1.Global Market size:
The U.S. stands out first in the smart home market in terms of market development and revenue. As per Statista’s Digital Market Outlook, the United States is the world’s biggest market for Smart home innovation in terms of profit and household adoption. The interest of people in the United States is growing day by day due to its usage, advantages, automation excitement, safety, and security that it provides to the customers.
Increasing mobility is one of the emerging trends for smart home marketing during the forecast period. People love to be connected with their devices at home, office, and other places. No matter where you are, you can control everything with the help of smartphones and gadgets.
Increasing customer acceptance is one of the important factors which increase the demand for smart homes in the global market. The customer identified it as very reliable, easy, safe, and efficient.
Advancement in the Internet of Things (IoT) also increases the demand for smart homes in the global market. Peoples find it easy to control and manipulate as smart home appliances are now integrated with the Internet of Things.
Researches from park associate show that the people in the USA are still not familiar with smart home innovation. Therefore, this industry has lots of potentials to grow. Some of the findings of the consumer trend are mention below:
- Less than 10% of U.S. broadband households own a smart plug or adapter module.
- 70% of U.S. broadband households stated that smart home appliances reduce energy consumption.
- 19% of U.S. broadband households plan to buy new smart home appliances in the next 12 months.
- Digitally connected and controlled devices within a house that can be remote controlled.
- Sensors, actuators, and cloud services that support automation in any way.
- Control hubs to connect sensors and actuators with remote controls and to each other.
- B2C hardware and software sales as well as subscription fees.
There are more than 4.6 million smart homes and buildings in the United States during 2017, a number that is predicted and expected to increase by up to 5 times by 2021. Technavio forecast that the Smart home market in the US to develop at a CAGR of 38.02 percent over the period 2015–2019.
- Income in the “Home Automation” sector adds up to US$ 4,908 million in 2017.
- Income in the “Smart Home” sector adds up to US$ 14,649 million in 2017.
- Revenue in the “Home Automation” sector is expected to show a good growth rate with a CAGR of 17.0 % from 2017 to 2021 and resulting in a market volume of US$ 9,206 million in 2021.
- Revenue in the “Smart Home” sector is expected to show a good growth rate with a CAGR of21.8 % from 2017 to 2021 and resulting in a market volume of US$ 32,191 million in 2021.
- The household penetration rate of the “Home Automation” sector in 2017 is at 14.9 % which is likely to grow and hit 40.1% in 2021.
- The household penetration rate of the “Smart Home” sector in 2017 is at 32.5 % which is likely to grow and hit 60.7 % in 2021.
- The average revenue per installed appliance and automation in each sector is US$ 258.09 in 2017.
- The average revenue per installed appliance and automation in each sector is US$ 492.39 in 2020.
2.4. Market growth rate prediction (2020 – 2025):
There are currently more than 47.4 million smart homes in the United States, and it is predicted that this number will be increased by up to 10 to 12 % by 2021. Statista forecast that the Smart home market in the US to develop at a CAGR of 14.9% percent over the period 2020 to 2025.
- Revenue in the “Smart Home” sector market is projected to reach US$23,328 million in 2020.
- Revenue is expected to show an annual growth rate (CAGR 2020-2025) of 14.9%, resulting in a projected market volume of US$46,767 million by 2025.
- Household penetration will be 36.6% in 2020 and is expected to hit 57.2% by 2025.
- The average revenue per installed Smart Home currently is expected to amount to US$ 492.39.
- A global comparison reveals that most revenue is generated in the United States (US$23,328 million in 2020).
2.5. COVID-19 impact on the smart home market:
The COVID-19 pandemic has seriously affected the development of the worldwide smart home industry. Worldwide sales are expected to decrease by 5-10% in this financial year, contingent on the diffusion of the infectious virus. The effect of COVID-19 is significant in business sectors, for example, the US and China relations have been adverse which results in supply chain disturbance. Due to COVID-19 lockdown, lots of manufacturing industries are shut down which badly affects the production of smart home appliances and completely disturbs the supply chain mechanism. This results in high prices and shortages of smart home appliances. Now a day it is difficult for a Smart home integrator to generate a handsome profit due to this pandemic.