Market barriers include interoperability and device compatibility
BOULDER, Col., Oct. 27, 2022 /PRNewswire/ — A new report from Guidehouse Insights explores the global market for smart home devices.
While the smart home market is relatively established, growth outside its primary niche of affluent homeowners has remained slow. Factors include the price of smart home devices compared to normal versions, and lingering confusion over whether a given device will work with others that the user has already bought. Now, with many markets opening up after the Covid-19 pandemic, smart home devices are poised to grow in popularity. According to a new report from Guidehouse Insights, the global smart home market is expected to grow from $29.7 billion in 2022 to $109.6 billion in 2031, for a compound annual growth rate (CAGR) of 15.6%.
“The Covid-19 pandemic created financial uncertainty for many potential smart home consumers who lost jobs or experienced other financial disruption,” says Francesco Radicati, senior research analyst with Guidehouse Insights. “However, for those whose jobs turned fully remote during the shelter-in-place orders of 2020, the pandemic became an opportunity to try out new devices, whether for their own interest, home security, or to save energy now that they were using more home electricity and heating or cooling (or both) each workday.”
A key barrier to adopting smart home devices and platforms has been interoperability and device compatibility. With regard to interoperability, the industry is mostly aligned behind a new protocol, Matter, which launched in October 2022. Matter was developed by the Connectivity Standards Alliance (formerly the Zigbee Alliance) and has buy-in from major smart home device manufacturers including Amazon, Apple, Google, and Samsung. Now that it has launched, Matter is expected to boost uptake of the smart home by offering easy interoperability among devices from different manufacturers, according to the report.
the report, Market Data: Smart Home IoTexamines how the smart home device market will develop across the main regions of North America, Europeand Asia Pacific, with analyzes for the ten-year period between 2022 and 2031, segmented by region and product type. It also looks at how different device categories will grow or decline in popularity as consumers become more acquainted with smart home technology. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has approximately 16,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Market Data: Smart Home IoT, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
SOURCE Guidehouse Insights