Many new homes are now being built with additional wiring and controls which are required to run advanced home automation systems. The global smart homes market was valued at around USD 24.10 billion in 2016 and is expected to reach approximately USD 53.45 billion by 2022, growing at a CAGR of slightly above 14.5 percent between 2017 and 2022.
The rising need for consumer convenience, safety, and security, energy consumption is the major driver of the smart homes market. The real estate industry is expected to spur the demand for smart homes, according to Zion Market Research. In a few regions, home automation products have reached the saturation level which is a major restraint for the smart homes market. Another factor which is hindering the market growth is its high installation cost and lack of standardization. Furthermore, low awareness of home automation is hampering the growth of the smart homes market. Nonetheless, high-end devices coupled with technologically advanced features will escalate market demand. Cloud-based solutions also provide new opportunities to impel the demand of the market. Light control is dominating the market owing to reduced electricity consumption in homes.
North America is the highest growing market across the globe followed by Europe. Some of the major companies in both regions are providing advanced services regarding the voice-driven user interface. The Asia-Pacific region is witnessing significant growth due to a number of new residential projects and strengthening of building infrastructure at a significant rate. Moreover, countries such as Japan, South Korea, and China are anticipated to contribute the highest in the near future. Developing economies in Latin America also have a potential market for the growth of the smart homes market. The Middle East and Africa are also expected to be one of the fastest growing regional markets for smart homes in the coming years.