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Smart Home Automation Market Size, Trends 2025 | Industry Report

Smart Home Automation Market Analysis Report By Component, By Technology, By Application, By Region And Segment Forecasts From 2017 To 2025

Report ID: MN17619900  |  Published: July 2020  |  No of Pages: 105
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The global smart home automation market size was worth USD 46.15 billion in 2016. The market is estimated to be driven owing to increasing adoption of automation technologies in the residential sector. Rising need for operating the homes from remote location coupled with the exceptional experience provided by automation technologies are boosting the market growth.

Rising deployment of devices and systems in applications such as HAVC and energy management, smart kitchen, lighting, security and entertainment are further projected to drive the market growth. Features such as safety, convenience and connectivity have become paramount among consumers, thereby, driving the demand for automation technologies across residential buildings.

China smart home automation market

The rise in urbanization and geriatric population growth requires smart solutions to address the challenges. With the rapid penetration of smart homes, various applications and several platforms, there lies a huge opportunity for growth in the future for the market. 

Moreover, the emergence of IoT that enabled machine-to-machine communication has further encouraged consumers to opt for home automation technologies. However, high cost incurred in installation and lacks of awareness about various technologies are impeding the market growth.

Component Insights

Depending on the component, the market is bifurcated into software, hardware and service. Of them, the hardware division is projected to account for the largest market share by 2025. The service category is also likely to register the significant growth over the forecast duration owing to the rising adoption of automation technologies for smart homes. 

Rapidly evolving smart homes automation systems is expected to integrate the software, hardware and service, which, in turn, is anticipated to make the market more competitive.  Various systems for security, climate and lights can be operated from any devices. In addition, service providers are offering seamless integration of different automation components at home, thus, ensuring better consumer experiences.

Application Insights

On the basis of application, smart home automation market is segmented into lighting, smart kitchen, HVAC and energy management, security and entertainment. Among them, the entertainment category is projected to account for the largest share in the market. Additionally, the smart kitchen is projected to register a considerable growth largely because of the huge demand for smart appliances. 

Further, various other factors such as energy-preservation, button control and growing focus on safeguarding the environment from polluting agents such as toxic wastes and greenhouse gases are anticipated to drive the market over the next few years.

The automation in smart homes offers various benefits such as easy extension, scalability, mobile devices integration and remote control of various home functions. These features enhance the consumer experience, thereby, driving the market growth.

Technology Insights 

Depending on the technology, the market is categorized into wireless, cellular and others. Of them, the wireless division is estimated to account for the largest share by 2025. The wireless technology requires low cost in setting-up. Further, this technology is less invasive and convenient. These aforementioned factors are further anticipated to drive the segment growth.  

Global smart home automation marketAlong with advanced technology, the demand for cost-effective solutions has also increased over the past few years. IoT enabled solutions are highly preferred by the majority of start-ups and gaining traction in smart home automation.

Automation of a smart home is about enhancing consumer experiences and providing them comfort. Technology advancement has ensured convenience along with making revolutionary changes and increasing the practical applications for different products.  

Regional Insights

North America is projected to account for significant market share largely because of the presence of well-established companies and huge consumer base. The region held the largest market share in 2016 and predicted to register a CAGR of 8% over the forecast period. Apart from North America, Asia Pacific and Europe are likely to be the key market for smart home automation. 

Growing urbanization and rising consumers’ purchasing power make Asia Pacific a promising region for investors. Further, rising geriatric population and advancement in technologies are projected to drive the regional growth over the next few years. 

Europe, on the other hand, is anticipated to be a lucrative region owing to the improving living standard of consumers that led to a rise in demand for energy management and HVAC. Further, the region is witnessing a surge in the infrastructural development, which, in turn, is estimated to positively affect the market growth.

Smart Home Automation Market Share Insights

Major players operating in the market are Control4 Corporation, Siemens AG, Legrand SA, Schneider Electric, Lutron Electronics Co., Inc., Honeywell International Inc., Crestron Electronics, Inc., Control4 Corporation and ABB Ltd among others. These players are emphasizing on various strategic initiatives such as product development and up-gradation of existing product lines to gain a competitive edge in the market. 

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Country scope

U.S., Canada, Mexico, Germany, UK, China, Japan, India and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global smart home automation market based on applications, products, types, and regions:

• Component Outlook (Revenue, USD Million; 2014 - 2025)
    • Hardware
    • Software
    • Service

• Technology Outlook (Revenue, USD Million; 2014 -2025)
    • Cellular
    • Wireless
    • Others

• Application Outlook (Revenue, USD Million; 2014 - 2025)
    • Security
    • Lighting
    • Entertainment
    • HVAC & Energy Management
    • Smart Kitchen

• Regional Outlook (Revenue, USD Million; 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • UK
    • Asia Pacific
        • China
        • India
        • Japan
    • South America
        • Brazil
    • MEA

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