- Wireless smart home devices market is projected to grow at a CAGR of 23.5 percent in the next five years.
- Smart home technology is more applicable among residential end-users
- North America dominated the global smart home market in 2018
The global smart home market, which was valued at US$ 38,649.3 million in 2018, is projected to reach US$ 170,162.9 million by 2025, according to a new report by Orbis Research.
Positive impact on businesses of smart device manufacturers and booming concept of Internet of Things have bolstered the growth of global smart home technology market, the report revealed.
In 2018, smart appliances dominated the global smart home market with a maximum share in terms of revenue. Based on Orbis Research estimation, the segment occupied a healthy share of 23.7 percent share. Increasing demand for consumer electronics is expected to help the respective segment to grow at a faster rate of 25 percent during the forecast period (2019-2025).
Wireless smart home devices market generated a revenue of US$ 32,462.5 million in 2018 and is projected to grow at a CAGR of 23.5 percent during the forecast period.
In addition, Wi-Fi technology application in smart home held 61.7 percent share and garnered revenue of US$20,016.3 million in 2018. While Ethernet wired connection occupied largest share in the respective technology last year, wired connection is expected to showcase remarkable compound growth of 26.2 percent in the coming years.
Residential end-users to maintain its dominance
Based on end-users, global smart home market is segmented into residential and commercial end-users. In 2018, smart home technology was more applicable among residential end-users. The segment dominated the market and is expected to maintain its dominance throughout the analyzed period.
Among commercial end-users, smart home technology application was majorly prominent among hospitals. Based on estimation, the respective segment is projected to generate revenue of US$ 27,645.2 million by 2025 displaying tremendous CAGR of 24.8 percent during the forecast period.
North America leading the market
Based on estimation, North America dominated the global smart home market, with more than 51.5 percent share in 2018. Europe and Asia Pacific followed North America with 25 percent and 19.2 percent shares respectively in 2018.
According to the report, strong competitiveness, flourishing IoT, spur in product development, R&D activities and dramatic uptake of technological advancements, investments by major peers, rising consumer awareness, spur in smartphone penetration have being significantly contributing in prospering the market size of smart home technology.
However, it noted that concerns regarding privacy and hacking, high cost involved in complex installation and high prices of smart home devices have to be addressed globally to experience the never-ending growth of smart home market.