This report provides Transforma Insights’ view on the Smart Home market. This segment comprises ten sub-applications including Baby Alarms, Consumer Webcams, Home Fitness Equipment, Home Weather Stations, Household VoIP Phones, Mirror Screens, Photo Frames, Kitchen Equipment, Fixtures & Fittings, and Other Consumer.
One of the principal drivers for smart home devices has been the improved user experience that connected devices offer in comparison to a non-connected equivalent. Many smart home devices gained traction during the COVID-19 pandemic with consumers spending more time indoors and entertaining themselves at home. This has propelled demand for devices such as consumer webcams, household VoIP phones, smart fitness mirrors, and smart coffee makers. Other drivers have been evolving consumer lifestyles, the rising number of women in the workforce, and the greater convenience and control that many devices enable.
Many smart home devices require high-speed internet, their presence in the home means that Wi-Fi and Ethernet are both common, although some devices will make use of cellular. Bluetooth connectivity is common too, for pairing with other devices and smartphones. The Matter consortium and the Thread protocol are likely to accelerate the prospects of growth and adoption of smart home devices through greater interoperability and an open ecosystem of vendors and developers.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue.
A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
The report examines key factors that are influencing the development of the market, including:
This section of the report has been further divided into the following subsections.
This subsection explains how remote software upgrades are a major driver for smart home products and their benefits, such as providing access to new consumer features. It also discusses the difficulties associated with remote software upgrades and talks about how this market received a major boost during the COVID-19 pandemic.
This subsection charts the connectivity technologies (including Wi-Fi, Ethernet, Bluetooth technology, and cellular communication) that many smart home devices rely on to remain compatible with smartphones.
This subsection defines Matter and Thread, and then explains how the use of both these solutions has accelerated the prospects of growth and adoption of smart home devices.
It explains how consumer webcams and baby monitors are susceptible to security threats (like hacking) and how vendors such as Nest and Hangzhou Xiongmai have both suffered from high-profile security breaches in the past.
This subsection expounds upon the availability of alternatives to smart home devices. For instance, baby cameras can be replaced by security cameras or webcams. Similarly, smartphones can be used instead of mirror screens and VoIP phones, and local weather information is readily available for home weather station users.
This section of the report describes what baby alarms or monitors are in general, and then it engages in a comparison between traditional baby alarms (along with their features and drawbacks) with the upgraded versions of baby alarms (like the Miku baby monitor) and their features.
It focusses on the communication technologies that are currently used to support these baby alarms (like Wi-Fi and Bluetooth). It also comments on the use of high-frequency RF communication technology, previously used by non-connected baby alarms, and the challenges they faced.
This subsection focusses on some of the pressing challenges of baby alarms (including privacy) and explores how baby wearables (like Halo10) can be an alternative to these alarms. It also describes some baby alarms currently available in the market including Nanit Pro Baby Monitor and Cubo AI Plus.
This section explains how the demand for webcams has increased significantly (especially since the Covid-19 pandemic), their features, challenges (like the availability of similar products such as cameras and doorbells), and then describes one example of a consumer webcam.
This section of the report first talks about how the pandemic increased the sale of home fitness equipment and then discusses the advantages of connectivity in this space. It also talks about factors such as space requirement and prohibitive cost which may affect their adoption.
It explains how the availability of new revenue streams for manufacturers will be a big driver to this market and gives a few examples of connected home fitness equipment, including Nordic Track Commercial X32I and Hydrow Rower.
This section explains how home weather stations function and their benefits in general. It then shifts its focus to connected weather stations, states their advantages, describes their components and how they function, charts their price range, and lists the barriers hampering their adoption (such as the availability of weather apps). It also talks about some common products in this application like Legrand Netatmo Weather Stations.
This section first describes what VoIP (Voice over Internet Protocol) is, and then lists some of its features (like increased portability), before explaining why its adoption is gaining significant momentum in countries such as the UK and France. It then explains how the pandemic increased its demand and the challenges it currently faces. It also adds some popular examples of Household VoIP Phones, like 1-VoIP Residential and AXvoice.
This section begins with the features of smart mirrors (like being equipped with cameras to track users – especially in the mirrors used for fitness) and discusses factors like their cost, which limit the size of the market significantly. It also describes some popular examples of mirror screens like Capstone Smart Mirror and Echelon Reflect Smart Mirror.
This section explains how digital photo frames are different from traditional photo frames, their features (like being equipped with Wi-Fi connectivity), price range, and the barriers towards their adoption (such as the availability of more sophisticated devices). It also discusses a few photo frame offerings including Nixplay smart photo frames and Aura smart photo frames.
This section of the report first explains what “Kitchen Equipment” comprises, and then charts their features. It then focusses on one of the most popular products in this application – smart coffee makers and talks about their features (like being able to be integrated with virtual assistants like Google Assistant) and benefits. It also describes a few products from this application, including Chef IQ Smart Thermometer and Philips Smart Air Fryer.
This section of the report first describes what all are included under “Smart fixtures and fittings” (including showers, toilets and more), alludes to the connectivity technology these devices use, and states their features (in the context of smart toilets). It also gives a few examples of the relevant products in this application, such as Kohler Numi Smart Toilet.
This section of the report first charts what other consumer smart home devices comprise, discusses their common features and uses, and the factors that have increased their demand. It also describes a few examples of Other Consumer products, including Sure Flap Dual Scan Microchip Cat Flap, Oral-B Pro 3 Toothbrush, and Rachio 3.
The key vendors section lists some of the main providers of products and services related to the market such as Bosch, Lenovo, ChefIQ, and Kohler. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of smart home devices, which will grow from 300 million in 2023 to 1.2 billion in 2033.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the smart home application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Smart Home Application Group will grow at a CAGR of 12%.
