The market for smart homes was valued at US$54.97 billion in 2016 and is expected to grow 13.61% annually between 2017 and 2023, according to a report by Research and Markets.
The key drivers contributing to the growth of this market include significant advancements in the IoT market; increasing need of the consumer for convenience, safety, and security; and rising need for energy saving and low carbon emission-oriented solutions.
The smart home market, on the basis of product, has been segmented into lighting control, security & access control, HVAC control, entertainment & other controls, home healthcare, smart kitchen, and home appliances.
Lighting control held the largest share of the smart home in 2016. The growth of this market can be attributed to the capability of lighting control to reduce electricity consumption in homes as the sensors adjust the intensity of artificial light according to the intensity of natural light.
Entertainment has become an important part of life as it provides relaxation and rejuvenation. The most important feature of entertainment control is the ability to integrate multi-room entertainment systems. The major controls used to control and regulate the entertainment systems in smart homes are audio, volume, and multimedia room controls.
The growth of the market for audio, volume, & multimedia room controls is driven by the convenience offered by these controls for managing as well controlling the entertainment systems within a house. The advancements in wireless communication technologies is a major factor boosting the growth of the market for home theater system controls, thereby driving the overall market for entertainment controls.
North America held the largest share of the global smart home market in 2016, owing to the factors such as increasing demand for reliable home energy management systems, enhanced home security levels, and growing popularity of integration of smart devices such as tablets and smartphones in smart home solutions.