Smart home market could be worth more than €100 billion by 2031
Guidehouse Insights has published a detailed report, Market Data: Smart Home IOT, which examines the future of the smart home market.
With markets starting to return to pre-Covid-19 stability, smart home devices are predicted to grow in popularity. A new report from Guidehouse Insights forecasts the global smart home market growing to approximately €105 billion ($109.6 billion) by the year 2031. The market is currently worth around €28.5 billion ($29.7 billion) in 2022, meaning there would be a compound annual growth rate of 15.6% to reach the valuation.
“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.”
Guidehouse Insights identifies interoperability and device compatibility as market barriers to growth within the global smart home market.
The IFA Newsroom has previously reported the rise of Matter, a protocol developed by the Connectivity Standards Alliance, and supported by major players including Amazon, Apple and Google, which aims to offer interoperability among devices from different manufacturers. Widespread adoption of Matter by manufacturers could help ease this market barrier and help guarantee more growth.
Version 1.0 of the Matter smart home standard and certification was launched in October 2022, with hundreds of hardware and software products already receiving certification.