Smart home market to grow to $53.45 billion by 2022 thanks to energy efficiency

Regardless of the concerns voiced by security professionals in the past year, especially linked to the proliferation of Mirai malware, IoT has opened the gates for an extremely competitive market and it won’t slow down. Manufacturers are going out of their way to release devices that appeal to the consumer.

In only five years, the global smart home market is forecast to grow to $53.45 billion, from about $24.10 billion now, registering a CAGR of at least 14.5 percent, by 2022, says a report from Zion Market Research.

The report analyzes both the global and regional smart home market and the opportunities offered as well as the limitations in categories including the smart kitchen, security and access control, lighting control, home healthcare and HVAC control.

The automation of every device in the home, such as security cameras, air conditioning, temperature sensors and basic appliances, will let users control their homes through a remote control, phone and biometrics, even from afar. The growth of the smart home market will mostly be driven by “consumer convenience, safety and security, and energy efficiency,” with light control and energy efficiency ranking as the most important. This interest will lead to a close relationship between smart homes and solar power systems as they will team up for more efficiency.

There’s a lot of money for manufacturers in IoT once users get the hang of it. However, automated devices are not cheap, which could lower public demand, making mass adoption of the smart home an extended process. Wide adoption could also be hindered by the lack of industry standards and awareness gap between markets.

The smart home market is still unknown territory; both users and manufacturers are exploring it for maximum gains, whether financial or commodity-wise. The most successful markets for smart home software and devices have so far been North American and Europe, but Asia-Pacific is quickly catching up as a result of modern residential projects and impressive growth in Japan, South Korea and China, expected to become top markets for smart homes.