June 19, 2024
Smart Home As a Service Market

The Growth of Smart Home Automation and Home Connected Devices is Driving the Smart Home as a Service Market

The smart home as a service market enables consumers to experience and obtain smart home automation and IoT enabled devices through a subscription-based service model. This removes upfront hardware costs and provides convenience to users through easy self-installation and professional monitoring/support. Smart home devices and systems allow remote access and control ofConnected home appliances, lighting, security cameras, locks and more using a mobile app or voice commands. This provides features like energy management, safety/security and convenience to users. The growth of the smart home industry with increasing consumers adopting devices like smart speakers, security cameras, thermostats and more is driving demand for smart home as a service plans. Users are showing more willingness to pay monthly/annual fees to access smart home technologies and automation without large capital investments.

The global Smart Home as a service Market is estimated to be valued at US$ 11.3 Bn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

5G enabled smart home services- The rollout of 5G networks globally is expected to transform the smart home industry. 5G will enable far more devices to be connected with high bandwidth and low latency. This will drive the development of advanced smart home solutions using AR/VR, 4K video streaming, autonomous robots and more. Service providers are expected to leverage 5G to offer new types of value-added smart home as a service plans with more customized automation capabilities.

Focus on energy management and sustainability – Major service providers are focusing on energy management and sustainability as key value additions in their smart home plans. Solutions like smart thermostats, appliances, lighting and meters allow remote control and monitoring of energy usage. This drives efficiency and reduces bills for users. Providers are marketing such offerings as a way for users to live more sustainable lifestyles while saving money.

Porter’s Analysis

Threat of new entrants: The smart home as a service market is experiencing growth relatively new market with technological advancements. However, the required investments and expertise to develop smart devices and provide services pose challenge for new players.

Bargaining power of buyers: Individual buyers have medium bargaining power due to availability of various service providers in the market. However, large enterprises and governments have high bargaining power due to large demand.

Bargaining power of suppliers: The suppliers of smart devices and technology have medium to high bargaining power due to concentration of players and differentiation in technologies provided.

Threat of new substitutes: There exists threat from alternate technologies like home automation and conventional security systems offering basic functionalities at lower costs.

Competive rivalry: The market comprises major players focusing on service innovations and partnerships to gain competitive advantage over others.

Key Takeaways

The Global Smart Home As A Service Market Share is expected to witness high growth fueled by rising consumer demand for convenience and efficiency. The global Smart Home as a service Market is estimated to be valued at US$ 11.3 Bn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030.

Regional analysis – North America dominates the market currently due to strong economic conditions and early technology adoption among consumers. Asia Pacific is expected to witness fastest growth due to smart city projects and growing internet penetration in the region.

Key players operating in the smart home as a service market are ADT Inc., AT&T Inc., Centrica PLC, Comcast Corporation, Johnson Controls International PLC, and Charter Communications.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it