automation System Market Research Report Information by Protocol & Technology (Network and wireless), By Product (Lighting, Security &Access Control, HVAC and Entertainment Control), By Software & Algorithm (Behavioural and Proactive)), And by Region (North America, Europe, Asia-Pacific, And Rest of The World) – Market Forecast Till 2030.

ID: MRFR/SEM/4624-HCR | February 2023 | Region: Global | 100 Pages         

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Global Home Automation System Market Overview:


Home Automation System Market Size was valued at USD 65200 million in 2021. The Home Automation System market industry is projected to grow from USD 72437.2 Billion in 2022 to USD 151342.20 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.72% during the forecast period (2022 - 2030). Consumer Interest in Smart Home Technology is Growing, and technology development is the key market driver enhancing market growth.

Home Automation System Market Overview
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Home Automation System Market Trends


Rising government initiatives for smart city technology and rising consumer awareness of smart homes will boost the market growth


One of the main factors influencing the adoption of home automation systems is the rise in homeownership. The vast majority of people who purchase new homes are millennials. In the U.S., millennials made up 38% of all home purchasers in March 2020, according to the National Association of REALTORS. Additionally, millennials are the demographic that invests the most in home automation technology. As a result, this population segment has a very high acceptance rate for home automation systems. Home automation systems are widely used in houses in these areas. Technological improvements and growing public awareness of the advantages of smart home technology have increased the functionality of security systems, allowing for more flexibility and convenience while also enhancing customer safety. The purchasing of home automation systems is anticipated to be constrained by the need for more homeownership among generation Z purchasers. This group is spending money on do-it-yourself, inexpensive Home Automation System solutions.


Figure 1: Number of Listed REITs (1990-2021

 Number of Listed REITs
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Growing Consumer Interest in Smart Home Technology Will Fuel the Home Automation System Expansion Market. Across many industries, smart technology is expanding exponentially. The home automation system is being explored and transformed in important ways by smart property technologies. Automation was formerly understood to mean operating equipment and appliances over internet networks. Automation is becoming smarter, though, due to the development of smart technology, including self-diagnosing gadgets, smart security, smart entertainment, sophisticated self-health care, and smart kitchens, among others. The use of smart devices to integrate cutting-edge technologies like artificial intelligence, machine learning, and the internet of things (IoT) to increase automation capabilities. Nearly 87.7 million Americans were using smart speakers in January 2020, according to a Voicebot.ai poll. Users' preferences are shifting in favor of automating tasks using voice commands, as seen by the sharp increase in smart speaker use. Similar to this, it is anticipated that the growth of the property automation market will be fueled by the increasing adoption of smart lodging functionalities such as smart T.V., light automation, face recognition doorbells, smart cookware, smart nursery, automated sprinklers, video monitoring, and more. Therefore, such factors drive the Home Automation System market revenue growth.


Home Automation System Market Segment Insights:


Home Automation System Protocol & Technology Insights


The Home Automation System market segmentation, based on Protocol & technology, includes Network and wireless. Wireless technology is expected to expand quickly during the projected period and capture the largest revenue share in Home Automation Systems. Its open technology allows for customization and supports numerous running devices at once. Wireless network connections are now a wiser choice for controlling smart property systems. Among other items, wireless networks are used by the Google Home Hub, Samsung Smart Things, and Apple HomeKit. Consequently, this element is causing the Home Automation System to flourish.


Home Automation System Product Insights


The Home Automation System market segmentation, based on Product, includes Lighting, Security and Access Control, HVAC and Entertainment Control. In 2021, the security and safety category had the lion's share in Home Automation Systems. Security and safety systems are anticipated to be driven by the rising number of smart cameras, doorbells, smoke/gas detectors, theft alarms, and more. Similarly, the demand for HVAC is rising since it provides sophisticated temperature monitoring and energy-saving options. As more lighting suppliers currently join the Home Automation System with cutting-edge lighting applications, smart lighting is predicted to have stable Home Automation System market expansion over the projection period. Additionally, as work lives become more hectic, customers' need for smart appliances is expanding will be the reason for the growth of the home automation system industry.


Figure 2: Home Automation system, by Product, 2021 & 2030 (USD Million)

Home Automation system, by Product, 2021 & 2030
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Home Automation System Software & Algorithm Insights


The home automation system market segmentation, based on Software & algorithms, includes Behavioural and Proactive. In 2021, the proactive sector had the bulk of the market. The end users of proactive Software and algorithms receive data on energy use and a greater sense of responsibility for the actions that should be taken in response to the information received. This kind may transport more data than a behavioral system. It offers the end user suggestions for efficient energy consumption, behavior, and personal preferences. The proactive type's algorithms can also compare consumption trends depending on the day of the week, previous data, and weather conditions. Therefore, such factors drive the growth of the market of Home Automation Systems.


Home Automation System Regional Insights


By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Home, Automation System market accounted for USD 28.16 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. North America Home Automation System Market has become a dominant region. The need for smart technology is driven by the Region's propensity for cutting-edge technologies like artificial intelligence and the internet of things, as well as more disposable income. Numerous firms, including Boca Raton, Sense, and CUJO AI, are growing in the area and helping the market. According to the Berg Insight research, the installation of smart property systems grew by 28.5% in North America in 2019.


Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 3: HOME AUTOMATION SYSTEM MARKET SHARE BY REGION 2021 (%)

HOME AUTOMATION SYSTEM MARKET SHARE BY REGION 2021
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Due to rising investments in smart technologies, Asia Home Automation System Market is anticipated to have substantial expansion throughout the forecast period. Due to the predominant presence of important smart device makers, China will likely control the Region's share. Due to the rising need for automated solutions, the India Home Automation System market would have a high CAGR throughout the projection period. For instance, in April 2021, Schneider Electric worked with India-based house renovator Livspace in light of the rising customer demand and to provide easy access to home solutions. Due to increased security concerns, the rapid growth of the flat residential culture driving up demand for advanced security systems, and other factors, the China Home Automation System Market is developing at the quickest rate along with India Home Automation System Market, with a CAGR of 29.1% in the worldwide home automation market.


Regarding market domination, European Home Automation System Market has lesser market penetration. Over time, the Region has seen a tremendous increase in powerful market participants. The implementation of smart lodging technology in European nations is included in various government plans due to its sustainable environmental effect and energy-efficient solution. Further, the Germany Home Automation System market held the largest market share, and the U.K. Home Automation System market was the fastest-growing market in the European Region.


Home Automation System Key Market Players & Competitive Insights


Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the home automation system industry. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. Home automation system industry competitors must provide affordable products if they want to grow and thrive in a field that is becoming more and more competitive.


Manufacturing locally to cut operating costs is one of the main business tactics used by manufacturers in the home automation system industry to benefit customers and develop the market sector. In recent years, home automation systems have brought some of the biggest advantages to medicine. The Home Automation System market major player such as Honeywell International Inc. (U.S.), Acuity Brands, Inc. (U.S.), Johnson Controls Inc. (U.S.), United Technologies Corporation (U.S.), Crestron Electronics, Inc. (U.S.), Legrand (France), Schneider Electric Se (France), Abb Ltd. (Switzerland), Samsung Electronics Co., Ltd. (South Korea), Siemens Ag (Germany), Savant Systems Llc. (U.S.), and others are working on expanding the market demand by investing in research and development activities.


Legrand is a French manufacturing company with roots in the Limousin region's Limoges. It is a leader in linked solutions for electrical and digital building infrastructures. Focal Point (US), a manufacturer of architectural lighting for non-residential buildings, was purchased by Legrand in February 2020. Legrand's position as the industry leader in lighting control solutions for both residential and commercial product offerings in the U.S. will be strengthened by this purchase.


With its headquarters in Munich and branch offices worldwide, Siemens AG is a German multinational conglomerate business and the biggest industrial manufacturing enterprise in Europe. The U.S. firm Pixeom will be acquired by Siemens, the German industrial juggernaut, for an unknown price to boost its industrial automation, digitalization division, and smart home automation.


Key Companies in the Home Automation System market include




  • Honeywell International Inc. (U.S.)




  • Acuity Brands, Inc. (U.S.)




  • Johnson Controls Inc. (U.S.)




  • United Technologies Corporation (U.S.)




  • Crestron Electronics, Inc. (U.S.)




  • Legrand (France)




  • Schneider Electric Se (France)




  • Abb Ltd. (Switzerland)




  • Samsung Electronics Co., Ltd. (South Korea)




  • Siemens Ag (Germany)




  • Savant Systems Llc. (Us)




  • Control4 Corporation (Us)




  • Amx Llc (Us)




  • Creston Electronics Inc. (Us)




Home Automation System Industry Developments




  • April 2021: The Horizon Thermostat, a touch-screen smart thermostat with a two-wire retrofit design, was introduced by Crestron Electronics. Its interaction with the Crestron Home platform provides smart automation features, including the best lighting effects for comfort, appropriateness, and energy savings.




  • March 2020: ABB Ltd. introduced the free@home flex solution, which allows users to manage blinds and lights using a mobile app and Bluetooth connection. The brand-new approach provides intelligent applications with increased energy efficiency.




  • December 2019: Resideo House app will provide whole-home monitoring for the four essential home automation services of water, air, energy, and security, according to video, which announced the app's introduction.




Home Automation System Market Segmentation:


Home Automation System Protocol & Technology Outlook




  • Network




  • Wireless




 


Home Automation System Product Outlook




  • Lighting




  • Security and Access Control




  • HVAC




  • Entertainment Control




Home Automation System Software & Algorithm Outlook




  • Behavioural




  • Proactive




Home Automation System Regional Outlook




  • North America



    • US

    • Canada






  • Europe



    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe






  • Asia-Pacific



    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific






  • Rest of the World



    • Middle East

    • Africa

    • Latin America






Report Scope:

Report Attribute/Metric Details
Market Size 2021 USD 65.2billion
Market Size 2022 USD 72.43 billion
Market Size 2030 USD 151.34 billion
Compound Annual Growth Rate (CAGR) 11.10% (2022-2030)
Base Year 2021
Market Forecast Period 2022-2030
Historical Data 2018 & 2020
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Product Type, Operating Platforms, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S, Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Honeywell International Inc. (U.S.), Acuity Brands, Inc. (U.S.), Johnson Controls Inc. (U.S.), United Technologies Corporation (U.S.), Crestron Electronics, Inc. (U.S.), Legrand (France), Schneider Electric Se (France), Abb Ltd. (Switzerland), Samsung Electronics Co., Ltd. (South Korea), Siemens Ag (Germany), Savant Systems Llc. (U.S.),
Key Market Opportunities High initial costs for home automation and a lack of knowledge about available goods
Key Market Dynamics IoT technology's rise and the pervasive usage of smartphones Technological development


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Frequently Asked Questions (FAQ) :

The Home Automation System market size was valued at USD 65.2 Billion in 2021.

The Home Automation systems market is projected to grow at a CAGR of 11.10% during the forecast period, 2022-2030.

North America Home Automation System had the largest share of the market.

The key players in the market are Honeywell international inc. (U.S.), acuity brands inc. (U.S), Johnson controls inc. (U.S.), united technologies corporation (U.S), Crestron electronics, inc. (U.S), Legrand (France), Schneider electric use (France), abb ltd. (Switzerland), Samsung electronics co., ltd. (South Korea), siemens ag (Germany), savant systems LLC. (U.S), control4, corporation (U.S), Amex LLC (U.S), Creston electronics inc. (U.S)

The wireless Home Automation System category dominated the market in 2021.

The proactive Home Automation System had the largest share of the market.