Global Home Automation System Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

Global Home Automation System Market Growth

The growing adoption of smart home technologies that provide greater control over security, lighting, entertainment, and heating is shaping the home automation system market landscape. A survey by Hippo in 2021 revealed that convenience (46%) was the most significant factor driving smart home device usage across different demographics. Hence, the growing demand for devices that can be easily integrated into a single ecosystem is fuelling the market.

The increasing environmental consciousness and the growing focus on sustainability are boosting the home automation system market revenue. While the European Union aims to achieve a decarbonised society by 2050, the United States and China have set goals to reduce greenhouse gas emissions by 28% and 65% by 2025 and 2032, respectively. Home automation technologies such as smart thermosets, energy monitoring tools, and smart lighting are increasingly deployed in homes to optimise energy usage and lower utility bills. A study by Finnish researchers concluded that home automation can potentially save 12.78% of original emissions.

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Global Home Automation System Market Trends

Expansion of 5G Networks

The expansion of 5G networks is propelling the home automation system market development. Reportedly, global 5G coverage, apart from mainland China, reached around 40% at the end of 2023 and is assessed to surge to nearly 80% in 2029. 5G boasts low latency and reliable and fast download speed and connectivity, enabling home automation systems to communicate more efficiently, facilitating real-time processing of data from IoT devices, and improving the performance of critical applications, including energy management, security systems, and health monitoring. Besides, 5G networks are expected to enable the integration of advanced technologies such as virtual and augmented reality (VR/AR) into smart home devices such as home health monitoring systems and home entertainment.

Global Home Automation System Market Dynamics

Growing focus on sustainability and energy efficiency

The growing focus on energy efficiency and sustainability is shaping the home automation system market trends and dynamics. Smart energy management solutions such as smart lighting systems, thermosets, and energy meters are increasingly used by homeowners to monitor and control energy usage in real time, reduce energy consumption, and lower utility bills. Moreover, there is an increasing interest in integrating battery storage, solar energy, and other renewable energy solutions into home automation systems amid the growing environmental consciousness. Such systems can also include carbon footprint trackers, offering suggestions for optimising energy consumption, using efficient appliances, and investing in renewable energy.

Global Home Automation System Market Drivers

Integration of AI and ML in Home Automation Systems

The increasing integration of artificial intelligence (AI) and machine learning (ML) in home automation systems to enhance the comfort, efficiency, and security of homes is revolutionising the home automation system market landscape. AI-enabled smart home products and assistants like Amazon Alexa, Siri, and Google Assistant are automating various operations by analysing user preferences. AI can also automate the tasks and settings of home appliances based on the preferences of users, detect any unauthorised activity and unknown movements, and automate the security process. Besides, by leveraging technologies such as predictive modelling and time series analysis, AI-driven energy management systems can forecast energy demand, adjust consumption in real time, and improve overall system responsiveness.

Market News

September 2024

ABB India introduced ABB-free@home in India, its cutting-edge and comprehensive smart home automation system with enhanced interoperability. The system is designed to improve security, comfort, and energy efficiency for the residential sector and enables users to control and integrate additional elements such as third-party devices, EV chargers, and white goods appliances.

January 2023

Shelly announced the launch of its eight new smart home automation devices, including smart home automation solutions in the Shelly Pro and Plus series. The new products launched include Shelly Plus Smoke, Shelly Blu Button1, Shelly Pro 3EM, and Shelly Plus Plugs (S, UK and IT) with enhanced API over HTTP/MQTT/UDP, enabling smooth and easy integration with home automation systems.

Global Home Automation System Market Outlook

The expansion of 5G networks is significantly driving the growth of the home automation system market. This enables more efficient communication between IoT devices, boosting applications like energy management, security, and health monitoring. Additionally, 5G is expected to facilitate the integration of advanced technologies such as virtual and augmented reality (VR/AR) into smart home systems. The growing emphasis on sustainability and energy efficiency is also shaping the market growth. Homeowners are increasingly adopting smart energy management solutions like smart lighting, thermostats, and energy meters to monitor and reduce energy consumption, lower utility bills, and integrate renewable energy sources such as solar power. Some systems even offer carbon footprint tracking and energy optimisation recommendations. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) is enhancing the functionality of home automation systems. AI-driven products, like Amazon Alexa and Google Assistant, are automating tasks based on user preferences and detecting security risks.

Global Home Automation System Market Restraints

Home automation systems require high upfront and installation costs, making them less viable to price-conscious customers. Setting up and managing such systems requires a certain amount of technical expertise, limiting their usage among less tech-savvy users. The growth of the home automation system industry can also be challenged by rising data privacy concerns and growing cybersecurity risks. Smart home devices collect a plethora of data, which raises privacy concerns and exposes them to cybersecurity vulnerabilities. Moreover, factors like economic downturn, limited internet connectivity in remote areas, and fragmented ecosystems can further limit the market expansion.

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Global Home Automation System Industry Segmentation

The EMR’s report titled “Global Home Automation System Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Managed Home Automation Systems
• Mainstream Home Automation Systems
• DIY Home Automation Systems
• Luxury (custom) Home Automation Systems

Market Breakup by Application

• Lighting Control
• Security and Access Control
• HVAC Control
• Entertainment and Other Controls

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Home Automation System Market Share

By Type Insights

Managed home automation systems are designed for homeowners who seek a fully integrated and sophisticated system that offers long-term support and customised services. Such systems provide comprehensive control, personalised benefits, and can be integrated with additional devices and technologies.

As per the home automation system market analysis, mainstream home automation systems, meanwhile, are more affordable and easier to set up than their managed counterparts. Such systems can be integrated with popular platforms such as Google Assistant, Alexa, and Apple HomeKit to enhance their flexibility and usability.

DIY (Do-It-Yourself) home automation systems are designed for easy installation and setup, require no professional help, boast affordability and flexibility, and offer integration between different devices.

By Application Insights

In home automation systems, lighting controls provide convenience, security benefits, energy savings, and enhanced comfort. They enable users to control lights from anywhere using a smartphone, computer, or app. The increasing launch of innovative smart lighting solutions is propelling the home automation system market development. In June 2023, URC launched the URC Lighting LT-3300, its all-in-one, combined smart lighting solution that enables installers to select either dimmers or switch configurations and easily programme to develop unique atmospheres for entertaining or quiet family events.

Security and access control systems include surveillance cameras, smart alarms and sensors, smart locks, motion sensors and detectors, and video doorbells and are integral to improving the safety of homes, monitoring activities, and restricting access to unauthorised individuals. Meanwhile, HVAC control systems enable homeowners to automate the regulation of air quality, temperature, and humidity within their homes.

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Global Home Automation System Market Regional Insights

North America Home Automation System Market Overview

As per the home automation system market regional analysis, the increasing popularity of IoT and the growing demand for seamless integration between different devices are aiding the market. The rising adoption of smart devices such as voice assistants, apps, and central control hubs is also driving the home automation system demand growth. As per Parks Associates, while 37% of all US broadband households own at least one smart device, and smart homes boast nearly 14 internet-connected devices. Technological advancements in machine learning and artificial intelligence (AI) are expected to aid the market development in the forecast period.

Europe Home Automation System Market Trends

The growing emphasis on sustainability in building design and construction is boosting the adoption of smart home technologies that can reduce energy costs and carbon footprints, aiding the Europe home automation system market expansion. Reportedly, in France, one in five households is equipped with at least one connected device. Similarly, as per a study by the German digital association Bitkom, almost 46% of households in Germany owned at least one smart device in 2024, up from 43% in 2022 and 37% in 2020. Furthermore, the ageing population in the region is surging the demand for home automation systems that provide health monitoring, security, and convenience. As of 2022, one in five Europeans were aged 65 years or older, and the geriatric population is estimated to constitute 30% of the European population.

Asia Pacific Home Automation System Market Growth

The home automation system demand forecast in the Asia Pacific is being driven by the increasing coverage of 5G networks. Australia, South Korea, Japan, Singapore, Taiwan, and Malaysia boast a third or more of their respective mobile subscriber bases on 5G connections. The rising awareness regarding energy efficiency is boosting the demand for smart lighting systems, thermostats, and appliances that reduce energy consumption and costs. In addition, governments in countries like Japan, China, and India are encouraging the adoption of smart homes through smart city initiatives, subsidies for energy-efficient appliances, and the development of infrastructure that supports automation.

Competitive Landscape

Key home automation system market players are leveraging advanced technologies such as the Internet of things (IoT), artificial intelligence (AI), and voice control to improve the functionality and user experience of home automation systems. They are also focusing on improving user experience and expanding interoperability by developing IoT-enabled devices and smart appliances.

Key Industry Players

Siemens Aktiengesellschaft

Siemens Aktiengesellschaft, headquartered in Munich, Germany, and established in 1966, is a global technology company that provides its solutions and services in the digitalisation, industrial automation, healthcare, mobility, smart infrastructure, and energy management sectors. The company is focused on developing sustainable, energy-efficient, comfortable, and sustainable living spaces through integration systems that offer remote control, automation, and real-time monitoring.

Honeywell International Inc

Honeywell International Inc is a company that designs, manufactures, and markets different products for a diverse range of end-use sectors, including building technologies, aerospace, and performance materials, among others. Headquartered in North Carolina, United States, and founded in 1906, the company is renowned for its expertise in control systems, automation, and smart technologies.

Schneider Electric SE

Schneider Electric SE, founded in 1836 and headquartered in Rueil-Malmaison, France, is a leader in automation and energy management solutions. Its solutions and products are used in different sectors, including building automation, energy, smart homes, industrial automation, and data centres, among others. Its products include EcoStruxure, Wiser Smart Home, and IoT-connected devices that support customers to enhance their comfort, optimise energy usage, and lower environmental impact.

Other key players in the home automation system market are ABB Ltd, Samsung Electronics, Johnson Controls Inc, and Legrand North America, LLC, among others.

Recent Developments

September 2024

Schneider Electric announced that its artificial intelligence-powered feature was live on the Wiser Home app, providing AI-optimised energy management of electric vehicle chargers and water heaters via the Wiser Home app.

May 2024

Smart Node introduced its new range of products, including an ultra-quiet curtail motor, advanced lighting solutions, and intuitive keypads, to enhance the modern home experience with efficiency and convenience.