The hardware segment is projected to account for a majority share and supersede the component market by 2025 . Even , the service segment is expected to witness a significant growth due to developing adoption of the smart technology . Fast growing advances in home automation systems as well as using of technologies ( to add value to the provision of urban services ) have been witnessed as requiring authorization for sustainable development of new methods which may involve integration of hardware , software , and service ultimately leading to amelioration of the overall competitiveness of the industry .
Even , upsurge in the adoption of such devices or systems in applications like lighting , HVAC & energy management , security , entertainment , and smart kitchen is undoubtedly projected to help the industry develop . This augmentation mainly owes to the ever increasing preferences of consumers for connectivity , convenience , safety , and security . Moreover , there has been presence of a large number of manufacturers in the industry which are extending their product portfolios , and the evolving importance of home monitoring from remote locations is also forecasted to drive the market globally .
Geographically , North America is anticipated to be the major regional segment in the years to proceed , owing to well-established manufacturers and a large consumer base . The region has accounted for the largest revenue share and is further expected to grow at a CAGR of more than 8 % from 2018 to 2025 . The North American , European , and Asia Pacific regions are projected to maintain their positions and be the key revenue generating segments of this industry . The Asia Pacific region is currently experiencing a healthy growth in disposable income due to macroeconomic stimulus , which is further expected to drive market growth in future . Also , the market in Europe is anticipated to be promising enough for the global growth because of the increasing investments in infrastructure to improve the standards of living .
The main reason that will boost the industry such that it relishes success in future is- the burgeoning consumer awareness for energy efficient products , urbanization , and relatively changing lifestyles with enhanced convenience , safety and security which will altogether have an affirmative impact on the industry . Furthermore , the amplifying demand for features like the convenience of remote operation and exceptional experience offered by smart home automation is highly likely to propel the global market growth in the coming years . Innovative technologies , such as voice controlled smart home devices and growing geriatric population base will be the key factors that lead to great revenue generation by the global industry cumulatively as the years roll by .
Also , with the passage of time ; growing penetration of Internet of Things which helps in the move to direct digital controls for better machine to machine communication is expected to spur the market growth by encouraging more and more users to adopt for smart home automation technology .