Smart Home - Worldwide

Worldwide

The Smart Home market worldwide is projected to generate a revenue of US$154.4bn in 2024.
According to forecasts, this market is expected to grow at an annual rate of 10.67% (CAGR 2024-2028), resulting in a projected market volume of US$231.6bn by 2028.
It is estimated that the number of active households in the Smart Home market will reach [users_currentlayer_yearend] by 2028.
In terms of household penetration, it is predicted to be 18.9% in 2024 and is expected to increase to 33.2% by 2028.
Currently, the average revenue per installed Smart Home market is projected to be US$365.60.
When comparing the global Smart Home market, it is evident that United States generates the highest revenue, amounting to US$38,800.0m in 2024.
In the worldwide smart home market, the United States continues to lead the way with innovative technologies and widespread adoption.

Key regions: United States, United Kingdom, Germany, Europe, Norway

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Analyst Opinion

Thus far, the Smart Home market has been faced with challenges in terms of compatibility between devices. Different ecosystems, various communication protocols, and the lack of a universal standard limit consumer options and often cause complications during installation. In light of this, the new common standard called Matter (formerly “Connected Home over IP” or “CHIP”), which is supported by 200 companies including Amazon, Apple, Google, and Samsung, presents a promising phase for Smart Home technologies. It would enable communication between all devices that use the standard, regardless of manufacturer. The first products using Matter are set to be released in late 2022, which could cause a noticeable increase in smart home adoption by 2023. At the same time, the proliferation of 5G networks worldwide will also influence the capabilities of smart home devices. 5G, the fifth generation of wireless technology, is expected to reach speeds ten to fifty times faster than current 4G networks. With it, more data can be shared between smart home devices, and these devices will be able to connect with other data-intensive applications such as 3D games, augmented reality and virtual reality, smart city technologies, and self-driving cars. The transition to 5G networks perfectly coincides with the adoption of the new Matter standard, and these two factors combined could provide a significant boost for the Smart Home market from 2023 onward.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of smart home products, excluding taxes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use the Statista Global Consumer Survey, market data from independent databases and third-party sources, and Statista interviews with market experts. In addition, we use relevant key market indicators and data from country-specific associations, such as household internet penetration and consumer spending for households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward smart home integration.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year in case market dynamics change.