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Global Smart Home Devices Market
Dublin, Sept. 01, 2022 (GLOBE NEWSWIRE) -- The "Global Smart Home Devices Market Report 2022, by Technology, by Application, by Sales Channel" report has been added to ResearchAndMarkets.com's offering.
The global smart home devices market is expected to grow from $78.44 billion in 2021 to $92.48 billion in 2022 at a compound annual growth rate (CAGR) of 17.9%. The market is expected to reach $176.10 billion in 2026 at a CAGR of 17.5%.
The rise in the need to save energy and decrease carbon emission drives the smart home devices market. This increase in the need for sustainable solution has been initiated by strict government regulations that introduced a cap on maximum carbon emissions allowed for each company. Conventional devices continuously use electricity until someone turns them off.
However, in the case of smart home devices, they are equipped with motion sensors which can detect the absence of people in the room for given time and automatically turn off, thus saving money and electricity. Saving unnecessary usage of electric devices and decreasing the power demand on the power plants help reduce carbon emission. For example, according to a study in Europe in 2021, smart building technology can save up to 23% of the energy use in office buildings.
High switching costs restrains the smart home device market growth. The cost of smart appliances is high and involves other upfront costs like installation and maintenance cost as well. The high cost obstructs adoption and acceptance of smart devices by the customers including many organizations. According to the survey released by Parks Association in 2021, 44% of the households of the 46.7 million household participants stated that the smart devices are too expensive. Moreover, a smart thermostat in the USA costs around $250 whereas the traditional thermostat cost around $25. The cost factor influences the market negatively.
Companies are developing voice assistants to control smart home devices. Voice assistants are digital assistants that react to voice commands and reply with relevant information. They are different from the traditional keyboard-based searches. They put more focus on the conversational phrasing of any content and prioritize the long tail keywords for any search. For example, Amazon and Google have launched their own voice assistants in their respective smart speakers. Amazon has launched Alexa Voice Assistant in its Echo smart speaker while Google has launched 'Google Assistant' voice assistant for its Google Home smart speaker.