[223+ Pages Report] According to Facts and Factors, the global smart home as a service market size was valued at USD 10.46 billion in 2022 and is predicted to surpass USD 25.15 billion by the end of 2023. The smart home as a service industry is expected to grow by a CAGR of 11.54%.
Smart home as a service (SHAAS) refers to the delivery of smart home solutions to consumers via a service-based model on a subscription or a pay-per-use basis. Instead of buying particular home devices straight once a time, the smart home as a service solution helps consumers access a diverse range of smart home functionalities through a service provider on a recurring fee. It helps consumers to avoid high upfront costs in buying these smart home devices.
Also, there is a high degree of flexibility, which helps consumers to choose the devices according to their own preferences in the package as per their requirements. Moreover, these devices offer easy integration with other devices to help consumers work seamlessly and experience a holistic smart home environment.
The home automation business sector is revolutionizing the market. The market covers low-cost, entry-level range, and premium home automation solutions, which is the reason for the high growth rate of the global smart home as a service market. Also, a growing number of businesses are entering the market because of the immense potential in the industry.
For instance, the ability to control home devices remotely via smart devices is appealing to a broad range of customers, thereby offering convenience, security, energy, efficiency, and comfort to people. For instance, Mosaic Acquisition Corp and Vivint Smart Home jointly announced a merger in January 2020. The major goal of the organization is to enhance the smart home platform.
Data privacy and security features are a major concern for consumers. The interconnectivity of various devices poses a risk of possible data breach. Therefore, it is expected to slow down the growth trajectory of the smart home as a service industry.
Moreover, the lack of proper understanding of the technology and functionality of smart home solutions further poses a huge risk to a number of data breaches and cyber-attacks, which in turn will negatively impact the growth of the industry.
Changing lifestyles because of various factors like busier schedules, increased urbanization, and several others have significantly transformed the lives of people. However, it has led to a greater demand for solutions that offer convenience and help people streamline their daily tasks within homes.
Moreover, the emergence of artificial intelligence, automation, and machine learning has significantly led to the development of more sophisticated smart home solutions that further appeal to a broader range of consumers. However, such a landscape is expected to foster huge opportunities for the smart home as a service industry in the coming years.
For instance, Calix Inc. said to partner with IdeaTek to widen the scope of the Gigabit services to subscribers to integrate its smart home devices with its home Wi-Fi and cloud-based services easier in April 2019.
These smart home solution technologies require a proper skill set to integrate and set up the devices for use. This integration, complexity, and installation challenges further discourage potential consumers from opting for these smart home solutions. Therefore, such a poor user experience can emerge as a big challenge in the global smart home as a service market.
The global smart home as a service market can be segmented into solutions, services, types, and regions.
By solution, the market can be segmented into integrated solutions, energy management & climate, audio-visual & entertainment, lighting & window, security & access. The security and access solution segment is anticipated to register a high CAGR during the projected period.
The increasing awareness and concerns for home security among people globally are likely to be the major factors driving the growth of the smart home as a service industry. Homeowners are looking forward to smart home solutions with strong security measures like access control systems, surveillance cameras, and smart locks to secure their homes.
Also, the technological advancements in the security system sector, like the introduction of AI-powered surveillance biometrics, access control, remote monitoring, and several others, will improve the effectiveness of the solutions and thereby drive more attraction to security systems. The improvements in the remote monitoring and control of home security systems via mobile devices have also significantly revolutionized the market landscape, and it is expected to increase the adoption of the solutions.
By service, the market can be segmented into integrated services and managed services. The integrated services segment is expected to witness notable growth in the forthcoming years. Consumers are looking forward to a unified and seamless experience in managing smart devices, which is a fueling factor in the growth of the segment.
These integrated services offer a single interface platform to manage and monitor various home appliances such as entertainment, temperature, lighting, security, and many more with ease.
Additionally, the fast proliferation of Internet of Things (IoT) technology in smartphone devices has significantly optimized these devices. Consumers are demanding convenience solutions with high compatibility features across different devices.
By type, the market can be segmented into IoT services for smart appliances, IoT services for security & surveillance equipment, and IoT services for control & connectivity devices. The IoT services for smart appliances segment is likely to swipe the largest share of the global smart home as a service market.
The fast integration of IoT technology in appliances like smart thermostats, washing machine refrigerators, kitchen plants, and several other household devices is expected to accentuate the growth of the segment in the forthcoming years. Moreover, smart appliances improve convenience by offering advanced features like energy, efficiency, remote monitoring, and control, thereby swiping a larger customer base with more streamlined household management.
Market Size in 2022
USD 10.46 Billion
Projected Market Size in 2030
USD 25.15 Billion
CAGR Growth Rate
Key Market Players
Amazon, Google (Alphabet Inc.), Apple, Samsung, ADT, Vivint, Comcast, Honeywell, Siemens, and Others.
By Solutions, By Services, By Types, and Region
Major Regions Covered
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
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North America accounts for the largest share of the global smart home as a service market because of the strong position of the region across several industries. Also, the consumers in the region are the early adopters of advanced technology, and thereby, there is a wide scope of smart home devices and systems in the region.
Also, some of the largest technology companies, including Apple, Amazon, and Google, are headquartered in North America, which further gives a competitive advantage to the region as compared to others. These companies are actively investing in smart home technologies and services to capture a larger customer base in the region.
Moreover, the region holds a major market for smart home technologies because of the high disposable income of people, along with the presence of tech-savvy consumers. Also, the regulatory environment in the region is quite supportive, which helps established companies, as well as emerging start-ups, stabilize their business in the market with affordable financial support and consumer protection measures to promote trust in smart home products and services.
Asia Pacific is also likely to see a steady growth rate in the forthcoming years because of the growing middle-class population in the region across South Korea, Japan, China, India, and other Southeast Asian nations. Also, the region is known for its talented and skilled workforce which in turn is fostering innovation and technology. International and domestic companies are investing in the region because of the presence of the immense potential in developing smart home solutions ideal to the diverse preferences and needs of the consumers in the region.
The high rate of urbanization is another major factor driving the demand for smart home solutions. People are highly influenced by western culture and are posing a huge demand for smart home technology that offers high efficiency and convenience to align with the modern lifestyle of the urban population.
For instance, Comcast Corporation acquired Masergy in October 2021. The acquisition is likely to boost the company’s business in regions like the United States and strengthen its overall channel distribution system.
The key leaders in the global smart home as a service market include:
For instance, Abode Systems joined HelloTech in February 2019 for professional security system installations. These services start with ‘do-it-for-me’ installation services with the aim to expand services and support features in the future.
The global smart home as a service market is segmented as follows:
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