Market for Smart Home Automation Set to Reach $444.98 Billion by 2030

The latest report by Trade Algo estimates that the global smart home automation market will be valued at USD 444.98 billion by 2030, with a CAGR of 27.3% from 2023 to 2030, according to the latest report. There is a growing demand for smart home automation solutions in the residential sector, which is primarily driven by the rapid adoption of lighting, entertainment, and security and access solutions in the home. 

There is an expectation that advanced technologies such as artificial intelligence, machine learning, and speech recognition, among others, will drive market growth in the future. Furthermore, the key market players have adopted various growth strategies in order to create demand in the market, including partnerships and collaborations in order to offer technologically advanced solutions to satisfy the needs of the market.

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In January 2023, Xailient Inc. announced a partnership with Adobe Systems to improve the functionality of Adobe's smart home video doorbells by using artificial intelligence-compliant face recognition, which is compliant with privacy regulations.

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Smart Home Automation Market Growth & Trends

During the forecast period, the market is expected to benefit from the increase in the number of applications of smart home automation in the areas of security & access, entertainment, lighting, HVAC, energy management, smart kitchen, and other appliances. As far as the application is concerned, the smart kitchen segment is expected to dominate the market in the next few years due to new product launches that follow the rising demand for the ease of cooking processes in general. 

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For instance, Samsung Electronics Co., Ltd. launched the Bespoke smart refrigerator in January 2023, which features a 32-inch touchscreen and a cooling process that is optimized for artificial intelligence and uses advanced techniques. It serves as an automation hub that can be connected to other devices in the smart home as well as act as an automation hub itself.

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In 2022, North America was the largest region by revenue share and it is expected to grow at a significant rate during the forecast period as a result. Honeywell International Inc. and a number of legacy manufacturers and solution providers are located in the region. Due to their long-standing presence in the market as well as their technological and supplier dominance, Lutron Electronics Co., Inc. and Lutron Electronics Co., Inc. possess a competitive edge over new market entrants owing to the technological and supplier dominance they possess. A major driving force for market growth in the region is the region's tendency to adopt modern technology such as artificial intelligence and the Internet of things as well as the adoption of modern technology in general.