The home automation market size is projected to reach US$ 135.13 billion by 2031 from US$ 59.45 billion in 2023. The market is expected to register a CAGR of 10.8% in 2023—2031. Growing home ownership and rapid urbanization in developing countries are likely to remain key home automation market trends.
The home automation market is growing at a rapid pace. The expansion of the global market is anticipated to be driven by customers' growing demand for features like interactive experiences and remote location operations provided by smart home automation. Furthermore, the growing popularity of smart assistants is anticipated to fuel market expansion. For example, Apple, Inc. introduced its second-generation HomePod with home automation-supporting capabilities and sensors in January 2023.
The term "home automation" describes the automatic and electronic management of appliances, activities, and features in a home. But, it means an individual can easily utilize the Internet to control their home's features and utilities, making life more safe and convenient while also potentially saving money on household costs.
One of the main reasons behind the rising popularity of home automation systems is the rise in homeownership. Millennials comprise the bulk of individuals purchasing new homes. Additionally, the largest demographic investing in home automation systems is the millennia. Because of this, this population segment has a very high adoption rate of home automation systems. The Greater London Authority and the US Department of Commerce provide the dwelling unit data for the US and London. The use of home automation systems in residences is quite common in these areas. Rising consumer awareness of the advantages of smart home technology and technological developments have allowed security systems to function on a larger scale, offering more convenience and flexibility along with increased customer safety.
By 2025, Central Asia and Africa will probably see an increase in urbanization and industry. As smart cities grow, emerging countries are also seeing a tremendous increase in their urban population. The concentration of urban housing development in emerging economies has led to an increase in demand for better housing infrastructure. In the end, this would result in the installation of home automation systems in recently built, contemporary housing developments.
Key segments that contributed to the derivation of the home automation market analysis are product and networking.
The geographic scope of the home automation market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. North America has dominated the home automation market. High technology adoption trends in various industries in the North American region have fuelled the growth of the home automation market. Factors such as increased adoption of digital tools and high technological spending by government agencies are expected to drive the North American home automation market growth. Moreover, a strong emphasis on research and development in the developed economies of the US and Canada is forcing the North American players to bring technologically advanced solutions into the market. In addition, the US has a large number of home automation market players who have been increasingly focusing on developing innovative solutions. All these factors contribute to the region's growth of the home automation market.
The regional trends and factors influencing the Home Automation Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Home Automation Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 59.45 Billion |
| Market Size by 2031 | US$ 135.13 Billion |
| Global CAGR (2023 - 2031) | 10.8% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Product
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Home Automation Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Home Automation Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The home automation market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
(Source: Skyworks Solutions, Inc., Press Release, 2023)
(Source: Shelly, Press Release, 2023)
The "Home Automation Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The global home automation market is expected to reach US$ 135.13 million by 2031
The key players holding majority shares in the global home automation market are Johnson Controls, Siemens, Legrand, Schneider Electric, Resideo Technologies, Inc., Snap One, LLC, ABB, Crestron Electronics, Inc., Leviton Manufacturing Co., Inc., Lutron Electronics Co., Inc.
Advent of IoT, big data, and machine learning are impacting the home automation, which is anticipated to play a significant role in the global home automation market in the coming years.
Growing millenials’s home ownership and interactive experiences offered by smart home automation are the major factors that propel the global home automation market growth.
The global home automation market was estimated to be US$ 59.45 billion in 2023 and is expected to grow at a CAGR of 10.8 % during the forecast period 2024 - 2031.