Allied Market Research

Home Automation and Controls Market Expected to Reach $104.52 Billion By 2028


Report Code : A00904

quote the home automation and controls market size in Asia-Pacific is expected to grow at the highest rate during the forecast period, owing to integration of smart building technologies with other systems such as HVAC systems and lighting control would create lucrative growth opportunities for market. In addition, rapid modernization and willingness to adopt smart cities in Asia-Pacific are expected to create growth opportunities for the home automation and controls market. quote

Avinash Savekar
Lead Analyst, Semiconductor and Electronics

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According to a new report published by Allied Market Research, titled, “Home Automation and Controls Market By Product Type, Offering, And Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2028” The global home automation and controls market size was valued at $52.03 billion in 2019, and is expected to reach $104.52 billion by 2028 growing at a CAGR of 10.70% from 2021 to 2028. North America is expected to be the leading contributor to the global home automation and controls market, followed by Europe and Asia-Pacific.       


Home automation and control system includes all electrical devices with a common central controlling unit, depending on the user inputs. In addition, to control electrical appliances, the concept of home automation extends to managing security systems of homes and controlling of programming devices such as thermostats and sprinkler systems. With rapid advancements in technology, several devices are used in day-to-day activities, which are getting integrated, intuitive, and responsive. In addition, home automation systems require hubs and mobile applications, which are connected directly to router and IoT devices.

In April 2021, Pelin, a connected IoT device service provider and subsidiary of Arm, partnered with Johnson Controls, to accelerate innovation in connectivity, security, and intelligence at the edge of Johnson Controls OpenBlue technology. In addition, in March 2021, Nortek Control, parent company of 2GIG Technologies, launched 2GIG EDGE security & automation panel integrated with artificial intelligence (AI) and edge analytics. It enables compatibility with live feed ONVIF cameras to 2GIG EDGE panel that allows homeowners to use existing ONVIF devices for their surveillance needs. 

The HVAC control segment is expected to grow at the highest CAGR during the forecast period, owing to the adoption of artificial intelligence and IoT for advancements of HVAC systems. In addition, the safety and security segment generated highest revenue in 2019, owing to increase in number of residential buildings equipped with specialized security systems that have controlling capabilities for electronic components.  

Prominent factors that drive growth of the home automation and controls market size include growth in deployment of home automation devices, high adoption of wireless technologies, need for energy-efficient solution, and government initiatives. However, lack of interoperability between smart devices hampers growth of the market. Conversely, high development of smart city projects in Asia-Pacific are expected to create lucrative opportunities for the home automation and controls industry.  

The global home automation and controls market is segmented on the basis of type, technology, application, and region. On the basis of type, the market is divided into home automation system, mainstream home automation system, and managed home automation system. By technology, it is bifurcated divided into wired home automation systems, wireless home automation systems, power line home automation systems, and computing network home automation systems. Depending on application, it is classified into lighting, HVAC, entertainment, safety and & security, and others.  

Region-wise, the home automation and controls market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. The home automation and controls market analysis identified that North America contributed for the maximum revenue in 2019. Factors such as increase in adoption of smart devices and high adoption of wireless technologies have provided several growth opportunities for the market. 

COVID-19 Impact Analysis

The home automation and controls market growth has been significantly impacted by the COVID-19 outbreak. At the start of the outbreak, the main impact faced by many manufacturers was supply problems, owing to halted production. Attributed to lockdown measures and halt of non-essential businesses, the demand for residential and commercial home automation systems has decreased. Consequently, manufacturing & supply of home automation and controls systems is returning to normal levels. Attributed to the ongoing COVID-19 crises, the market witnessed abrupt downturn in 2020. However, a slow recovery is anticipated to begin coming year. It is also estimated that the market will face a lot of challenges leading to the COVID-19 crisis with stagnation trends in many countries. 

Key Findings Of The Study

  • In 2019, the home automation system segment accounted for maximum revenue and is projected to grow at a notable CAGR of 9.0% during the forecast period. 
  • The safety and security segment accounted for more than 40.0% of the home automation and controls market share in 2019.
  • The HVAC segment has the highest growth rate during the forecast period. 
  • Germany was the major shareholder in the Europe home automation and controls market, accounting for approximately 50.0% share in 2019. 

The key players profiled in the report include 2GIG Technologies (U.S.), ABB Ltd (Switzerland), ADT Inc. (U.S.), AMX LLC (U.S.), Control4 Corporation (U.S.), Honeywell International Inc. (U.S.), Johnson Controls International PLC (Ireland), Legrand Group (France), Leviton Manufacturing Co. (U.S.), Inc., and Siemens AG (Germany),. Market players have adopted various strategies, such as product launch, collaboration, partnership, agreement, business expansion, and acquisition to expand their foothold in the home automation and controls industry.   

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quote Home Automation and Controls Market By Type (Home Automation System, Mainstream Home Automation System, and Managed Home Automation System), Technology (Wired Home Automation Systems, Wireless Home Automation Systems, Power line Home Automation Systems, and Computing Network Home Automation Systems), and Application (Lighting, HVAC, Entertainment, Safety & Security, and Others): Global Opportunity Analysis and Industry Forecast, 2021–2028 quote

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