Bergur Thormundsson
Research expert covering technology in the Nordics, AI and smart cities
Smart home - statistics & facts
Smart homes use connected devices and appliances to perform actions, tasks, and automated routines to save money, time, and energy. They are the ongoing revolution of the humble home appliance mixed with AI, robotics, and improvement in IoT technologies. AI in particular, speeding up response times and working as an automation bridge between homeowner and home is already having an impact.
The global market is expected to reach a value of almost 155 billion U.S. dollars in 2023. China has the highest ratio of smart home device owners, with more than 90% of individuals owning one or more such device. Within this giant market there are a plethora of smaller technologies being used, though all require considerable digitization and IoT connectivity in the home to function properly.
Smart thermostats, sensors, and intelligent lighting are additional products that can be integrated into smart home systems. These systems are used for energy management purposes and are taking on an increasingly important role as Europe, and other parts of the world, grapple with energy issues and the irregularities of a green transition.
The global market is expected to reach a value of almost 155 billion U.S. dollars in 2023. China has the highest ratio of smart home device owners, with more than 90% of individuals owning one or more such device. Within this giant market there are a plethora of smaller technologies being used, though all require considerable digitization and IoT connectivity in the home to function properly.
Big tech companies are major players in the smart home market
Companies including Google, Amazon, and Apple have driven the development of the smart home from conceptual to commonplace, mainly with their smart speaker products. Smart speakers from these companies are often the main connection and control hub in a smart home. China does have a strong showing among the major companies, with Haier Smart Homes producing a wealth of smart home technologies sold across the globe. It is unsurprising that the tech giants leading the AI revolution are also at the forefront of smart home development, as the latter is directly linked to the former.Smart home segments and applications
The number of smart homes is forecast to grow and surpass the 400 million mark in 2024. Smart speakers are the most widely known market segment, of which around 171 million units were shipped in 2022. The market volume is set to double by 2024. Video entertainment systems, such as smart TVs, home monitoring and security systems, and smart appliances are other major segments of the smart home market.Smart thermostats, sensors, and intelligent lighting are additional products that can be integrated into smart home systems. These systems are used for energy management purposes and are taking on an increasingly important role as Europe, and other parts of the world, grapple with energy issues and the irregularities of a green transition.
Changes not flashy but functional
The smart home market is not developing in leaps and bounds as it is not a revolutionary market shaping the global economy. However, each and every small incremental change made to existing home technologies, whether lighting or refrigeration, will have a compounding effect on the quality of life of everyday people. This makes the market interesting and stable, promising no massive returns but a gradual gain and guaranteed business.
