Automated Homes Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the automated homes market was valued at USD 45.5 billion in 2022, and a CAGR of 9.7% is expected during the forecast period. Home automation refers to the automation and security of homes and household activities. Home automation describes a system in which light, electric appliances, and heating and cooling systems are connected to a remotely accessible network.

Increasing demand for power savings and enhancing the life standards is driving growth in the market significantly. It consists of a hub connected to smart devices and sensors that enables consumers to access their home remotely and efficiently.

Growth Drivers

Increasing demand for security and growing home ownership among millennials worldwide are driving growth in the market. An increasing number of millennials all over the world is driving the demand in the automated home market. The proliferation of IoT devices is a major driver. Smart thermostats, lights, security cameras, and home assistants are becoming more common, making it easier for consumers to automate their homes. Increasing demand for energy efficiency, convenience security, and the ability to control home devices remotely.

This growing awareness is translating into higher demand. Advances in artificial intelligence, machine learning, and cloud computing are making home automation systems more efficient and user-friendly. With mature technology, the costs of automated home devices and systems are decreasing, making them more accessible to a wider range of consumers. The ability to integrate different devices and systems into a unified smart home eco-system is becoming easier and encouraging more consumers.

Increased focus on home security and a growing number of smart home platforms are driving competition and innovation in the market. The rise of remote work has led to more investment in home infrastructure, including automated systems that make home offices more comfortable and efficient. The rollout of the 5G network to enhance the capabilities of home automation systems is driving growth in the market significantly.

Segmentation

By Management

·         On Premise

·         Cloud-Based

By Software and Algorithm

·         Behavioral

·         Proactive

By Product

·         Lightning Control

·         Security and Access control

·         HVAC Control

·         Entertainment and Other Controls

·         Impact of Covid-19 on home automation

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Automated Homes Market by Management

On the basis of the management, the automated homes market is segmented into on-premise and cloud-based. The cloud-based segment is the leading segment in the market due to scalability and flexibility. This flexibility allows homeowners to integrate new technologies without major infrastructure changes. A cloud-based system allows users to monitor and control their smart home devices remotely. Whether it’s adjusting the thermostat, checking security cameras, or managing lighting, users do it from anywhere, via a smartphone or web interface.

Cloud computing enables the processing of large amounts of data collected from various smart home devices. This data is analyzed to provide personalized experience, optimize energy use, and improve security through AI-driven insights. Cloud-based systems update and maintain more easily than on-premise solutions. It ensures that smart home systems are always up-to-date with the latest features and security patches without requiring user intervention. Many cloud-based smart homes solutions are designed to work with a wide range of devices and ecosystems. Cost efficiency and improved security are the key reasons behind the growth in the market significantly.

Regional Outlook

On the basis of the regions, the Automated Homes Market is segmented into 5 regions: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. North America is the leading segment and is expected to drive the growth in the market significantly. Increasing disposable income in the region and technological advancement in the region are driving growth in the market significantly. North Americans, especially in the United States and Canada, have shown a strong interest in smart home technologies. There is a high level of awareness about the benefits of home automation, such as convenience, security, energy, and efficiency.

The region boasts a well-established and advanced technological infrastructure, including widespread high-speed internet access and a strong mobile network. North America is home to some of the largest technology companies in the world, such as Google, Amazon, Apple, and Microsoft. These companies are heavily investing in smart home technologies, driving innovation and adoption across the region. Consumers in North America generally have higher disposable income, allowing them to invest them in smart home devices and systems.

Major retailers in the region, like Best Buy and Amazon, have extensive networks and platforms for promoting and selling smart home products. Shift towards remote work, particularly after the pandemic, has led to an increased focus on home improvement, including smart home technologies that enhance comfort, convenience, and productivity in the home environment. The high rate of home ownership in North America provides a large number of home automation products. Homeowners are more likely to invest in long-term automation solutions compared to renters. Growing focus on energy efficiency and sustainability in North America is helping in reducing the energy efficiency. Increasing demand for home security systems is a driving force in the region.

Asia Pacific is another leading segment due to rising disposable income, increasing population, and rising urbanization. Countries like China, Japan, India, and South Korea are witnessing growth due to rapid urbanization. Increasing investment in smart city initiatives is driving the demand in the market significantly. The region has a rapidly increasing middle-class population, with increasing disposable income. As more consumers attain high purchasing power, there is a growing demand for smart home technologies that offer convenience, security, and energy efficiency.

The region is a global hub for electronics manufacturing, with countries like China, South Korea, and Japan leading in the production of the IoT devices. Proliferation of high-speed internet and widespread smart-phone usage across the region has made it easier for consumers to adopt and control smart home devices. Improved connectivity is a crucial enabler for the growth of automated homes. Governments in the Asia-Pacific region are increasingly promoting the adoption of smart technologies as part of their economic development strategies. Many countries in the region are prioritizing energy efficiency and sustainability. Often driven by concerns about energy efficiency.

Key Players

·         Resideo

·         Legrand

·         Schneider Electrics

·         Johnson Controls

·         Siemens

·         Other Players