INDUSTRY REPORT
Smart homes , it told ISMR , are on the rise , with nearly 30 million U . S . households projected to add smart home technology in the near future . The products that consumers are looking to add to their homes include connected cameras ( highest demand ); video doorbells ( second highest demand ); connected light bulbs ; smart locks and smart speakers .
Working from home has increased demand for smart home products .
Smart home market
According to a new report on MarketsandMarkets , smart home market size is expected to reach US $ 138.9 billion by 2026 from US $ 84.5 billion in 2021 , at a CAGR of 10.4 %.
The increasing number of internet users and the growing adoption of smart devices , along with growing needs for energy-saving and low carbon emission-oriented solutions , are the key drivers in the market . In addition to this , factors such as the increasing importance of home monitoring in remote locations and increasing disposable incomes of people in developing countries have contributed to the growth of the smart home market .
“ Demand for smart home products , such as smart speaker and home healthcare , has increased due to the COVID-19 pandemic , as the majority of the population is working from home . The demand for home healthcare products ( such as fitness trackers and health status monitors ) are on the rise as people have become more conscious about monitoring heart rate , oxygen levels and other fitness-related activities regularly to avoid COVID-19 risk factors . However , global sales are expected to decline by 5 – 10 % in this fiscal year , depending upon the progression of the virus spread ,” said the report .
Shipments of smart home products depend on the utilisation and requirements of homeowners . Consumers usually prefer products that offer convenience and energyefficiency . The cost of smart home products is high and involves other upfront costs such as installation and maintenance costs . The cost factor influences the market negatively .
“ The concept of home automation is not new in economically advanced countries in North America and Europe . Most of the residences in North American countries are already equipped with smart devices . Several residents have been using smart thermostats , smart meters , HVAC controls and lighting controls for a long time . As the switching cost of these products is high , consumers do not replace them soon after installation . Even European countries , such as the UK and Germany , have a considerable number of smart homes . Therefore , the market for home automation products , which had a substantial penetration rate over the past three years , is expected to grow at a slower pace during the forecast period ,” said the report .
In the wake of COVID-19 , home security solutions , such as smart locks and cameras , are facilitating contactless deliveries . Home healthcare solutions for the elderly to live a safe and independent lifestyle , such as remote chronic health monitoring , are gaining momentum . Work-from-home solutions are being used to maximize productivity ( such as smart speakers / hubs to keep track of meetings and tasks ).
“ More entertainment needs centred around health , spirituality and personal needs are emerging owing to which there is increased adoption of smart TVs , home theatres and entertainment systems ,” added the report .
However , compatibility issues between various devices is a challenge for the growth of this market . As a result , end-users regularly install units which can only be controlled by the manufacturer ' s app . Multiple control spots is also an issue .
“ In recent years , the demand for smart kitchen products , like smart ovens , is on the rise due to growing demand for frozen food and ready-to-cook foods . Unmonitored cooking is one of the leading factors responsible for kitchen fires . As a result , advanced sensors are now
COVID-19 has triggered a huge increase in the demand for smart home products like smart wearables such as smartwatches , smart bands and finger rings
being developed , which enables contextual data acquisition around oven alarming for fire hazards to users . Such safety features are anticipated to further fuel demand for smart ovens in the forecast , and thereby contribute to the growth of the market . All these factors have led to the increased adoption of smart kitchen appliances ,” said the report .
“ COVID-19 has triggered a huge increase in the demand for smart home products like smart wearables such as smartwatches , smart bands and finger rings . The data
from wearable devices can also be utilised , along with self-reported symptoms , for identifying cases of COVID-19 . There has therefore been a surge in the sales of smart wearable devices , especially through online channels . Rapidly growing digitalisation and expansion of e-commerce , especially among the young and millennial population , at the global level are driving online sales of the product across the world ,” said the report .
The market in APAC is expected to grow at the highest CAGR during the forecast period . Factors such as changing lifestyles ; increasing disposable income ; rising geriatric population ; growing focus on smart building infrastructure in developing economies of the region ; the presence of a huge customer base and rapid technological advances in smart home products are driving the growth of the market in APAC . n
ISMR April 2022 | sheetmetalplus . com | 27