LONDON, July 2, 2024 /PRNewswire/ — The smart home market is growing steadily, moving from novelty implementations to mass adoption. New product lines and professional subscription services are evolving to ease adoption and expand the consumer base to retrofit installations and new residential developments. According to a new report from global technology intelligence company ABI Research, shipments of smart home devices for energy management – specifically smart thermostats, smart lights and smart plugs – are expected to grow from 230.9 million in 2024 to more than 584 million in 2030.
“Western European households will lead the adoption of energy-efficient smart home devices, followed by those in North America. The rate and speed of adoption will depend on many factors, including the rise in home Wi-Fi connectivity, price range of devices, installation type, and customer service,” explains Ritika Thomas, senior sustainable technology analyst at ABI Research. “Global energy regulations, eco-bonuses, and subsidies in Europe (especially France, Germany, and Italy) will further drive adoption over the forecast period, creating opportunities in the retrofit market over new builds.”
As the fragmented smart home industry matures, established large brands are strengthening their offerings by acquiring smaller companies with niche expertise. Currently, the ecosystem is fragmented with no overall dominant player and a large disconnect between product marketing, market hype, consumer adoption and purchasing power. Data privacy, security, sustainability, convenience, energy savings and interoperability with existing devices are strategic considerations used by vendors to increase customer satisfaction and ensure vendor retention. The smart thermostat sector will have the greatest impact on residential energy consumption, with over 45% adoption in Western European and North American homes and 67.2 million devices shipped worldwide by 2030.
Google, Honeywell, Amazon, and Ecobee account for over 60% of the global market share of smart thermostats, which are primarily installed in single-family homes. Other smart thermostat vendors include Carrier, Schneider Electric, Netamo, Samsung, Siemens, and LeGrand & Tado GMbh.
“As the smart home market matures, consumers will become more tech-savvy and will compare product performance. Vendors will need to prioritize customer engagement, ease of installation, and proven use cases, and employ artificial intelligence (AI), machine learning (ML), and data analytics to deliver unobtrusive yet improved user experiences to stay ahead of the competition,” Thomas concludes.
These findings are from ABI Research's Smart Home Hardware for Energy Management report, which is part of the company's Smart Buildings and Consumer Technology research service and includes research, data and analyst insights.
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