According to a recent report by Berg Insight, the smart home market in Europe and North America is experiencing significant growth, with 126.2 million smart homes recorded in 2023. North America leads in market penetration, with 41% of households having at least one smart home product, totaling 60.8 million homes. By 2028, this number is expected to rise to 83.8 million, representing 55% of North American homes.
Europe, while slightly behind, is also showing strong growth. In 2023, there were 65.5 million smart homes in Europe, equating to a 28% market penetration. Projections indicate that by 2028, this number will increase to 101.2 million, or 42% of European homes.
Popular smart home products include thermostats, light bulbs, security cameras, door locks, speakers, and floor cleaning robots. These are offered by both established companies and newer entrants in the market.
In North America, interactive home security systems are particularly common, with providers like ADT and Vivint leading the market. Europe tends to favor traditional home automation systems and DIY solutions, with companies like eQ-3 and Shelly at the forefront.
Despite a slowdown in 2023 due to economic factors, the smart home market is expected to rebound in 2024 and continue growing. The industry is focusing on developing seamlessly integrated devices and simplifying the setup process for consumers. The Matter standard, despite initial challenges, is anticipated to play a unifying role in the market’s future.
Overall, the trend towards increasingly connected and advanced homes is expected to continue, driven by consumer demand for enhanced security, cost savings, and convenience.
More information on smart home growth is available here.
Another recently released smart home report is the Association for Smarter Homes & Buildings (ASHB) 2024 Smart Home Trends & Technology Adoption report.
Key Findings:
Consumer Awareness and Adoption: The report indicates a significant increase in consumer awareness of smart home technologies, with over 70% of surveyed individuals expressing familiarity with various smart devices. However, actual adoption rates remain lower, highlighting a gap between awareness and usage.
Barriers to Adoption: Major barriers identified include concerns about privacy and data security, with 65% of respondents citing these issues as primary deterrents to purchasing smart home products. Additionally, the complexity of installation and integration with existing systems poses challenges for many consumers.
Desire for Interoperability: Consumers are increasingly seeking devices that can work seamlessly together. The report emphasizes the demand for improved interoperability among different brands and products, which is crucial for enhancing user experience and encouraging broader adoption.
Smart Home Hubs: The study highlights a shift towards more versatile smart home hubs that facilitate easier control of multiple devices. Users prefer hubs that offer intuitive interfaces and support a wide range of devices, indicating a trend towards centralized management solutions.
Energy Management Focus: There is a growing interest in smart home technologies that contribute to energy efficiency. Many consumers are motivated by the potential for cost savings and environmental benefits, with energy management features becoming a significant selling point for smart home products.
Future Trends: The report predicts that advancements in artificial intelligence and machine learning will drive the next wave of innovation in smart homes. These technologies are expected to enhance automation capabilities, making homes smarter and more responsive to user needs.
The ASHB report underscores the need for industry stakeholders to address consumer concerns about privacy and interoperability while leveraging emerging technologies to foster greater adoption of smart home solutions. By focusing on these areas, companies can better align their offerings with consumer expectations and drive growth in the smart home market.
More information on the ASHB 2024 Smart Home Trends & Technology Adoption report can be found here.
Image: https://iotbusinessnews.com/2024/10/24/09519-close-to-50-percent-of-european-and-north-american-homes-will-be-smart-by-2028/
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