The growing emphasis on deploying energy-efficient technology and maximizing resource usage amongst people is what is likely to trigger development of the global smart home market. The need of installing security systems to lessen the risk of theft is expected to affect expansion of the smart home market size substantially. The development of cutting-edge technologies, such as entertainment controls, security and access controls, wireless technology, and Heating, Ventilation, and Air Conditioning (HVAC) controllers is predicted to drive demand for smart homes in the near future.
Smart homes are capable of carrying out sophisticated tasks like automatically illuminating emergency exit in the case of a fire alarm in addition to primary functions like shutting curtains, lowering or turning off lights. Utility meters, thermostats, and security cameras are just a few instances of the household appliances that now have connectivity as a high-end innovation. Smart home market analysis predict that the trend of connectedness is expected to spread over the next several years to the point where it almost permeates every appliance and piece of equipment inside a household.
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Increasing Incorporation of Emerging Technologies to Drive Market Expansion
The increasing uptake of cutting-edge technologies like AI, machine learning, IoT, blockchain, and various others are expected to emerge as one of the prominent smart home market trends. The market for smart homes is estimated to benefit from a high adoption of IoT in both developed and developing countries. The ability of technology to provide communication between devices has helped to lower energy wastages.
Numerous government agencies have been able to move forward with energy development strategies because to the quick adoption of smart home technology. For instance, the Commission Regulation (EU) 2019/2020, new rules that updated the eco-design of lighting source as well as labeling of energy efficiency, were issued by the European Union in October 2019. Over the upcoming years, this is projected to have a substantial influence on the expansion of the smart home market.
During the outbreak of Covid-19, there has been a sharp rise in the demand for smart home appliances. Customers clamoured for smart gadgets like automated dirt disposal vacuums and robotic vacuum cleaners to maintain cleanliness and hygiene at home. Besides, demand for video doorbells to reduce hand touch, and cutting-edge security cameras for security and safety are also expected to observe considerable rise. As several prominent firms began offering health management solutions during the Covid-19 outbreak, the smart home industry saw an upsurge in demand.
For instance, to enhance the health of the building environment, Honeywell International Inc. announced Healthy Buildings solutions in August 2020. This system provides social segregation regulations together with a clean and secure environment for building residents.
Wireless networks are used by home security equipment to connect to the central hub. Size, signal range, and cost factors all impact these security systems, making it challenging to settle on a single model.
Rise in Aging Population is Expected to Drive Demand in the North America Market
Smart home market statistics forecast that North America is anticipated to have a significant revenue share and is expected to make a significant contribution to the smart home market. The reason for such growth is the region’s aging population, which is on the rise. By 2050, it is expected that there will be an additional 88 million (approximately) people in the 65 years and older age segment of the population. It is anticipated that this would result in a rise in demand for medical and healthcare services.
Asia Pacific region is anticipated to develop quickly in the years to come and is expected to account for a considerable smart home market share. It is anticipated that the steadily rising demand from the residential segment is expected to fuel expansion of the regional market. In order to satisfy the needs of prospective customers, regional businesses are concentrating on innovations and developments. For instance, Vivint Smart Home, Inc. and Mosaic Acquisition Corp. merged in January 2020. Both the businesses want to increase their market share and consequently boost their product lines.