The global smart home market has witnessed impressive growth in recent years, driven by the growing adoption of smart devices, the increasing need for energy-saving solutions, and the rising importance of home monitoring systems.
According to data presented by Buy Shares, the revenues of the global smart home market jumped by 16 percent year-over-year (YoY) to $77 billion in 2020. The increasing trend is set to continue this year, with smart home revenues growing by 28 percent YoY and reaching $99.5 billion in 2021.
Smart home technology refers to any suite of devices, appliances, or systems that connect into a common network that can be independently and remotely controlled. This type of technology enables homeowners to manage all of their home devices through a smart home app from one place. Moreover, it maximizes home security and saves on energy costs.
In 2017, the global smart home market hit $39.2 billion in revenue, revealed the Statista survey. Over the next two years, this figure jumped by almost 70 percent and hit $66.4 billion in 2019.
Statistics show the entire sector continued its impressive growth in 2020, despite the COVID-19 crisis, with revenues rising by 16 percent YoY to $77 billion. The noticeable upward trend is set to continue in the following years, with global smart home revenues reaching almost $176 billion by 2025, a 127 percent jump in five years.
Smart appliances represent the market’s largest segment, expected to generate $37.1 billion in revenue in 2021, a 30 percent jump in a year. Control and connectivity devices are forecast to hit $19.4 billion in revenue this year, 30 percent more than in 2020. Security systems, home entertainment, comfort and lightening, and energy management solutions follow with $15.1 billion, $11.3 billion, $8.4 billon, and $7.9 billion, respectively.
The Statista survey also revealed the number of households in the smart home segment significantly increased over the years, rising from 141 million in 2017 to 221.7 million in 2020. This figure is expected to hit over 258 million in 2021 and continue rising to 483 million by 2025.
Analyzed by geography, the United States represents the largest smart home market globally, expected to generate almost 30 percent of combined revenues this year. Statistics show the US market is forecast to grow by 23 percent YoY and hit $28.8 billion value in 2021.
With $18 billon in smart home revenues, 29 percent more than a year ago, the Chinese market ranked as the second-largest globally. The U.K. market, as the third-largest globally, is expected to grow by 28 percent YoY and generate $6.8 billion in revenue in 2021. Germany and Japan follow with $6.1 billion and $5.4 billion, respectively.
Statistics show the combined revenues of the world’s five largest smart home markets are expected to hit $65.1 billion in 2021, a $13.5 billion increase in a year.