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Smart Home Market Value & Industry Growth (2022-2032)

by Josh Howarth
August 24, 2022

Smart homes are on the rise. And the global adoption of smart connected devices is increasing at a rapid rate.

There are several reasons behind the increased adoption – from new technology to affordable prices, and an abundance of user benefits.

Below we’ll dive into these smart home market stats:

Smart Home Industry Highlights

  • The global smart home market is valued at almost $80 billion
  • As of 2032, the smart home market is projected to reach $250 billion
  • The global smart home market is growing at a CAGR of 12.3%
  • As a region, the Far East and China have the largest smart home market share
  • Home security’s market share is set to increase by 6% in a seven-year period

Smart Home Market Size

According to the latest data, the global smart home market is worth an estimated $78.34 billion.

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Improving technology, more affordable prices, and a desire for a connected home are some key reasons behind the market’s rapid growth.

Data shows that smart home consumer spending has grown from $86 billion in 2020 to approximately $134 billion in 2022.

And according to Strategy Analytics, market spending is likely to increase to $173 billion worldwide by 2025 - around double 2020’s figure.

Sources: FutureMarketInsights, Strategy Analytics

Smart Home Market Growth Projections

The worldwide smart home market is valued at $78.34 billion in 2022.

The smart home space is expected to climb to $250.46 billion by 2032 at a compound annual growth rate (CAGR) of 12.3%.

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Here’s a look at predicted smart home market growth over the next decade:

Year Market Valuation Calculated Based on CAGR
2022 $78.34 billion
2023 $87.98 billion
2024 $98.8 billion
2025 $110.95 billion
2026 $124.6 billion
2027 $139.93 billion
2028 $157.14 billion
2029 $176.46 billion
2030 $198.17 billion
2031 $222.54 billion
2032 $250.46 billion

Source: FutureMarketInsights

Growth Drivers in the Smart Home Space

Advancements in security technology are a primary driver within the smart home market.

Additionally, the increase of Internet of Things (IoT) devices has lent itself to greater connectivity within the home. And in recent years, smart devices have become more affordable, accelerating adoption further.

Refinements in safety, interconnectivity, and customization as well as less prohibitive prices are likely to continue to drive the market to new heights.

Source: FutureMarketInsights

Key Players in the Smart Home Market

  • Samsung (South Korea)
  • Huawei (China)
  • Qualcomm (US)
  • Alphabet (US)
  • LG Electronics (South Korea)
  • Microsoft (US)
  • Beijing Didi Technology (China)
  • Xiaomi (China)
  • eBay (US)
  • Midea (China)
  • Intel (US)
  • ZTE (China)
  • Gree Electric Appliances (China)
  • Snap Inc. (US)
  • Alibaba (China)
  • Amazon (US)
  • Philipps (US)
  • Google (US)
  • Apple (US)
  • IKEA (Sweden)
  • Siemens (Germany)
  • Bosch (Germany)
  • Belkin (US)

Source: iplytics, The Buddy Company

Smart Home Market Geographic Breakdown

Broken down by region, the Far East and China have the largest current smart home market share. The region has shipped around 289.8 million smart home units - almost twice as many as Europe (165.6 million) and North America (151.6 million).

Here’s a closer look at the data:

Year The Far East and China Europe North America Latin America Rest of World
2020 140.5 million 81.2 million 75.7 million 9.5 million 42.2 million
2021* 220.9 million 119.6 million 118.6 million 14.3 million 63.7 million
2022* 289.8 million 165.6 million 151.6 million 21.3 million 89.1 million
2023* 375 million 219.6 million 192.5 million 31 million 121.8 million
2024* 521.8 million 283.1 million 250 million 45 million 175.8 million
2025* 726.7 million 384.9 million 329.2 million 68.8 million 260.9 million

Source: Juniper Research

Smart Home Industry Growth by Segment

Consumer spending on smart home-related devices is on the rise.

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Here is a more detailed look at the figures:

Year Consumer Spending
2019 $95 billion
2020 $86 billion
2021* $123 billion
2022* $134 billion
2023* $147 billion
2024* $159 billion
2025* $173 billion

Broken down by segment, video entertainment holds the single largest share of the market.

Although, this figure is dropping:

Year Video Entertainment Home Security Smart Speaker Others
2018 48.2% 15.2% 15.5% 21.1%
2019 41.7% 19.2% 16.5% 22.5%
2020 37% 20.5% 16.3% 26.2%
2023* 29.9% 22.1% 14.3% 33.7%
2024* 31.3% 21.1% 14.1% 33.5%
2025* 27.6% 21.2% 14.4% 36.9%

Home security is one of the fastest-growing segments within the smart home space.

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Here are the numbers:

Year Global Smart Home Security Revenue
2018 $2.14 billion
2019 $2.6 billion
2020 $2.49 billion
2021 $2.69 billion
2022* $3.27 billion
2023* $4.3 billion
2025* $5.05 billion

*Predicted figures

While digital voice assistants are expected to double from around 4.2 billion in 2020 to 8.4 billion in 2024.

Sources: Strategy Analytics, IDC, BRC, Juniper Research

Conclusion

The smart home market is growing quickly in value year over year.

And an increased adoption of smart home products only facilitates the ability to acquire a truly connected home, further elevating the market.