What Transformation Has the Home Automation Market Undergone?
The home automation market has seen considerable growth due to a variety of factors.
• In recent times, the home automation market has shown robust growth. The market, valued at $71.19 billion in 2024, is projected to increase to $77.65 billion in 2025, corresponding to a compound annual growth rate (CAGR) of 9.1%.
The notable growth during the historical phase is largely due to factors such as increased consumer consciousness, the convenience and time efficiency it provides, concerns over energy proficiency, heightened attention to health and wellness, and improved data privacy.
How Will The Home Automation Market Size Evolve In The Foreseeable Future?
The home automation market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the home automation market is projected to experience swift expansion, reaching an estimated value of $123.88 billion in 2029, with a compound annual growth rate (CAGR) of 12.4%.
This growth in the predicted period can be ascribed to various factors including the emphasis on sustainable and green homes, health and wellness tracking, customization and personalization, and do-it-yourself home automation kits. The projected period will also witness major trends such as the surge of smart hubs and ecosystems, the spread of IoT devices, security and surveillance solutions, health and wellness tracking, customization and personalization, as well as DIY installations and configurations.
Which Key Drivers Are Propelling The Home Automation Market's Growth?
The growth of the home automation market is poised to be fueled by the rising adoption of internet of things (IoT) devices in home automation systems during the forecast period. Home automation systems reliant on the Internet of Things utilize internet protocols or cloud computing to control every aspect of a smart home. These IoT-driven systems present numerous benefits over their wired counterparts, among them flexibility, simplicity in installation, the ability to avoid complex wiring issues, efficient issue detection and triggering, and most importantly, mobility. In light of data from Exploding Topics, a US-based digital platform that offers insights into new and trending subjects, it is projected that by 2030, there will be 25.4 billion IoT devices. Thus, the upward trend in the utilization of IoT devices in home automation systems serves as a key driver for the expansion of the home automation market.
What Are The Key Segments Within The Global Home Automation Market?
The home automation market covered in this report is segmented –
1) By Product: Lighting Control, Security And Access Control, HVAC Control, Entertainment, Other Products
2) By Technology: Wired Home Automation System, Wireless Home Automation System
3) By End User: Residential, Commercial, Other End Users
Subsegments:
1) By Lighting Control: Smart Bulbs, Lighting Sensors, Dimmers And Switches,
2) By Security And Access Control: Smart Locks, Surveillance Cameras, Alarm Systems,
3) By HVAC Control: Smart Thermostats, HVAC Sensors, Zoning Systems,
4) By Entertainment: Smart Speakers, Streaming Devices, Home Theater Systems,
5) By Other Products: Smart Appliances, Home Health Devices, Energy Management Systems.
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How Are New Trends Impacting The Size Of The Home Automation Market?
Continuous advancements in technology are defining the evolution of the home automation market. Many major firms engaged in the home automation industry are prioritizing the creation of technological systems for home automation to solidify their market standing. To exemplify, Hogar Controls, an American company specializing in smart home solutions, unveiled a range of home automation items in June 2022. These include smart touch panels, controllers, digital door locks, and smart curtain motors, all designed to serve as a comprehensive solution for architects, interior decorators, and modern tech-savvy consumers. The smart touch panels operate on Z-Wave technology, equipped with Wi-Fi capabilities compatible with any smartphone and can be voice-controlled using Amazon Alexa or Google Assistant on supported devices through sensors. Moreover, these control panels are designed to withstand heat, humidity, and shocks.
Who Are the Key Players in the Home Automation Market?
Major companies operating in the home automation market include:
• ABB
• Crestron Electronics Inc.
• Schneider Electric SE
• Honeywell International Inc.
• Johnson Controls Inc.
• Siemens AG
• Legrand Group
• Control4
• Home Brain
• Savant Systems Inc.
• Lutron Electronics Company
• Sauter AG
• Bosch Security and Safety Systems
• Silvan Innovation Labs
• Elan Home Systems LLC
• Fueb
• Harman International
• LG Electronics Inc.
• August Inc.
• HomeSeer Technologies LLC
• Amazon Inc.
• Google Nest
• ADT Inc.
• Vivint Smart Home Inc.
• SimpliSafe
• Ring LLC
• Ecobee
• Somfy
• Netatmo
• SmartThings Inc.
What are the Regional Insights into the Home Automation Market?
North America was the largest region in the home automation market in 2024. The regions covered in the home automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
