Global Smart Home Hardware Market by Product Type (Security & Surveillance, Smart Appliances, Smart Infotainment, Utility Management, and Others) and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Smart Home Hardware Overview

Smart home hardware connects a set of components designed and engineered for home automation, control, and networking. A smart home is equipped with appliances, HVAC, lighting, entertainment, smart TVs, security, and video systems all connected and capable of being remotely managed by a home-owner over a mobile device using the Internet. The primary equipment involves switches and sensors, linked to a central hub and managed by the user via a wall-mounted interface or a mobile unit linked to Internet cloud services. Smart home hardware offers a range of benefits such as security, energy efficiency, and convenience. Users can save time, money, and energy by implementing these smart home technological devices. They can also benefit from the flexibility offered by these solutions, which can be tailored to their own needs and preferences. These adaptable systems easily integrate with various devices from different sources and standards to provide seamless functionality.

Global Smart Home Hardware Market Analysis

The global smart home hardware market was $72,399.10 million in 2022 and is predicted to grow with a CAGR of 12.0%, generating a revenue of $213,571.30 million by 2032.

Source: Research Dive Analysis

COVID-19 Impact on Global Smart Home Hardware Market

COVID-19 has had a positive impact on the global smart home hardware market. The COVID-19 pandemic resulted in rapid adoption of smart devices as people transformed their living spaces into places of work, learning, and recreation. The pandemic led to an increase in awareness about health and safety. Smart home devices such as touchless smart locks, video doorbells, and voice-controlled assistants gained popularity as they reduce physical contact and enhance home security. The ability to monitor and control various aspects of the home remotely has become increasingly valuable during the pandemic. For example, during the COVID-19 pandemic, EU7 countries of France, Germany, Belgium, the UK, Italy, the Netherlands, and Spain witnessed a 24% growth in smart home hardware market sales. The COVID-19 pandemic has accelerated the adoption of smart home hardware as people seek convenience, comfort, and safety within their homes. In the post-pandemic period, the aforementioned factors are probably going to keep influencing the smart home hardware market. By including air quality monitors, touchless faucets, and health monitoring devices, smart home hardware can help with improving various aspects of daily life and enhance overall well-being. With the help of these technologies, people can keep an eye on and improve the conditions in their homes for improved health & hygiene.

Rising Awareness of Smart Home System and Automation to Drive the Market Growth

Home automation gadgets have grown in popularity due to technological developments and increased security options. The introduction of innovative wireless technologies such as ZigBee and Bluetooth have facilitated the creation of automated control systems, and different standards for home automation controls, such as EnOcean and Z-wave, have increased the versatility of diverse components. The market is expected to grow because of the increased adoption of home monitoring systems, remote monitoring demand, and consumer recognition of smart home devices' convenience like automatic security systems and lighting. This expansion can be attributed to factors such as increased awareness and acceptance of IoT and AI-based smart technologies, rising costs for energy consumption utility bills, and unattended residences when people go out. As primary drivers include increased consumer awareness about the advantages presented by utilizing innovative technology to enhance comfort levels within their homes while also ensuring lower upkeep expenditures on energy bills simultaneously increasing safety levels by being able to keep an eye on loved ones. The increasing demand for smart home gadgets such as smart speakers, thermostats, security cameras, door locks, and other connected devices contribute to the automation and control of home systems.

To know more about global smart home hardware market drivers, get in touch with our analysts here.

High Cost of Smart Home Hardware Devices to Restrain the Market Growth

The high cost of smart home hardware devices can be a significant barrier for many consumers. Price-sensitive customers may find it difficult to justify the expense of adopting smart home technology, particularly if they perceive it as an additional luxury rather than a necessity. The higher upfront cost can limit the market to a smaller segment of the population, hindering its widespread adoption. The high cost of smart home hardware can slow down market penetration and adoption rates. Consumers may delay or choose not to invest in these devices due to their higher price points, which can result in a slower rate of market growth. All these are the major factors anticipated to hamper the market revenue growth during the forecast period.

Advancements in Technology to Drive Excellent Opportunities

Smart home technology has emerged as a revolutionary in today’s quickly developing society, which has transformed the way of living and interacting with living spaces. People are actively seeking out homes with smart features, and the desire for smart home technology is no longer limited to high-end residences. Smart homes are not only handy but also contribute to a sustainable and eco-friendly lifestyle, due to the rising integration, artificial intelligence (AI) breakthroughs, touchless technology, smart thermostats, and health tech. Touchless technology has completely transformed the scope of home security. Touchless technology has significantly advanced and improved how home security systems are managed and operated by eliminating the need for physical contact or traditional manual inputs.. Touchless doorbells, for example, allow visitors to communicate their arrival without touching any shared surfaces, effectively reducing the risk of germ transmission. Furthermore, the integration of touchless technology goes well beyond simple interactions. Individuals may easily control and manage alarm system, smart door locks, access control, and other security systems using mobile apps, decreasing physical interaction, and allowing users to engage with their gadgets through their personal smartphones or tablets. These major factors are predicted to boost the smart home hardware market expansion in upcoming years.

To know more about global smart home hardware market opportunities, get in touch with our analysts here.

Global Smart Home Hardware Market Share, by Product Type, 2022

Source: Research Dive Analysis

The security & surveillance sub-segment accounted for the highest market share in 2022. Security & surveillance is a significant and rapidly growing market within the smart home hardware industry. Globally, rising crime rates are driving the security & surveillance segment growth. With rising crime rates, particularly in residential areas, consumers are increasingly focusing on safety and security measures. Households prefer smart home technologies such as smart cameras, smart alarms, and smart lockers to be safe and secure. According to house burglary statistics, 88% of all burglaries are residential, and homes without security systems have a 300% chance of theft. Furthermore, smart home security and surveillance equipment is being used in luxury villas, luxury flats, and mid-priced apartments and houses. This factor is expected to drive the segment growth during the forecast years.

Global Smart Home Hardware Market Size & Forecast, by Region, 2022-2032 ($Million)

Source: Research Dive Analysis

The North America smart home hardware market generated the highest revenue in 2022. The North America market for smart home hardware is developing due to factors like rising awareness, technological improvements, and supportive governmental initiatives. North America is a major market for the adoption of smart home hardware systems. North American countries have implemented initiatives and regulations to promote energy efficiency and sustainability, which align with goal of the smart home concept to enhance energy efficiency, reduce environmental impact, and promote sustainable living practices. For instance, in 2021, the U.S. Department of Energy (DOE), in collaboration with Lawrence Berkeley National Laboratory and the Brattle Group, created A National Roadmap for Grid-Interactive Efficient Buildings. The roadmap describes DOE's national target of tripling energy efficiency and demand flexibility in the building sector by 2030, compared to 2020 levels. Manufacturers and innovators in the region are constantly introducing new and improved smart home devices with advanced features. These devices often leverage cutting-edge technologies such as artificial intelligence, machine learning, voice control, and connectivity standards like Wi-Fi and Bluetooth. All these factors are projected to drive the regional market growth in the future.

Competitive Scenario in the Global Smart Home Hardware Market

Investment and agreement are common strategies followed by major market players. For instance, in June 2023, Eve Systems GmbH, a Munich-based producer of smart home solutions with operations in Europe and the U.S., has been acquired by ABB. The acquisition aims to establish ABB as a leader in smart home solutions based on Matter and Thread, the next interoperable standard and wireless networking technology. Through Eve's expanded complementary line of consumer-facing solutions targeted to the retrofit market, the combined solution will speed ABB's delivery of safe, smart, and energy-efficient homes and buildings.

Source: Research Dive Analysis

Some of the leading smart home hardware market players are Google LLC (Alphabet), HONEYWELL CORPORATION, INC., Amazon.com Inc., Schneider Electric SE., Johnson Controls International plc, ABB Ltd., Legrand SA, Panasonic Corporation, Samsung Electronics Co Ltd, and General Electric.