Surging energy prices are driving demand for smart home technologies with Research and Markets forecasting 99.7m European households will adopt smart home systems by 2026.
The market research company’s 9th Smart Homes and Home Automation report says at the end of 2021, there were 167.7 million smart home systems in use in the EU27+3 countries. The figure represents a 22.9% year-on-year growth for the sector.
Around 20 million of the systems were multifunction or whole-home systems whereas 147.7 million were point solutions. This corresponds to around 53.7 million smart homes when overlaps are considered, meaning that 23% of all households in Europe were smart at the end of the year.
Research and Markets forecasts the number of European households to adopt smart home systems will grow at a compound annual growth rate (CAGR) of 13.7% during the next five years, resulting in 99.7 million smart homes by 2026. Market revenues grew by 30.9% to €29.7 billion in 2021. The market is forecasted to grow at a CAGR of 15.5% between 2021 and 2026 to reach €61.1 billion at the end of the forecast period.
The report notes that the interest in energy efficiency solutions is growing as energy prices surge and sustainability is considered more.
Smart home products and services are also gaining popularity as the working from home trend continues.