Smart home services provide an integrated smart home experience through device installation, set up, monitoring and support services. Devices such as smart locks, security cameras, lighting, doorbells and thermostats allow remote access and control through applications. Smart home services enable convenience, security and energy efficiency for homeowners through automation of lights, appliances, HVAC and other systems. Growing demand for convenience, energy savings and home security is driving increased adoption of smart home devices and as a service models.
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 Dynamics:
Rising demand for home automation: Growing preference for automated control of devices and systems in the home through apps and voice assistants is driving demand for smart home services. Homeowners appreciate the convenience of remotely controlling lights, locks and thermostats. Property managers also benefit from the ability to remotely monitor properties. This rising demand for automation is expected to support growth of the smart home as a service market over the forecast period.
Growing adoption of IoT technology: Proliferation of IoT-enabled devices is enabling the concept of connected homes where appliances and systems can be controlled and monitored remotely. Increasing IoT adoption allows service providers to offer bundled plans for installation, maintenance and monitoring of various smart home devices. This growing installation of IoT-based devices and networks in homes worldwide is likely to boost the smart home as a service market.
Segment Analysis
The smart home as a service market can be segmented based on solutions, home type, and application. The solutions segment is further divided into professionals services and managed services. Managed services is currently dominating the segment due to the growing need of consumers for simplified and hassle-free smart home services. Professional services requires technical expertise to design, deploy and maintain smart home systems, while managed services handles all these functions remotely with minimal efforts from customers.
PEST Analysis
Political: Government policies and regulations support the growth of smart home technologies to enhance safety, energy savings and overall standards of living. Economic: Rising disposable incomes and rapid urbanization have increased the adoption of smart home solutions across residential and commercial sectors. Social: Changing consumer preferences towards convenience, security and efficiency are driving the demand. Technological: Advancements in IoT, wireless technologies, AI and 5G are allowing innovative new products and services in the market.
Key Takeaways
The Global Smart Home As A Service Market Share 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 currently dominates the market due to widespread early adoption. Growing concerns over energy savings, safety and independent living are fueling the growth in regions like Europe and Asia Pacific.
Key players operating in the smart home as a service market are ADT Inc., Vivint Smart Home, STANLEY Security, SimpliSafe, and Brinks Home Security. Key players are investing heavily in IoT and AI capabilities to deliver enhanced monitoring and controls to customers. They are also expanding their offerings and services globally to tap new growth opportunities.
