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, according to Zion Market Research. The advanced technology has enabled various devices to be connected and controlled by one device and this technology is used by smart homes. Prominent drivers of smart home adoption are energy efficiency, home security, entertainment, convenience/productivity, remote health monitoring, and connectivity. At present many new homes are being built with the additional wiring and controls which are required to run advanced home automation systems.
With the rising need for consumer convenience, safety, and security, energy consumption is the major driver of the smart home market. The real estate industry is expected to spur the demand of the market. However, in few regions, home automation products have reached a saturation level which is the 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 about home automation is hampering the growth. Nonetheless, high-end devices coupled with technologically advanced features will escalate the demand. Cloud-based solutions also provide new opportunities to impel the demand of smart homes market. At present, North America is dominating the market. Europe is witnessing significant growth due to increased demand for home appliances. Asia-Pacific is expected to show the highest growth due to reducing constraints of the high installation cost of smart home appliances by continuous investment in R&D activities. The Asia-Pacific region is witnessing significant growth due to a number of new residential projects and efforts for strengthening building infrastructure at a significant rate. Latin America is also expected to show significant growth due to economically developing countries.