The smart home market is experiencing robust growth, transitioning from a novelty to mainstream adoption. New product ranges and professional subscription services are emerging to ease adoption and expand the consumer base, targeting both retrofit installations and new home developments.
According to a new report from global technology intelligence firm ABI Research, shipments of smart home devices for energy management, specifically smart thermostats, smart lights, and smart plugs, are projected to skyrocket from 230.9 million in 2024 to over 584 million in 2030.
“Western European households will spearhead the adoption of energy efficiency smart home devices, closely followed by North American households. The rate and speed of adoption are influenced by several factors, including increased household Wi-Fi connectivity, device price points, installation type, and customer service,” explains Rithika Thomas, Sustainable Technologies Senior Analyst at ABI Research. “Global energy regulations, eco bonuses, and subsidies, particularly in the EU, the US, and China, will further accelerate adoption during the forecast period, opening opportunities in retrofit markets, which will surpass new builds.”
Legacy, established brands are bolstering their offerings by acquiring smaller companies with niche expertise as the fragmented smart home industry matures. Currently, the ecosystem lacks a dominant player, with a noticeable disconnect between product marketing, market hype, consumer adoption, and purchasing power. Data privacy, security, sustainability, convenience, energy savings, and interoperability with existing devices are strategic considerations vendors utilize to drive customer satisfaction and ensure vendor stickiness.
The smart thermostats sector is poised to have the most significant impact on residential energy consumption, with over 45% adoption in Western European and North American households, leading to the shipment of 67.2 million devices globally by 2030. Nest, Honeywell, Ecobee, and Tado represent over 60% of the global market share for smart thermostats, with an installed base predominantly in single-family residential homes. Other smart thermostat vendors include Sensi, Emerson, Venstar, Lux, and Friedrich.
“As the smart home market matures, consumers are becoming increasingly tech-savvy and comparing product performance. Vendors need to prioritize customer engagement, ease of installation, showcase use cases, and adopt Artificial Intelligence (AI), Machine Learning (ML), and data analytics to enhance the user experience without intrusiveness to stay ahead of the game,” Thomas concludes.
These findings are from ABI Research’s report, “Smart Home Devices for Energy Management – Market Data & Forecasts (2024-2030).” This report is part of the company’s Smart Home and Sustainable Technologies research services, which encompass research, data, and analyst insights.
ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
ABI Research is a global technology intelligence firm, uniquely positioned at the intersection of technology solution providers and end-market companies. We act as the bridge seamlessly connecting these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
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