Global Smart Home Market Expected to Reach Nearly $110 Billion by 2031

A new report from Guidehouse Insights explores the global market for smart home devices. 

While the smart home market is relatively established, growth outside its primary niche of affluent homeowners has remained slow. Factors include the price of smart home devices compared to normal versions, and lingering confusion over whether a given device will work with others that the user has already bought. Now, with many markets opening up after the Covid-19 pandemic, smart home devices are poised to grow in popularity. According to a new report from Guidehouse Insights, the global smart home market is expected to grow from $29.7 billion in 2022 to $109.6 billion in 2031, for a compound annual growth rate (CAGR) of 15.6%.

“The Covid-19 pandemic created financial uncertainty for many potential smart home consumers who lost jobs or experienced other financial disruption,” says Francesco Radicati, senior research analyst with Guidehouse Insights. “However, for those whose jobs turned fully remote during the shelter-in-place orders of 2020, the pandemic became an opportunity to try out new devices, whether for their own interest, home security, or to save energy now that they were using more home electricity and heating or cooling (or both) each workday.”

A key barrier to adopting smart home devices and platforms has been interoperability and device compatibility. With regard to interoperability, the industry is mostly aligned behind a new protocol, Matter, which launched in October 2022. Matter was developed by the Connectivity Standards Alliance (formerly the Zigbee Alliance) and has buy-in from major smart home device manufacturers including Amazon, Apple, Google, and Samsung. Now that it has launched, Matter is expected to boost uptake of the smart home by offering easy interoperability among devices from different manufacturers, according to the report.

The report, Market Data: Smart Home IoT, examines how the smart home device market will develop across the main regions of North America, Europe, and Asia Pacific, with analyses for the ten-year period between 2022 and 2031, segmented by region and product type. It also looks at how different device categories will grow or decline in popularity as consumers become more acquainted with smart home technology. An executive summary of the report is available for free download on the Guidehouse Insights website.

Contact: 

Cecile Fradkin
cfradkin@scprgroup.com

*The information contained in this press release concerning the report, Market Data: Smart Home IoT, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.