A few decades ago, the concept of home automation was alien, but is now a reality. Home automation typically originates from smart home appliances, which has undergone considerable changes over the years, and has led to the emergence of integrated smart homes. Smart home technologies are now affordable, and most households use some form of smart appliance. The world of home automation is changing and converging, with Internet of Things (IoT) being increasingly used for driving smart home-use technologies. IoT has transformed every home appliance into a sensor, making it capable of sensing, analyzing, disseminating, and communicating information.

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Global Smart Home Market (2018-2023)
January 2019 | 90-100 Pages | SKU: 201864

Growing adoption of IoT in smart homes

By 2025, 10% of households across the globe is estimated to become smart homes. The global smart home market is expected to reach a value of USD 151 Bn by 2023, according to Research on Global Markets. Though majority of this growth arises from end-user-facing applications, there is a growing need for IoT platforms to build a complete ecosystem connecting operators and enterprise networks. Currently, there are about 450 IoT platforms and 21% of them focus on the home segment.

People are becoming increasingly reliant on wireless cellular networks to monitor and control devices in their smart homes. Owing to this growing dependence, the cellular network technology segment of the global smart home market is expected to witness the highest compound annual growth rate (CAGR) (34.7%) till 2023, according to Research on Global Markets. This expansion of cellular network technologies is expected to be further bolstered by the imminent launch of 5G technology, which will facilitate higher transmission rates, efficiency and speed. As the global smart home market witnesses increasing investments and continues to grow, there is an uptake of more IoT-driven smart home automation applications, each catering to specific purposes, including -

Saving energy costs

The average cost of electricity has increased by almost 29% in the last five years, and there are no signs of it slowing down. Smart homes, however, have been able to reduce expenditure on energy by a significant 20%, thanks to the integration of smart thermostats, carbon monoxide detectors, connected smoke alarms, security, and lighting systems within the smart home ecosystem. These smart home applications, which combine green technology with IoT, aim to reduce energy consumption in residential homes.

Optimising security

Unlike devices in traditional homes, smart home appliances store information, which can be vulnerable to data breaches. This is why secure IoT platforms, lightweight security software, and distributed smart home security services are in extremely high demand, and are integrated into every node of the system.

A study conducted by the International Data Corporation (IDC) estimates that IoT will generate more than 10% of the global data by 2020. Smart homes will continue to produce huge volumes of data, thanks to IoT-driven smart devices. These data could be gathered and analyzed by businesses across multiple industries to make crucial decisions.