By CEDIA - Mon, Jul 29, 2024 - Blog
Kew Takeaways
The smart home installation market covers various solutions, including intelligent lighting, automated appliances, sophisticated security systems, entertainment devices (like multi-room sound and televisions with voice control), and heating. The industry is growing rapidly as these areas become more widely adopted.
Smart home technology emerged in the 1980s but it’s taken decades to hit the mainstream – and now it’s here to stay. Thanks in part to today’s widespread use of internet-connected devices (including phones), more people are comfortable with smart homes. It’s no longer a futuristic dream to adjust your room temperature without getting up from your seat (or even being at home), it’s an everyday reality.
As the Association for Smart Home Professionals, we have first-hand access to industry market insights that we provide to all members. And it’s clear from our findings that while smart home technology has already grown significantly, it still has room to grow even more.
The US smart home market is estimated at $29 billion, with strong industry growth predicted for the next 12 months.
35% of US smart home installation businesses expect their revenue to grow by between 6-15% over the year ahead, and 15% anticipate growth of more than 30%. Small- and mid-sized integrators lead the way, with these company sizes forecasting the most growth. This boom is expected to lead to more job openings across the industry, with 68% of businesses planning to hire another Technical Person in the next year.
In terms of the biggest areas of the smart home market, integrated control systems contributed the largest amount in the US at $4.7 billion. Audio systems followed closely behind at $4.3 billion.
It’s estimated that the UK smart home market is worth £2.9 billion and will grow steadily over the next year.
34% of UK smart home installation businesses expect their revenue to grow by between 6-15% over the year ahead, and 12% predict growth of more than 30%. Just like their US equivalents, UK-based smart home companies plan to hire more staff. 51% of these businesses say they’ll employ another Technical Person in the next 12 months, with 34% saying they’ll bring in an apprentice. The growing number of these openings is an excellent opportunity for those new to the smart home industry.
The biggest smart technology in the UK is integrated control systems, contributing £402 million to the market. Lighting and shading contributed the second largest amount at £365 million.
The US and UK markets have a lot in common with both expected to grow significantly. In both regions, integrated control systems are the top contributor to the market, showing that US and UK homeowners are equally keen to fully integrate smart technology into their lives. However, there are some key differences between the countries.
The main distinction is that the UK is more focused on lighting and shading while there’s a bigger appetite for audio systems in the US. In the UK, lighting is the second highest contributor to the industry. It’s still important in the US but it ranks third behind audio systems, which are only the sixth biggest contributor in the UK.
While demand for smart lighting is expanding in the US, with this area anticipated to see the highest growth in the market (47%) over the next 12 months, there’s no sign of audio systems’ popularity reaching similar heights in the UK. While the UK audio category is expected to increase by a respectable 18% over the coming year, it remains a smaller area of focus.
Several factors have led to the recent (and continued) growth of the global smart home market, including:
The growth we’ve seen is expected to continue over the coming years.
While this is positive news for the industry, workforce development will also become increasingly important. Businesses must upskill their teams and encourage further people in the industry through training. Investing in development opportunities today is essential so that there are enough Smart Home Professionals to meet demand tomorrow.
The need for more professionals also means it’s a great time for people to join the industry. If you’re considering a career in the sector, read our guide on how to become a Smart Home Installer.