Europe Smart Home Market by Product Type (Smart Lightning Systems, Smart Speakers, Smart Security & Monitoring Systems, Smart Home Appliances), Protocols & Standards (Wireless Protocols, Wired Protocols, Hybrid Protocols) - Forecast to 2030

The Europe Smart Home Market is projected to reach $62.7 billion by 2030, at a CAGR of 11.1% from 2024 to 2030. The growth of the Europe smart home market is driven by increasing government initiatives for the adoption of smart technologies and the wider proliferation of IoT. The increasing availability of interconnected devices and appliances allowed homeowners in the region to control and monitor various aspects of their home remotely. Europe's focus on sustainability and energy efficiency is driving the adoption of smart home technologies that allow for more efficient control of heating, cooling, lighting, and other energy-consuming systems. However, a lack of digital competency and concerns about data sharing, surveillance, and the potential misuse of personal information leading to consumer mistrust of smart home technologies may restrain the market's growth. Furthermore, the increasing need for complete flexibility & customization for consumers is expected to offer significant growth opportunities for the Europe smart home market. However, data privacy and security concerns may hinder the growth of this market.

Wider Proliferation of Internet of Things (IoT) Drive the Smart Home Market in Europe

Over the past decade, the power of the Internet has projected its power beyond computers and smartphones and has made a huge impact across various sectors. IoT devices have become one of the prominent global economic drivers changing diverse sectors, including healthcare, industrial, commercial, and residential. According to a report published by the U.K. government, the growth of the IoT industry is majorly attributed to the availability of inexpensive semiconductors, wider network availability, boosted capacity, and technological advancements in data management & storage. The Internet of Things (IoT) has played a significant role in transforming smart home in Europe, enabling a range of interconnected devices and systems that provide convenience, energy efficiency, and enhanced living experiences.

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While IoT is revolutionizing the industrial sectors, its application and impact on the commercial and residential sectors is seen as a greater deployment of smart home systems. Several organizations are providing smart technologies integrated with IoT devices for home applications. For instance, in July 2021, China Mobile International Limited (China) launched a smart home IoT management platform to provide consumers with one-stop access to IoT hardware and standardized end-to-end applications with unified connectivity and provide a digital lifestyle across Europe. Thus, as new applications of IoT are developed for smart home systems, their adoption is slated to grow over the coming years in Europe, thereby driving market growth.

Key Findings in the Europe Smart Home Market Study:

In 2024, the Smart Security & Monitoring Systems Segment is Expected to Dominate the Europe Smart Home Market

Based on product type, in 2024, the smart security & monitoring systems segment is expected to account for the largest share of the Europe smart home market. In 2024, the smart security & monitoring systems segment is expected to account for the largest share of the Europe smart home market. The large market share of this segment is attributed to the rising sense of home safety and security. Smart security systems integrate various technologies like video surveillance, access control, and intrusion detection to provide comprehensive security coverage. This helps prevent crimes, detect unauthorized access, and respond promptly to security breaches. In Europe, where security and privacy concerns are significant, smart security and monitoring systems can be designed to adhere to strict data protection regulations like the General Data Protection Regulation (GDPR). This ensures that the benefits of these systems are realized without compromising individual rights and privacy. However, the smart speakers segment is projected to register the highest CAGR during the forecast period.

The Hybrid Protocols Segment to Register the Highest CAGR During the Forecast Period

Based on protocol & standard, the hybrid protocols segment is slated to register the highest CAGR during the forecast period. Hybrid protocols in smart home involve integrating wired and wireless communication technologies to create a comprehensive and interconnected ecosystem. The goal is to optimize the performance and reliability of smart devices while considering factors such as range, data transfer speed, power consumption, and compatibility. These hybrid approaches leverage the strengths of both wired and wireless technologies to provide seamless connectivity, robust communication, and optimal performance for various smart devices and applications within the home.

In 2024, Germany is Expected to Dominate the Europe Smart Home Market

Based on country/region, in 2024, Germany is expected to account for the largest share of the Europe smart home market. Germany’s major market share can be attributed to the increasing incorporation of smart technologies and increasing government initiatives to support the adoption of smart gadgets in residential infrastructure. In 2021, 41% of Germans installed at least one smart home product, steadily increasing over the past two years (Source: German industry association—Bitkom). Though the interest is growing, there is still some concern over cybersecurity, which is causing consumers in Germany to be hesitant or avoid smart home products.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by major market players in the last three to four years. The key players profiled in the Europe smart home market study are Google LLC (U.S.), Apple, Inc. (U.S.), Amazon.com, Inc. (U.S.), Siemens AG (Germany), Samsung Electronics Co., Ltd. (South Korea), Honeywell International, Inc. (U.S.), Johnson Controls International plc (Ireland), Schneider Electric SE (France), LG Electronics, Inc. (South Korea), Robert Bosch GmbH (Germany), ABB Ltd. (Switzerland), ASSA ABLOY AB (Sweden), General Electric Company (U.S.), Legrand SA (France), and Axis Communications AB (Sweden).

Scope of the Report:

Europe Smart Home Market Assessment, by Product Type

• Smart Lightning Systems
• Smart Speakers
• Smart HVAC Control
  • Smart Thermostats
  • Smart Vents
  • Smart Air Conditioning
• Smart Security & Monitoring Systems
  • Security Cameras
  • Interface
  • Smart Locks & Access Control
• Smart Entertainment Systems
• Smart Home Appliances
  • Smart Washing Machines
  • Smart Water Heaters
  • Robotic Vacuum Cleaners
  • Smart Kitchen Appliances
  • Smart Refrigerators
  • Smart Coffee Makers
  • Smart Dishwashers
  • Smart Ovens
• Smart Home Healthcare Systems
• Smart Furniture
  • Smart Sofas and Recliners
  • Smart Tables & Desks

Europe Smart Home Market Assessment, by Protocols & Standards                                     

• Wireless Protocols
  • ZigBee
  • Wi-Fi
  • Bluetooth
  • Z-Wave
  • Thread
  • Enocean
• Wired Protocols
  • KNX
  • UPB
  • X10
  • BACNET
  • LONWORKS
  • DALI
  • MODBUS
  • ETHERNET
• Hybrid Protocols
  • Insteon
• C-Bus

Europe Smart Home Market Assessment, by Country/Region

• Germany
• U.K.
• France
• Italy
• Spain
• Netherlands
• Switzerland
• Sweden
• Denmark
• Russia
• Norway
• Rest of Europe

Key questions answered in the report: