Forty-one percent of households in North America had at least one smart home product or system at the end of last year, according to a study by Berg Insight.
The analysts predict that Europe and North America totaled 126.2 million smart homes last year, with North America leading the way with 60.8 million smart homes. Smart home devices had a penetration rate of 4.1% of all households in the region.
Market growth is expected to continue in the next five years. By 2028, Berg Insight estimates that about 83.8 million homes in North America will be smart, which would be 55% of all homes.
Smart thermostats, light bulbs, security cameras, door locks, speakers, and floor cleaning robots are among the most popular products. They are marketed by incumbent OEMs such as Signify, Resideo, Danfoss, Belkin, Chamberlain, Schlage, Assa Abloy, and iRobot. New entrants are Ecobee, Sonos, Arlo, Nuki, Mysa, IKEA, Wyze Labs, and SharkNinja.
Interactive home security systems are common in North America. Providers include ADT, Vivint, SimpliSafe, Comcast, and Telus. Leading home automation companies in North America include Control4, Crestron, and Savant Systems.
After some slow down in 2023 due to inflation rates and an increasing cost of living, the sector is expected to rebound in North America and Europe this year. The growth is expected to continue thereafter.
The study pointed out that the Matter standard, which is meant to enable devices to work together and promote ease of use, “had a number of challenges since first being revealed and the rollout has been slow.” However, Berg Insight still believes it will be a “have a great unifying force in the smart home market.”
“Smart and connected products and services in the home provide peace of mind and enable cost-savings and enhanced security,” Berg Insight’s Principal Analyst Martin Apelgren, said in a press release. “There is no doubt that homes will become increasingly connected and advanced in the years ahead.”