Home Automation Market To Reach US$ 715.6 Billion By 2032 | Astute Analytica

(MENAFN- GlobeNewsWire - Nasdaq) The home automation market's growth is driven by consumer spending, preferences, adoption trends, and technological advancements.

New Delhi, Feb. 11, 2025 (GLOBE NEWSWIRE) -- The global home automation market valuation is poised to reach US$ 715.6 billion by 2032, with a CAGR of 22.8% during the forecast period from 2025 to 2032.

Over the past few years, the world has seen a substantial change in consumer preferences, spending, adoption trends, and technological advancements. This has resulted in significant changes within the home automation market. For instance, in the U.S., 46% of consumers augmented their spending on home technology in 2022, with smart TVs (55%) and security systems (23%) witnessing the most significant uptick.

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These figures reveal a fundamental change toward more connected, suitable, and secure living environments as homes change into places where people work, study, relax, and play. One byproduct of this shift has been consumers' interest in buying more smart devices that combine into broader systems such as Amazon Alexa or Google Home Assistant. This trend has propelled demand for new products like smart speakers; in fact, research from International Data Corporation suggests that worldwide shipments of these devices will rise from about 124 million units in 2019 to about 200 million by 2023.

As per our recent forecast, roughly 20% of households around the global home automation market will be equipped with smart home technologies by this year's end. This suggests that millions who do not yet own such innovations are likely to buy them soon. Wherein, the largest share of investment into smart home appliances will go toward security system devices (US$ 19.4 billion), reflecting homeowners' rising concern for privacy and property safety amidst rapidly advancing digital technologies. Smart appliances (50%), lighting (41%), and voice control (36%) followed security system devices as the most adopted smart home devices. The increasing desire for convenience - particularly in the kitchen, where many consumers have concentrated their purchasing power in recent years - is a rising force behind these adoption rates.

Voice Control System Integration and Adoption

Voice control technology has taken over the market and changed user interaction with smart devices forever. On top of just enhancing the user experience, providers like Amazon and Google have made voice assistants household names. eMarketer says that the United States should hit around 125 million voice assistant users by close of business this year which would account for almost 40% of our population! That alone tells you how fast voice control has gained popularity in the home automation market but there are also compatibility benefits too.

Astute Analytica's study predicts that there will be more than 8 billion digital voice assistants being utilized worldwide within three years from now. At the end of last year, there were only about 2.5 billion of them being utilized and we already thought that was a lot! Needless to say, voice assistants are making lives better. Not only have people found comfort in utilizing their voice but they are also comfortable spending money on it. A survey showed that in the year 2023, voice shopping is estimated to hit US$ 20 billion in sales. This number skyrocketed from only US$ 2 billion four years ago in 2018.

However, the global home automation market is at risk of being limited as the concern for user privacy rises. Consumers are starting to be afraid of what companies will do with their personal information and data. It also makes sense, a survey showed that 33% of consumers in America are concerned about this. The fear of data breaches and unauthorized access to someone's personal information is enough to worry anyone. Such an event would not only compromise the security and privacy of individuals but could also cause harm to them. Because of this, Americans are hesitant to adopt these technologies, as they believe their data will end up being public anyway.

Kaspersky recently conducted a study that discovered that about 40% of smart homes are vulnerable to cyberattacks. With such an alarming statistic it is no surprise privacy concerns have grown so much among consumers. The fact that hackers can easily get into people's houses and mess with their systems or even rob their personal information has people on edge about combining these technologies into homes. Astute Analytica analysts released a report stating that if these concerns continue then people should expect less than a 5% annual growth rate in terms of adoption rate for smart home techs.

Hardware Leads Global Home Automation Market, While Services Segment Poised for Explosive Growth

The hardware segment currently holds onto 59.14% of the market share within the global home automation market making them dominate over other segments. This dominance can be attributed primarily because it is where the foundation for any home automation system is built; including sensors, controllers, switches, etc. Also, the rising desire for integrated and advanced home systems has caused there to be a major surge in smart home device adoption. To make matters even better for hardware, there is also been an expansion in continuous innovation and development of more refined and user-friendly products.

Looking at the horizon, the services segment of the home automation market is anticipated to rise at an astonishing growth rate of 24.04%. Its growth can be attributed to the expansion in demand for professional services such as system integration, maintenance, and support.

As home automation systems get more complicated, so does the expertise required to ensure seamless function and integration of different components. Also, consumers are beginning to lean towards personalized home automation solutions that fit their requirements and preferences which bolsters the demand for specialized service offerings. The rising expectations from consumers for smarter, more efficient, and connected homes drive the development of both hardware and service segments.

Key Companies:

• ABB Ltd.
• Amazon, Inc.
• Apple Inc.
• ASSA ABLOY
• Axis Communication AB
• Comcast Corp.
• Control4 Corp.
• Google
• Honeywell International, Inc
• Hubbell Inc.
• Ingersoll-Rand PLC
• Johnson Controls International
• Legrand S.A.
• LG Electronics
• Lutron Electronics Co. Inc.
• Robert Bosch Gmbh
• Samsung Electronics Co., Ltd.
• Schneider Electric
• Siemens AG
• Sony
• United Technologies Corporation
• Kiddi
• Other Prominent Players

Key Segmentation:

By Type

• Hardware
• Lighting Control

• • Relays

• • Occupancy Sensors

• • Daylight Sensors

• • Timers

• • Dimmers

• • Switches

• • Lighting Control Accessories and Other Products

• Security and Access Control

• • Video Surveillance Systems

• • • Cameras & NVRs

• • • Software/Video Analytics

• • Access Control Systems

• • • Biometric Access Control

• • • Non-Biometric Access Control

• HVAC Control

• • Smart Thermostats

• • Heating and Cooling Coils

• • Actuators

• • Smart Vents

• • Others

• Entertainment and Other Controls
• Home Healthcare

• • Health Status Monitors

• • Physical Activity Monitors

• Smart Kitchen

• • Smart Coffee Makers

• • Smart Kettles

• • Smart Dish Washers

• • Smart Ovens

• • Smart Cooktops

• • Smart Cookers

• Home Appliances

• • Smart Refrigerators

• • Smart Washers

• • Smart Locks

• • Smart Water Heaters

• • Smart Vacuum Cleaners

• Smart Furniture

• • Smart Tables

• • Smart Desks

• • Smart Sofas

• • Others

• Software
• Services

By Technology

• Wired
• Wireless

• • Bluetooth

• • Wi-Fi

• • Zigbee

• • Dali

• • Others (z-wave & hybrid)

By Application

• Security
• Lighting
• Entertainment
• Healthcare
• Energy Management
• HVAC
• Others

By End User

• Residential
• Commercial

By Building Type

• Single Family Homes
• Apartment Building

• • Low rise

• • High rise

• • Skyscrapers

• Villas/Bungalows
• Others (mobile homes, cottages)

By Construction Type

• Renovation
• New

By Distribution Channel

• Online
• Offline

• • Speciality Stores

• • Retail (Supermarkets/Hypermarkets)

• • Third Party Service Providers (Telecom, Security, OEMs)

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)
• South America

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About Astute Analytica

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