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Digital has become the most preferred medium of communication today. While it facilitates communication between two individuals, it has also opened avenues for humans to communicate with gadgets. For instance, one could switch on his bathroom’s geyser while driving back home from work, and instantly step into the shower. These are called smart devices and fall under the global smart home market.
In the last few years, the global smart home market has caught pace, thanks to the surge in consumption of smartphones and internet. A Transparency Market Research Study analyzes the global smart home market and predicts that the market would grow at an astounding CAGR of 18.4% during the forecast period. The global smart home market was valued at US$36.27bn in 2017, analysts at TMR cite in the report.
The robust technological innovations and the introduction of newer technologies have a large impact on day-to-day life. Especially, in the developed region like North America, where the early adoption of technologies is observed and considered as a key trend. Adoption of advanced technologies in countries like the U.S. is helping the region to accumulate large revenue share.
North America to be Dominant in the Smart Home Market
North America procured about 41.9% share in 2017 in the smart home market, TMR estimates. Increasing adoption of home healthcare in North America is augmenting demand for smart home assistance and fuelling growth of the global smart home market. Europe is expected to accumulate the second-leading share in the revenue of the global smart homes market. This growth is primarily due to the rising adoption of green buildings coupled with rising concerns over energy consumption. The smart home systems are witnessing higher adoption from the U.K., France, Germany, and Italy as the governments in these countries are implementing several regulations for energy consumption.
Moreover, rising smart city projects in developing countries across Asia Pacific are highly responsible for the most lucrative growth in the region. The changing lifestyle scenarios in China, Japan, and India are creating large opportunities for key players and are expected to remain the same for the next few years. Additionally, rising consumption and need for energy and electricity in the region is augmenting demand for the energy-efficient devices. These devices offer comfort and easy mobility, consequently influencing growth of the market in Asia Pacific.
Furthermore, the smart home market is witnessing growth on the back of advancements in Internet of Things (IoT) systems and increasing adoption of consumer electronics. Thanks to these factors, analysts at TMR estimate that the market is likely to expand at a CAGR of 18.4% over the forecast period from 2018 to 2026.
Innovation in Technology to Spell Growth in Future
Today most smart home devices are operated by a click on the smartphone or via voice command. With concepts like virtual reality and augmented reality already integrated in connected devices, the future of smart phone will be driven by these latest technology. Imagine switching on the fan by tapping your finger in the air. Or swaying your palm down to switch on your read toaster. Would it not be innovative? Technology giants are already working on developing such techniques that could not only attract humans, but also make life simpler than ever. Such aspects are fueling growth in the global smart home market.