Number of Smart Homes Will Reached 120 Million
According to a research report recently published by Berg Insight, the total number of smart home devices in Europe and North America has reached 120.5 million in 2022. It will keep exploding in future.
As we know, the North American market leads smart home penetration rate, with 39.2 percent of households in the region owning at least one smart home product or system by the end of the year(2022). Total number comes to 57.5 million smart homes. In 2022, the number of smart homes in North America grew by 12.0 percent compared to the previous year. With the strong momentum ,this market growth is expected to continue over the next five years, with Berg Insight estimating that by 2027, approximately 88.1 million homes in North America will be smart connected, accounting for 58 percent of all homes in the region.
But the European market lags slightly behind North America about penetration rate, it still saw a total of 63.1 million smart homes by the end of 2022. Berg Insight forecasts that the number of smart homes in Europe will reach approximately 112.8 million by the end of 2027, representing a market penetration of nearly 47 percent.
Among the most popular smart home products are smart thermostats, smart light bulbs, smart security cameras, smart door locks, smart plugs, and smart speakers. These products have witnessed massive sales and are offered by established OEMs such as Signify, Resideo, Danfoss, Belkin, Chamberlain, Assa Abloy, as well as newer players like Ecobee, Mysa, Nuki, Arlo, Netatmo, and Wyze Labs. The whole-home systems segment is served by traditional home automation specialists, home security providers, telecom operators, and DIY solution providers. In North America, interactive home security systems have gained popularity as one of the most common types of smart home systems, with ADT, Vivint, Comcast, and Telus being the largest providers. In Europe, traditional home automation systems and DIY solutions dominate the whole-home systems market, with eQ-3, Centrica, Verisure, and Somfy considered the major vendors in the region. As of the end of 2022, the installed base of whole-home systems in Europe and North America stood at 26.5 million systems and 35.7 million systems, respectively.
The smart home market continues to experience growth as more consumers recognize the value of connected products and systems. The development of new products, services, and connectivity standards that facilitate device setup and control across different vendors is further driving market expansion. Additionally, industry collaborations like the Home Connectivity Alliance (HCA) aim to simplify device control for end-users. The recent surge in electricity prices has also created a demand for smart home solutions that can help households reduce their energy consumption. Consequently, smart air conditioners, heat pumps, thermostats, and other energy-saving products are anticipated to gain popularity in the coming years, according to Mr. Backman, a representative from Berg Insight.