ID: MRFR/SEM/7198-CR | December 2019 | Region: Global | 353 pages
Smart Home and Office Market Overview
The smart home and office market has been gaining huge momentum and demand since the historic forecast period that ended in 2019. Similar trends are expected to follow and emerge for the market in the current forecast period of 2019-2025 which are anticipated to help the market grow at a 14.01% CAGR during the period that will end in 2025. During this period, the smart home and office market is expected to reach a final market valuation worth USD 92.18 Billion globally.
Smart home and office devices are witnessing a huge demand because these devices promise to win and develop the user’s trust, reliability, safety, and security as a trending concept and also, offers to enhance the overall look and vibe of the place where the market services and devices are used and installed. Also, the population belonging to the developed economies functioning on a global scale are witnessing an increased income of people which is converting them into target audience owing to the developed interest in the market’s devices and services. The industry had struggled initially but the changing market preferences have resulted in a shift of customer taste and preference towards automated products the derive and implement the best use of technology thus empowering the customers and helping the market expand its size during the ongoing forecast period that ends in 2025.
COVID 19 Analysis
Since the pandemic has hit the lives of people, many industries and corporate verticals are experiencing a severe impact of the pandemic and the attached complexities. As far as the smart home industry is concerned, due to the trends and preferences introduced by the pandemic, the global market has experienced a considerable decline of 5-10% in the sales quantum for the fiscal year, which is largely dependent on the positive rate of transmission of the disease, thus, infecting people on a large scale. The impact has adversely affected the countries belonging to the APAC region like India and China which have harmed the supply chain mechanism of the global market as well. There are no new construction processes on the way and the temporary lockdown governing the manufacturing and production units are adding to the misery.
However, the impact of the pandemic is short-term. The major mushrooming regions across the globe like the North American region alongside the APAC region are expected to witness a good growth graph for the smart home and office market services and expansion for the upcoming period of 2019-2025. The rising investments are likely to bar the limited adoption of smart home and office systems by introducing features that have a positive run-through of ease and convenience for the target audience. The governments functioning across the global regions are also intervening by increasing their investment and rolling schemes to back these markets and their offerings for global growth during the period ending in 2025.
The Internet of things (IoT) is a recent concept that is enjoying huge limelight and popularity, especially amongst the residential audience and consumers. This concept offers connecting the household products with the help of a reliable internet connection. The connected products, algorithms, end-users, and services are enabling a smooth data flow and help in making and implementing better real-time decisions. Also, the smart home and office market services are known to provide efficiency and offer a high degree of enhanced quality, efficiency, and consistency of the automation systems. All these factors are likely to promise an excellent demand across applications like HVAC, healthcare and medical services, media and entertainment sector, lighting, and security amongst others.
However, the shipment of devices that form a vital part of the market operations and convenience offered, is a matter of concern. Consumers have a higher preference for market products that have a high degree of convenience and energy efficiency but the overall concept of home automation is pretty new for the target audience that is located in regions like APAC and the rest of the world. Also, if the products need to be switched, the associated cost with the same is high and hence, replacement is not a very dependable option considered by the smart home and office market audience during the forecast period ending in 2025. The smart home and office market has a good penetration rate but is expecting a slow pace of growth as the concept is still in the rising phase in most of the mushrooming regions across the globe.
The products offered by the smart home and office market can be used both independently and in an integrated form. Also, the home automation systems run with the help of wired and wireless technologies that enable the market devices like light controllers to be integrated externally with the proper establishment of communication protocols. The products that form major market components are being manufactured with inbuilt data connectivity that has positive attributes in-store for the running market operations and expansion during the forecast period that ends in 2025.
The smart home and office market has been segmented based on the following:
Software and service
Based on the demand pouring in from various global regions, the smart home and office market share are likely to expand the maximum with the highest CAGR in the APAC region. The smart home and office market is witnessing the emergence of factors like strong economic growth and presence, a substantial increase in population, and demand of the people to lead a better life and witness an improvised standard of living. Also, rapid urbanization across various regional markets under the global market tag is helping the region to compete and perform its best in the international market during the forecast period that ends in 2025.
To help the market investors understand the competitive degree prevailing, it is better to know the functional market players. The prominent players in smart home and office market functioning as a part of the global market are as follows:
The smart home and office market report helps in providing a detailed view of the market functions and the dynamics like drivers and restraints that will help the market grow as per the expected CAGR and reach the predicted market valuation by the end of the forecast period in 2025. The smart home and office market report discusses the potential of the market segments and players that are majorly responsible for the growth of the market services or a declined demand. Also, the report helps in discussing the strategies for growth undertaken by the market players to enjoy dominance during the forecast period of 2019-2025.
Frequently Asked Questions (FAQ) :
The market value by 2025 is expected to be USD 92.18 Billion.
Smart homes are generally equipped with Internet-connected devices to control, automate and optimize functions like lighting, temperature, entertainment and security. These devices are mostly remotely monitored, controlled, and accessed by a computer, tablet, phone, or a separate system.
Mounting need for energy-efficient buildings, increasing concerns with regard to security, safety and public convenience coupled with the rising ownership of internet-enabled smart devices can be accounted for the market growth across the globe.
Rising integration with 5G technology combined with the surge in favorable government regulations pertaining to green building initiatives can be the top growth opportunities in the market.
Surging number of government initiatives that support smart lighting systems offices and residencies and the rising need for energy-efficient buildings are the factors are responsible for North America’s dominance in the market.
6. Based on products, which segment can take the lead in the global market?
In September 2019, ABB came up with a set of new solutions for smart homes, which included ABB-secure@home. It is an intrusion and alarm system that are most used in residential properties.