Smart home market to soar to $135.3 billion by 2025

A market research report predicts that the value of the smart home market will skyrocket from $78.3 billion in 2020 to $135.3 billion by 2025 at a compound annual growth rate of 11..6%.

The report, titled ‘Smart Home Market with COVID-19 Impact Analysis by Product (Lighting Control, Security & Access Control, HVAC Control, Entertainment, Home Healthcare), Software & Services (Proactive, Behavioural), and Region - Global Forecast to 2025’ was published by MarketsandMarkets and cites a number of factors driving growth in the market; most notably an increased number of internet users, increasing disposable income of users in developing economies, a heightened focus on home monitoring in remote locations and an expanding need for energy-saving and low carbon emission-oriented systems. 

The report also cites the expansion of smart home product ranges offered by manufacturers as being a key driving force behind the predicted growth, alongside growing concern for safety, security and convenience among the general population. 
The smart speakers market in particular was identified as a key area for high growth, driven primarily by the increasing adoption of smart homes, personalisation trends and the popularity of multifunctional devices. 

Advances in AI and natural language processing to improve voice recognition capabilities have also increased demand for smart speakers in smart homes. 

Additionally, proactive type software and services were highlighted as areas that are likely to grow at a higher rate during the forecast period, facilitating the transmission of data and transferring a larger volume of data than the behavioural type to provide inputs to end-users on energy usage and required actions to reduce energy consumption.