There are approximately 258.54 million smart homes in the world.
Keep reading to find new smart home statistics related to:
- Smart home industry
- How many smart homes are there in the world
- Smart appliances usage statistics
- Smart home security statistics
- Smart home technology trends
- Smart home demographics
- Home automation market size
- A whole lot more
Let’s dive right into the stats.
Key Smart Home Statistics and Trends:
- The global smart home market is estimated to be worth $99.41 billion in 2021. (Statista)
- The smart home security market generated $2.7 billion in revenue in 2021. (Statista)
- Consumers spent $62 billion on smart home devices in 2021. (Statista)
- Smart appliances generated $37.13 billion in revenue in 2021. (Statista)
- In 2020, the U.S. market for smart home technology was worth $79.13 billion. (Mordor Intelligence)
- There are approximately 258.54 million smart homes in the world. (Statista)
- The size of the smart home security market alone is $71 billion with an expected CAGR of 15.7%. (Grandview Research)
- Nearly 25.1 million smart home devices are shipped worldwide. (Mordor Intelligence)
- Nearly 33% of all smart home devices are used for security and lighting. (Inkwood Research)
- The cost of a connected home can range between $1,500 and $20,000. (Fixr.com)
- Smart thermostats saved homeowners about 10-12% on heating and 15% on cooling cost over a year. (The Smart Cave)
- At least 72% of all millennials said they are willing to pay more for a property that already has smart home systems installed. (Dream Casa)
- Nearly 88% of all smart home device users said that they are concerned over privacy issues and the potential for companies to use the devices to collect personal data. (Business Insider)
Global Home Automation Market Statistics
Smart home automation devices are available almost anywhere, and the number continues to grow. It seems like you can find a smart home device for almost anything that you want to do. Here are some of the most recent trends in the growth of the smart home market and where it is expected to go.
Overview Of The Smart Home Industry
How big is the global smart home automation market?
As of 2020, the global smart home automation market was worth $79.13 billion. This global market is expected to continue growing over the next several years.
What is the smart home automation market growth?
The home automation market is expected to be worth $313.95 billion by the year 2026.
Which country has the largest number of smart homes?
Currently, the United States is the number one country for smart home adoption.
Smart home technology continues to grow in developing nations, particularly India.
How big will the smart home market be in 2023?
Using the predictions from Mordor Intelligence, this places the market at around $139 billion in 2023.
You must consider that some forecasters have more optimistic predictions, while others have more pessimistic ones. This figure appears to be about the middle of the extremes.
How many smart homes are there in the world?
As of 2021 there are approximately 258.54 million smart homes in the world.
These devices include televisions, controllers for heating and air conditioning systems, security systems, and devices such as Amazon Alexa.
What percentage of homes are smart homes?
At present, approximately 12.2% of all homes in the world have some form of smart home technology or a home automation device.
How much do households spend every year on smart security systems?
A 2019 survey found that when homeowners in the United states renovate their home, they spend approximately $500 on smart home and smart security devices.
These devices include voice-assisted devices, video doorbells, and smart lights.
Smart surveillance cameras and video cameras are also a big factor in this growth. Market trends favor devices that combine several different smart security devices into a single package.
What is the market size of the smart security system industry?
According to a study by Grandview Research, the size of the smart home security camera market was $71 billion in 2019 with an expected CAGR of 15.7%.
One of the key factors in this trend is the adoption of smart home technology in developing countries around the globe.
Who are the key players in the smart home market?
By the size of their market share, the key players in the smart home market are:
- ABB Ltd.
- Schneider Electric SE
- Honeywell International, Inc.
- Emerson Electric Co.
- Siemens AG
What are the factors driving the smart home industry?
Several key factors are driving smart home automation adoption. One of them is the number of devices available.
Another is that they have the potential to provide solutions to some common problems.
One example is of good is the use of smart technology in assisted living and in the health care industry.
These devices can perform some of the tasks that routinely require human intervention. This helps to improve patient care and free staff time for more urgent issues.
Growth in smart security devices is another factor in the growth of the smart technology industry.
These devices are becoming more affordable as competition inspires innovation and the ability to offer devices at a competitive price.
What is the future of the smart home industry?
While some predictions are more optimistic, and others are more pessimistic, but almost all agree that the growth of smart home technology, especially security devices, is set for rapid expansion over the next five years.
As devices become more affordable, it is expected that this technology will be adopted at an increasing rate by developing nations.
With an emphasis on saving energy, the use of smart devices in HVAC control and energy management systems is another factor that is expected to increase global demand for smart technology.
Key Takeaway: The adoption of smart home technology and smart security devices is set to expand over the next five years. The market is still in its infancy with plenty of room for expansion in the future.
U.S. Smart Home Market Statistics
Currently, the United States is the biggest adopter of smart home technology with a growing market. The United States offers opportunities for growth and is a testing ground for overcoming the challenges that the industry faces in this growth. Here are a few key statistics that provide insight into the growth of the U.S, market for smart home devices.
What is the U.S. smart home market size?
As of 2018, there were 40.3 million smart homes in the United States. This number was up 24.4% from 2017 figures.
It also means that nearly 32% of all homes in the United States have some form of smart home device.
What is the CAGR of the U.S. smart home market?
The current CAGR (compound annual growth rate) of the smart home industry in the United States is 25.3%.
How many smart homes are there in the U.S?
As of 2019, some estimates placed the number of smart homes in the United States was 35 million, while others placed it higher.
When you consider the shipping of smart home devices in the United States, in 2020, 35.2 million smart home devices were shipped.
In these statistics, a smart home is defined as having at least one smart home automation device. It does not reflect the number of devices within the home beyond the use of a single device.
What is the smart home market share in the U.S?
As of 2021, smart home market penetration in the United States is around 40.1%.
Key Takeaway: The smart home market in the United States offers opportunities for growth.
These statistics only reflect the presence of one smart technology device in the home, but as people become more accustomed to these devices, the opportunity to have several in the home at once provides expanded market potential.
Smart Appliances Usage Statistics
As you can see, the market continues to grow in the United States and around the world. Now, let's take a look at who is buying these devices and how they are using them.
What percent of millennials in the U.S. use smart home products?
A recent study found that about 47% of all millennials in the United States have at least one smart home device.
The adoption of smart home devices is relatively high among millennials when compared to other age groups.
How many Americans save time using smart products?
In a study of smart device users, approximately 57% of them said that they use these devices to save time.
How many households in the U.S. have a smart speaker?
In a 2018 study that looked at only smart speakers, it was found that 8.2 million baby boomers use smart speakers as of 2018.
This is approximately 11.3% of all baby boomers, and it is a 28.6% jump from 2017.
How much money do people with smart homes save?
Smart home devices save you money in several different ways. One of them is that a smart security system can cut down on your insurance rate.
Another popular way homeowners use smart devices to save money is by using them to control their heating and air conditioning systems.
Smart home users who use the technology to control their heating and cooling report about a 50% energy savings when compared to those that do not use smart technology, but these estimates vary depending on the source.
Key Takeaway: Smart home use varies according to age and use. Millennials are ahead of baby boomers when it comes to smart technology in their homes, but adoption among baby boomers continues to rise.
Read More: Home Appliance Industry Statistics
Smart Home Security Statistics
Smart security systems are one of the most important categories in the growth of smart home technology and have been experiencing one of the fastest growth rates than other smart products. Let's see what the numbers have to say about this important trend.
How many households own a smart home security system?
According to a recent study by Mordor Intelligence, 25.1 million devices were shipped worldwide in 2019, and this number continues to go up.
The increase in smart home security systems is being driven by statistics that show increasing crime rates in many cities across the country.
One of the ways to measure the number of smart home security systems in use is through tracking shipments of the systems.
What percent of homeowners want their homes to have a smart security system?
Of the smart home devices available, 63% of homebuyers wanted smart locks and alarms.
The number of smart home security devices continues to rise, but what do home buyers want in a smart security system?
Statistics show that buyers do not expect smart security devices to be already included in older homes, but they do expect it in new construction.
How much more likely will consumers purchase a new home that has smart technology?
A survey of homebuyers indicated that buyers were 81% more likely to buy a home if smart home products were already installed in them.
Can a smart home be hacked?
The potential for getting hacked is one of the objections that some consumers have about smart homes. Unfortunately, they can be hacked just like any other computer system.
Several factors work as a deterrent to hacking smart home devices. The first is that, at this point, hackers have not found a way to make money by hacking smart home devices, so they have little motivation to do so.
Also, most smart home systems are connected to Wi-Fi at the house, and the hacker would have to be in close proximity to the signal.
There are some simple things that you can do to protect your smart systems from getting hacked, and many of these are similar to things you can do to keep your computer from falling prey to hackers, too.
- Avoid having multiple devices connected to the same service provider
- Do not allow public Wi-Fi on your device
- Use different type of authentication for every device
- Keep your systems updated
- Make sure you have malware protection installed on your devices
Key Takeaway: Security is a big factor in the growth of smart home devices. Many consumers would be more willing to purchase a home that already has smart security installed. Smart home devices can be hacked just like any other computer system, but there are some measures you can take to protect yourself.
Smart Home Demographics
There are a lot of statistics about smart home demographics. This section will cover who is buying smart homes and smart home appliances, and if men or women buy these related products more.
How old are people who own a smart home?
According to a recent survey by AARP, adoption of many types of smart devices and technology has increased in older demographics.
The adoption of home assistants and smart speakers is around 21% of those aged 18-49.
This is compared to 17% of those aged 50 and older. The adoption of this technology is surprisingly close in both age groups.
When you look at smart home technology, these numbers have shown a remarkable convergence.
In 2017, smart home adoption among those 18-49 was at 17% and only 7% among those 50 and older. By 2019, trends toward smart home adoption converged at 19% for the younger group and 17% for the older age group.
What percent of Americans already own or plan to buy smart home technology?
Device ownership and desire to buy smart home technology differ by age and device.
For instance, 59% of those over the age of 50 said that they would like to have a device that allows them to see who is at your door or in your driveway. Only 9% said that they actually own one of these devices.
When it comes to devices that tell you when a door or window is opened or closed, 48% said they would like to have one of these devices, but only 12% actually own them.
Among Millennials, 87% said they use smart devices at least once a day.
What percent of millennials are willing to pay more for a smart home?
At least 72% of all millennials said they are willing to pay more for a property that already has smart home systems installed. They said they would pay as much as $1,500 more.
Approximately 44% said they would pay up to $3,000 more. Smart sellers and realtors who want to appeal to the tech-savvy younger generations might want to consider a few smart home improvements.
Do more men or women own smart home systems?
Smart home products were generally more widely adopted by women than men, except for Smart TV and Smart TV plug-in projects.
Among these devices, ownership among males was around 75% and around 68% for females. One of the factors that might affect smart home device adoption by women is that many of the smart devices are connected to the kitchen, laundry, and other tasks around the home.
Key Takeaway: Younger generations are ahead of older ones when it comes to smart home adoption, but older adults are quickly closing the gap.
When you look at demographics and device use, it is important to consider who the products target and who is targeted in the advertising.
Smart Home Advantages
Now, let’s take a look at why people buy smart home devices and the benefits that they bring to homeowners. In this section you'll learn if smart home appliances can save users money, time, and if they can increase the likelihood that the house will get sold.
What percent of people who use smart devices save time?
Nearly 57% of people who use smart home devices said that they saved time by using them.
They estimated that approximately 30 minutes per day were saved. Many of these smart home devices are designed to save time, such as smart refrigerators that keep track of inventory and automatically order groceries.
How much can using a smart security system in your home reduce insurance premiums?
You can expect to see a 10-20% reduction in home insurance premiums after installing a smart home security device.
Many insurance companies advertise reduced rates if you install a smart home security device.
The FBI estimates that a burglary occurs in the United States about every 15 seconds, and homes without a security system are three times more likely to be burglarized than those that have a working system in place. Security systems can also help prevent fire or water damage.
Some of the smart home devices that can lower premiums include wireless security systems, thermostats that can shut off the fans in case of a fire, smart smoke detectors, water shutoff sensors, and gas shutoff sensors.
How much energy can smart heating and cooling systems save homeowners?
A study by Nest found that smart thermostats saved homeowners about 10-12% on heating and 15% on cooling cost over a year.
Another study found that for customers that leave their thermostat set at 72 degrees F, they could expect an average savings of 23% per year.
Several factors could affect the results. These factors include the type and adequacy of the insulation in the home, the climate, and the age and type of HVAC system.
Smart systems have features like scheduling, motion sensors, and geofencing that can sense when your smartphone is near and adjust the temperature to your preferences.
What percent of homeowners believe that installing smart home systems will make the house sell faster?
Many homeowners feel that installing smart home devices in their homes will increase the value.
It is not known how many sellers think that smart devices will increase the selling price of their home.
However, many people feel that any money they put into their home will pay off with a price increase of exactly what they put into it, or more, but that is rarely the case.
The actual value that smart devices add depends on the buyer and the neighborhood. Many factors will weigh into the perceived value of the home than smart home devices from a buyer’s perspective.
Key Takeaway: Smart home devices can save you money by decreasing energy costs, saving on insurance rates, and potentially increases the resale value of your home. They also save time in many cases.
Smart Home Market Segments
The smart home market includes an increasing number of products to perform a growing number of functions. Let’s take a look at some of the market segments for comparison.
What percent of smart homes include smart entertainment systems?
Smart TVs and entertainment systems are some of the most mature markets in the smart technology industry.
They have been around the longest and were some of the first devices to be adopted. Nearly 57% use their smart systems for entertainment.
By 2023, what market share will the home monitoring and security systems segments have?
Approximately 33% of all smart home devices were used for security and security lighting.
In the United States and Canada, the smart security device market is growing by a CAGR of 15.22%. It is expected to grow to over $150 million by the year 2023.
What is the smart kitchen market size?
Approximately 29% use smart home devices for cooking and chores. Of these, nearly 28% were used to control smart appliances like the washer, dryer, and refrigerator.
Key Takeaway: People use their smart devices for many purposes. Entertainment, home security, and household chores are some of the most popular uses of these devices.
India Smart Home Automation Statistics
This section will cover smart home statistics in India. Keep reading to learn the market size of the home automation market in India, how many smart homes there are, and much more new stats.
What is the home automation market size in India?
The smart home market in India was valued at $1.79 billion in 2018 with a CAGR of 29.8%.
What is the smart home market share in India?
Penetration of the Indian market is expected to reach 12.84% by 2025.
How many smart homes are in India?
There are approximately 13.15 million smart homes in India.
What percent of homes in India are smart homes?
No hard statistics could be found on the percentage of smart homes in India, but if you divide the total number of homes in India by an approximately 12% market penetration, it is possible to estimate the number of homes that have smart home technology.
The total number of homes in India is 187 million. A 12% market penetration of smart home technology means that approximately 22.4 million homes use smart technology in India.
Key Takeaway: India has a growing smart home market that is only in the early stages of development. This market has lucrative potential for growth.
Interesting Facts About the Smart Home Automation Industry
Here are a few other interesting things you might want to know about the smart home and home automation industries. Keep reading.
What percent of adults in the U.S. feel comfortable with smart home technology?
Several barriers to the adoption of smart home technology were found among older adults. These barriers included:
- Lack of instructions or guidance
- Lack of knowledge
- Health-related barriers
- Technology too complex
Security was found to be a major source of unease among adults about smart home technology and connected devices.
Nearly 80% of consumers said that they did not trust devices connected to the Internet.
Nearly 72% of all owners of smart security devices said that they were concerned about an invasion of privacy by security companies.
In addition, approximately 23% of the owners of the devices said they deactivate the system when they have guests over.
When it comes to privacy concerns, 88% of all users were found to be concerned over privacy issues and the potential for companies to use the devices for spying and collecting personal data.
How much does it cost to install home automation?
The cost to install home automation depends on the type of automation and how many devices are connected.
The average cost for a connected home includes automated locks, lights, smart speaker, thermostat, smart plugs, and a hub costs an average of $5,500. This can range between $1,500 on the low end and as high as $20,000 on the high end.
What is the future of smart devices?
Overall, the outlook for continued growth in the smart home device market has considerable growth potential.
The United States is one of the earliest and most developed markets in terms of market penetration and the number of devices in the home, but there is still much room for growth.
Younger adults tend to be earlier adopters than older adopters, but older generations are closing the gap.
Issues of privacy and trust continue to be barriers to growth, especially among older adults. Overcoming these issues will pave the way to a promising future for smart home technology.
Conclusion
This glimpse into statistics about smart home technology and its adoption paints a promising future, especially in certain sectors of the market like security and entertainment.
The market in the United States is far from saturated, and developing nations continue to experience increasing growth.
Competition as more players enter the market, security, and privacy issues are the main challenges to overcome for businesses in this sector.
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