The Smart Home As a Service Market is estimated to be valued at US$ 11.3 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The Smart Home As a Service market consists of smart home devices and services that enable consumers to remotely control and monitor their homes using smartphones, tablets, personal computers or other networked device. This includes security and access controls, lighting, HVAC, entertainment systems, laundry devices and kitchen appliances among others. These devices and services provide advantages like enhanced security, energy efficiency and convenience to users. The growing need for safety, comfort and reduced energy bills is driving demand for smart home solutions.
Market key trends:-
One of the key trends fueling the growth of smart home as a service market is rising adoption of Internet of Things (IoT) technologies. IoT allows for interconnectivity between various smart home devices through internet connectivity. This enables remote monitoring and control of devices from any location using smartphones and other devices. According to a report by Gartner, the number of IoT connected devices is projected to reach over 25 billion by 2030. Growing penetration of IoT is encouraging the development of more integrated smart home solutions, thereby accelerating the demand for smart home services. The ability of IoT to offer centralized and remote access to smart home devices through applications is driving increased desire for convenience and security among homeowners.
- Threat of new entrants: The threat of new entrants in the smart home as a service market is moderate as it requires significant investment to build infrastructure and gain consumer trust.
- Bargaining power of buyers: The bargaining power of buyers is high as several service providers offer similar smart home services giving consumers options to switch.
- Bargaining power of suppliers: The bargaining power of suppliers such as device manufacturers is moderate as they depend on service providers for large scale distribution of devices.
- Threat of new substitutes: The threat of new substitutes is low as smart home services integrate various smart devices providing convenience, unlike individual smart devices.
- Competitive rivalry: is high due to presence of numerous international and regional players competing on basis of capabilities, pricing, and service quality.
- Strength: Growing adoption of connected devices provides opportunity to offer various smart home services. Varied service portfolios to suit heterogeneous customer needs.
- Weakness: High initial infrastructure cost and dependency on third party technology providers for upgrades. Data privacy and security concerns limit customer acquisition.
- Opportunity: Untapped opportunities in developing markets. Growing number of smart city projects spur opportunities.
- Threats: Substitution threat from do-it-yourself smart home solutions and standalone smart device control through apps. Technology obsolescence risks require continuous innovation.
The Global Smart Home As a Service Market Growth is expected to witness high, exhibiting CAGR of 12% over the forecast period, due to increasing cyber threats and need for enhanced security and monitoring services in smart homes. By 2023, the market is estimated to reach a value of US$ 11.3 Bn.
Regional analysis: North America dominates the global market due to high consumer spending on smart homes and presence of major players like ADT and Comcast in the region. Asia Pacific market is expected to grow at fastest pace during the forecast period with China and India emerging as lucrative markets backed by growing adoption of smart home solutions in the countries.
Key players operating in the smart home as a service market are Ingersoll-Rand plc (Nexia), Vivint, Inc., Protection One Alarm Monitoring, Inc., The ADT Corporation, Telus Communications, Frontpoint Security Solutions, AT&T Inc., Johnson Controls, Inc., Comcast Corporation, Charter Communications (TWC), and CenturyLink, Inc. The players focus on partnerships, acquisitions, and new service launches to retain their market position. For instance, in 2022, Vivint partnered with Altametrics to strengthen its AI capabilities for proactive resident services.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it