The global smart home market has witnessed impressive growth in recent years, driven by the growing adoption of smart devices, the increasing need for energy-saving solutions, and the rising importance of home monitoring systems.
According to data presented by Buy Shares, the revenues of the global smart home market jumped by 16% year-over-year to $77bn in 2020. The increasing trend is set to continue this year, with smart home revenues growing by 28% YoY and reaching $99.5bn in 2021.
The Number of Smart Home Households to Hit 258M in 2021
Smart home technology refers to any suite of devices, appliances, or systems that connect into a common network that can be independently and remotely controlled. This type of technology enables homeowners to manage all of their home devices through a smart home app from one place. Moreover, it maximizes home security and saves on energy costs.
In 2017, the global smart home market hit $39.2bn in revenue, revealed the Statista survey. Over the next two years, this figure jumped by almost 70% and hit $66.4bn in 2019.
Statistics show the entire sector continued its impressive growth in 2020, despite the COVID-19 crisis, with revenues rising by 16% YoY to $77bn. The noticeable upward trend is set to continue in the following years, with global smart home revenues reaching almost $176bn by 2025, a 127% jump in five years.
Smart appliances represent the market’s largest segment, expected to generate $37.1bn in revenue in 2021, a 30% jump in a year. Control and connectivity devices are forecast to hit $19.4bn in revenue this year, 30% more than in 2020. Security systems, home entertainment, comfort and lightening, and energy management solutions follow with $15.1bn, $11.3bn, $8.4bn, and $7.9bn, respectively.
The Statista survey also revealed the number of households in the smart home segment significantly increased over the years, rising from 141 million in 2017 to 221.7 million in 2020. This figure is expected to hit over 258 million in 2021 and continue rising to 483 million by 2025.
Revenues of the Five Largest Smart Home Markets to Jump by $13.5B in 2021
Analyzed by geography, the United States represents the largest smart home market globally, expected to generate almost 30% of combined revenues this year. Statistics show the US market is forecast to grow by 23% YoY and hit $28.8bn value in 2021.
With $18bn in smart home revenues, 29% more than a year ago, the Chinese market ranked as the second-largest globally. The UK market, as the third-largest globally, is expected to grow by 28% YoY and generate $6.8bn in revenue in 2021. Germany and Japan follow with $6.1bn and $5.4bn, respectively.
Statistics show the combined revenues of the world’s five largest smart home markets are expected to hit $65.1bn in 2021, a $13.5bn increase in a year.