Connected Home Market

Connected Home Market Outlook (2024 to 2034)

The global connected home market is forecast to expand at a CAGR of 12.8% and increase from a value of US$ 66.01 billion in 2024 to US$ 220.12 billion by 2034-end.

In an era where technology continues to shape our daily lives, the demand for connected home appliances is on the rise, driven by a myriad of benefits beyond improved security. These modern marvels of home automation offer unparalleled convenience, energy efficiency, and peace of mind.

At the forefront is enhanced security, with smart cameras, locks, and alarm systems providing real-time monitoring, remote access, and proactive alerts. Connected home appliances streamline tasks, from adjusting lighting and controlling thermostats remotely to scheduling appliances and integrating with voice assistants for seamless control.

Connected devices contribute to energy savings and environmental sustainability by optimizing usage patterns and reducing waste. Consumers are increasingly prioritizing comfort, efficiency, and convenience, contributing to the expansion of the connected home market size, promising a future where homes are not just smarter but safer and more efficient than ever before. Key players in the market have also started to introduce home robots, which are projected to work on just one command making everything possibly automated.

In the rapidly evolving landscape of modern living, connected home appliances are revolutionizing the way we interact with our living spaces. Beyond their foundational role in security enhancement, these smart systems offer a plethora of features that redefine both safety and entertainment. Connected home security systems, equipped with video surveillance, motion detection, and smart alerts, provide homeowners with peace of mind and proactive monitoring against unauthorized access or suspicious activities. Integration with smart locks and video doorbells further fortifies home security, deterring potential intruders and ensuring comprehensive protection.

Entertainment integration elevates the home entertainment experience to new heights. With seamless connectivity between smart TVs, audio speakers, and streaming devices, users can immerse themselves in personalized entertainment setups throughout their homes. Whether streaming content, controlling playback, or creating ambiance with customizable lighting, connected home entertainment systems offer unparalleled convenience and enjoyment.

Due to the rise in demand for automated homes, the interior and textile home decor market has also exhibited growth, as homeowners are looking to decorate their automated houses.

Report Attributes	Details
Connected Home Market Size (2024E)	US$ 66.01 Billion
Forecasted Market Value (2034F)	US$ 220.12 Billion
Global Market Growth Rate (2024 to 2034)	12.8% CAGR
Canada Market Growth Rate (2024 to 2034)	14.6% CAGR
China Market Value (2034F)	US$ 40.76 Billion
North America Market Share (2024E)	33.7%
East Asia Market Share (2034F)	26.8%
Key Companies Profiled	Honeywell Siemens Johnson Controls Schneider Electric ASSA ABLOY Amazon Apple

What is Paving the Way for Increased Sales of Connected Home Solutions Globally?

“Introduction of IoT Pushing Demand for Modern Home Automation Appliances”

The introduction of the Internet of Things (IoT) has sparked demand for modern home automation appliances worldwide. With IoT technology seamlessly connecting devices and systems, the era of connected homes has dawned, paving the way for unprecedented convenience, efficiency, and innovation, contributing to the overall connected home market growth trajectory.

IoT-enabled smart home appliances, ranging from thermostats and lighting systems to security cameras and entertainment devices, offer users unparalleled control and customization. This connectivity allows for remote monitoring, scheduling, and automation.

The global adoption of IoT-driven home automation reflects a growing consumer appetite for smart solutions that enhance comfort, security, and energy efficiency. As technology continues to advance and connectivity becomes ubiquitous, the success of connected home appliances is projected to soar, shaping the future of modern living on a global scale.

“Focus on Monitoring and Controlling Energy Usage”

The success of connected home appliances is being propelled by the ability to monitor and control energy usage effectively and efficiently for homeowners worldwide. With the rise of smart technology, homeowners now have unprecedented visibility and control over their energy consumption.

Connected home appliances, such as smart thermostats, energy monitoring devices, and smart plugs, enable users to optimize energy usage according to their preferences and schedules. By remotely monitoring and adjusting energy-intensive devices and systems, homeowners can achieve significant savings on utility bills while reducing their environmental footprint.

The focus on energy management resonates with consumers who are increasingly conscious of sustainability and cost savings. As a result, the demand for connected home appliances continues to rise globally, driven by the promise of enhanced efficiency, convenience, and environmental responsibility, with effective energy management at its core.

What is Negatively Impacting Demand for Connected Home Solutions?

“Security Threats Hindering Adoption of Connected Home Technologies”

While demand for connected home appliances continues to soar, security threats loom as a significant setback against market growth. As more devices become interconnected, the risk of cyberattacks and privacy breaches escalates, raising concerns among consumers and industry stakeholders alike.

Instances of hacking into smart cameras, compromising smart locks, and accessing sensitive data have underscored the vulnerabilities inherent in connected home ecosystems. These security concerns can erode consumer trust and dampen enthusiasm for adopting smart technology.

Addressing these challenges requires robust cybersecurity measures, including encryption protocols, and regular software updates.

“Transition from Necessity-Driven to Convenience-Driven Patterns”

Demand for connected home appliances faces a potential obstacle as the market shifts toward being more convenience-driven rather than necessity-driven. While these smart devices offer unparalleled convenience and efficiency, their adoption may be slow if perceived as luxuries rather than essential tools.

Striking a balance between convenience and necessity will be crucial for sustaining demand growth. Manufacturers must emphasize practical benefits alongside convenience to maintain consumer interest and ensure the continued success of the connected home appliance market.

Country-wise Insights

In a recently unveiled analysis, Fact.MR, a leading market research and competitive intelligence provider says that the United States is estimated to hold 73.1% connected home market share in North America.

What is Driving Demand for Connected Home Solutions in the United States?

“Rising Demand for Both Convenience and Safety in Residential Settings”

Attribute	United States
Market Value (2024E)	US$ 16.26 Billion
Growth Rate (2024 to 2034)	13.5% CAGR
Projected Value (2034F)	US$ 57.85 Billion

Homeowners in the United States are driving a surge in demand for modern home automation appliances, seeking both convenience and safety. The desire for smart devices that offer seamless control and monitoring capabilities aligns with the growing emphasis on convenience in daily life.

Heightened concerns about safety and security at home have propelled the adoption of connected appliances equipped with features such as video surveillance, smart locks, and motion detection. This dual focus on convenience and safety underscores the appeal of connected home solutions, fueling their widespread adoption across the country.

Will Demand for Connected Home Solutions Increase in China?

“Market Benefiting from Evolving Consumer Lifestyles Coupled with Environmental Concerns”

Attribute	China
Market Value (2024E)	US$ 10.85 Billion
Growth Rate (2024 to 2034)	14.2% CAGR
Projected Value (2034F)	US$ 40.76 Billion

Changing consumer preferences and lifestyles, especially among younger generations, favor the adoption of connected home solutions. Demand for convenience, comfort, and personalized experiences drives the uptake of devices that offer remote control, automation, and integration with other smart devices.

With growing awareness of environmental issues and sustainability, Chinese consumers are increasingly interested in energy-efficient and eco-friendly products. Smart home appliances that optimize energy usage and reduce environmental impact align with these concerns, driving their popularity.

Category-wise Evaluation

Which Functionality is Widely Preferred by Homeowners for Connected Home Solutions?

“Higher Demand for Energy and Utilities Management Solutions for Optimizing Energy Usage”

Attribute	Energy and Utilities Management
Segment Value (2024E)	US$ 24.36 Billion
Growth Rate (2024 to 2034)	12.1% CAGR
Projected Value (2034F)	US$ 88.27 Billion

Energy and utility management reign supreme as the preferred functionality. Homeowners prioritize solutions that optimize energy usage, reduce utility costs, and promote sustainability.

Smart thermostats, energy monitoring devices, and smart plugs empower users to monitor and control energy consumption with ease, aligning with their desire for efficiency and eco-conscious living. As environmental concerns grow and energy prices fluctuate, the appeal of energy management features continues to drive the adoption of connected home solutions, reflecting a shift toward more sustainable and cost-effective household management.

Where are Connected Home Solutions Most Extensively Deployed?

“Compact Living Spaces and Desire for Convenience in Apartments”

Attribute	Apartments
Segment Value (2024E)	US$ 31.36 Billion
Growth Rate (2024 to 2034)	12.8% CAGR
Projected Value (2034F)	US$ 108.3 Billion

Apartment owners are leading the trend in adopting connected home solutions. With compact living spaces and a desire for convenience, homeowners opt for connected devices that enhance efficiency and functionality. Smart thermostats, security cameras, and lighting systems offer solutions tailored to apartment living, providing remote control and automation features.

The appeal of smart technology aligns with the modern lifestyle of apartment dwellers, offering seamless integration and customization. As the demand for connected home appliances continues to rise, apartments remain a prime market segment.

Market Competition

Key players in the connected home industry are Ericsson AB, Schneider Electric SE, Siemens AG, ABB Ltd., Honeywell International, Inc., General Electric Company, United Technologies Corporation, Johnson Controls, Inc., Legrand S.A., and Samsung Electronics Co., Ltd. are among the key contenders in the connected home market.

Industry giants are fiercely competing to capture a significant market share by offering innovative products, comprehensive service platforms, and strategic alliances. With a focus on leveraging strengths, addressing weaknesses, seizing opportunities, and mitigating threats, each player is striving to establish itself as a leader in the rapidly evolving connected home market trends.

• In May 2021, Schneider Electric unveiled plans to incorporate the newly developed 'Matter' connectivity standard into its array of connected home and building solutions. Previously recognized as Connected Home over IP (CHIP), this rebranded “Matter” technology is hailed for its open-source nature, enabling seamless integration across a wide spectrum of smart building applications.

Key Segments of Connected Home Market Research

• By Functionality :

  • Energy & Utilities Management
  • Smart Entertainment
  • Wellness & Monitoring
  • Security & Safety
  • Smart Appliances

• By Component :

  • Lighting Control Solutions
  • Security Solutions
  • Entertainment Solutions
  • Home Healthcare Solutions
  • Energy Management Solutions
  • Kitchen Solutions
  • HVAC Solutions
  • Professional Services
  • Managed Services

• By Platform :

  • Smartphones
  • Laptops
  • Home Gateways

• By Type of Home :

  • Apartments
  • Villas/Bungalows

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa