Smart Homes Market Likely to Prosper due to Rising Participation by Global Technology Pioneers

The global smart homes market has come into the spotlight in recent years due to the rising demand for smart instruments, which has been facilitated by the steady rise in the disposable income of consumers in developed regions. The smart homes market has made steady progress through the economic upset caused by the 2008-09 economic depression as well as the various economic complications created by the political crises in Europe. The global smart homes market is considered to represent the future of home design and is thus expected to rise in demand steadily over the coming years, aided by the consistent research efforts in the field of the Internet of Things (IoT).

According to Transparency Market Research (TMR), the global smart homes market is expected to exhibit a robust CAGR of 14.6% between 2017 and 2025. The market is thus expected to rise from its 2016 valuation of US$30 bn to more than US$97 bn by the end of 2025.

How is the global smart homes market expected to progress in the near future?

The global smart homes market could be set for a period of intense competition in the coming years, as several pioneering companies in the technology sector have entered the smart homes market in recent years due to its promise of steady revenue. Technology giant Google Inc. and online shopping giant Amazon Inc. are already among the key names in the global smart homes market due to the consistent performance of their smart home assistant products, Google Home and Amazon Echo.

The likely entry of Apple’s smart home assistant, which will be powered by Siri and will offer similar functionality to Google and Amazon’s existing devices, could further complicate matters in the global smart homes market. While Apple hasn’t made a confirmed announcement yet, the company is widely expected to launch its smart home assistant device in the third or fourth quarter of 2017, possibly at the WWDC in June 2017. The impending three-way duel between Apple, Google, and Amazon could go a long way in determining the global leader in the smart home market.

What are the key drivers and restraints for the smart homes market?

The global smart homes market has exhibited smooth growth in the last few years due to the rising adoption of smart home instruments. However, compatibility issues between the multiple existing smart home systems have become a key restraint for the smart home market. Efforts towards establishing a common operating platform for smart home and IoT technology are thus likely to go a long way in boosting the growth prospects of the global smart home market.

Another trend likely to affect the dynamics of the global smart home market is the declining demand for dedicated smart home hubs. Due to the entry of app-based smart home monitoring systems and smart speakers powered by voice assistant software, smart home hubs are on the way to redundancy. However, the tide could be halted by the incorporation of the features of smart home hubs into other devices commonly bought by the consumer, such as routers and smart TVs.

The regional market for smart home technology in Asia Pacific is likely to play a key role in the development of the global smart homes market in the coming years due to the growing demand for technologically advanced products in dynamic economies such as India and China. By application, HVAC is likely to remain the key segment of the global smart homes, followed by entertainment control, security and access control, and lighting control.


Post a Comment

Note: only a member of this blog may post a comment.

Latest Post

Market Research Reports