US leading the global smart home market

The influence of the smart home on security is well documented, as consumer awareness of what is available in the home, from security to home automation to energy savings, continues to drive the purchase of smart home and security products, services and support.

The latest research on the smart home shows the U.S. is leading a global smart home market that is estimated to climb from $91 billion this year to $158 billion by 2024, growing at a CAGR of 15 percent in the next four years, according to data gathered by PreciseSecurity.com. Moreover, household penetration will climb from 9.3 percent this year to 19.3 percent by 2024.

Houseowners worldwide will spend $19.4 billion on security systems this year, with smart security cameras and smart locks as the leading products. This amount is expected to double and reach $35.6 billion value in the next four years. The number of active households in the security segment is forecast to hit 196.9 million by 2024.

Analyzed by geography, the U.S. is the largest smart home market in the world with $27.6 billion in revenue this year, followed by China at $20.8 billion, Germany and the United Kingdom at $4.8 billion and Japan at $4.7 billion.

The report noted that the global smart-home ecosystem is set to continue its rapid expansion mostly due to the speed of 5G implementation, as well as recent IoT investments by Google, Apple and Amazon, which have “transformed the landscape noticeably, providing opportunities for various companies.”

Interestingly, the 2020 data show that one-third of smart home device owners are Millennials.

Divided by categories, smart appliances generate the most significant share of the overall market income. Global consumers are forecast to spend $21.5 billion this year on devices they can connect to smartphones or tablets for better control, convenience and information. This segment of the market is expected to jump to $39.6 billion by 2024.

With $21.1 billion profit in 2020, control and connectivity devices represent the second most popular consumer choice.

The energy management solutions are forecast to generate $7.2 billion income this year and jump to $12.4 billion by 2024.