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Europe Smart Home Market
Europe Smart Home Market by Product Type (Smart Lighting Systems, Smart Speakers, Smart Security & Monitoring Systems, Smart HVAC Control), Protocol Standard (Wireless Protocols, Wired Protocols, Hybrid Protocols) - Forecast to 2031
Report ID:MRICT - 104918 Pages: 228 Jan-2025 Formats*: PDF Category: Information and Communications Technology Delivery: 2 to 4 HoursThe Europe Smart Home market was valued at $24.1 billion in 2023. This market is expected to reach $67.6 billion by 2031 from an estimated $27.1 billion in 2024, at a CAGR of 13.9% during the forecast period from 2024 to 2031.
Europe Smart Home Market Size & Forecast
The growth of the Europe smart home market is driven by the rising need for home safety & security, increasing government initiatives promoting the adoption of smart technologies, and the wider proliferation of Internet of Things (IoT) technologies. Furthermore, consumers’ need for complete flexibility & customization is expected to generate growth opportunities for market stakeholders.
Europe Smart Home Market Growth Drivers
Rising Need for Home Safety & Security Driving Market Growth
The rising need for home safety and security is driven by a combination of evolving consumer concerns, technological advancements, and increasing awareness regarding the need for protection in the modern world. With safety becoming a top priority for homeowners, smart home technologies are providing innovative solutions that offer both convenience and enhanced security. Also, with statistics showing a steady rise in break-ins and property crimes, people are turning to smart home technologies as an effective deterrent. Smart security systems, including cameras, motion sensors, doorbell cameras, and smart locks, give homeowners the ability to monitor their properties remotely, significantly enhancing their sense of security.
One of the key factors driving the adoption of smart home security systems is the convenience they provide. Through smartphone apps, homeowners can access real-time video footage, lock & unlock doors, and receive instant alerts about potential security breaches, no matter where they are. This level of control is highly appealing, as it allows individuals to respond to security concerns promptly. Moreover, the integration of voice assistants like Amazon Alexa and Google Assistant further simplifies managing home security systems, allowing for hands-free control. This convenience adds significant appeal for consumers who want to ensure their homes are safe while managing everyday activities.
Europe Smart Home Market Growth Opportunities
Consumers’ Need for Complete Flexibility & Customization Expected to Generate Growth Opportunities for Market Stakeholders
The rising need for complete flexibility and customization in smart home solutions stems from changing consumer expectations and technological advancements. With more people adopting smart home technology, there is an increasing demand for systems that can adapt to individual preferences, lifestyles, and specific needs. Consumers want to have control over every aspect of their home environment, from lighting and temperature to security and entertainment. Smart devices that learn and adjust to users’ habits—such as thermostats that automatically adjust the temperature based on user preference or lighting systems that change color depending on the time of day are becoming essential. This level of customization allows homeowners to create a living space that feels tailored to them, enhancing comfort and convenience.
Additionally, the need for privacy and security has significantly increased as more connected devices enter homes. With the rise of IoT (Internet of Things), there is a growing concern over the security of personal data. Consumers want systems that offer customizable security features, like personalized alerts, remote monitoring, and even advanced facial recognition, which provide peace of mind and greater control over home security. Thus, consumers’ need for complete flexibility and customization in smart home solutions reflects consumers' increasing demand for control, comfort, security, and convenience in their connected homes, which is expected to generate growth opportunities for market stakeholders during the forecast period.
Europe Smart Home Market Analysis: Key Findings
The Smart Security & Monitoring Systems Segment to Dominate the Europe Smart Home Market in 2024
Based on product type, the Europe smart home market is segmented into smart security & monitoring systems, smart speakers, smart lighting systems, smart HVAC control, smart entertainment systems, smart home appliances, smart home healthcare systems, smart kitchen appliances, and smart furniture. In 2024, the smart security & monitoring systems segment is expected to account for the largest share of around 29% of the Europe smart home market. The large market share of this segment is attributed to the rising need for home safety and security. Smart security systems integrate various technologies like video surveillance, access control, and intrusion detection to provide comprehensive security coverage. They help 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 speaker’s segment is expected to register the highest CAGR of 18.7% during the forecast period. This segment's high growth is driven by the increasing penetration of voice-controlled assistants, the rising demand for home automation, the growing integration of multi-functional capabilities into smart speakers, the popularity of music streaming services, and advancements in AI-powered virtual assistants.
The Wireless Protocol Segment to Dominate the Europe Smart Home Market in 2024
Based on protocol & standard, the Europe smart home market is segmented into wireless protocols, wired protocols, and hybrid protocols. In 2024, the wireless protocols segment is expected to account for the largest share of the Europe smart home market. The segment’s large market share is attributed to the rising investments in smart home automation, increasing advancements in wireless communication standards, and the increasing demand for seamless connectivity, interoperability, and energy-efficient communication solutions for smart home applications. Also, this segment is expected to register the highest CAGR of 14.7% during the forecast period.
Country/Region Analysis
In 2024, Germany to Dominate the Europe Smart Home Market
In 2024, Germany accounted 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 addition, the presence of prominent players supports the Europe smart home market growth. For instance, in In June 2024, Bosch Smart Home (a subsidiary of Robert Bosch GmbH (Germany) introduced a pioneering update for the Bosch Smart Home Controller II. This update enables Bosch Smart Home devices to be seamlessly integrated into a universal, cross-brand smart home network. The standard developed by the Connectivity Standards Alliance (CSA) offers compatibility with devices from various manufacturers, thus supporting an individually customized smart home setup.
However, the Norway is projected to register the highest CAGR during the forecast period. The growth of this market is attributed to the increasing consumer awareness, rising Norwegian government supporting the development of smart grids, and regulatory support, financial incentives, and strategic investments in digital infrastructure.
Europe Smart Home Market: Key Companies
The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the Europe smart home market are LG Electronics, Inc. (South Korea), ASSA ABLOY AB (Sweden), Amazon Web Services, Inc. (U.S) (a subsidiary of Amazon.com, Inc.), Samsung Electronics Co., Ltd. (South Korea), Schneider Electric SE (France), Siemens AG (Germany), Google LLC (U.S.) (a subsidiary of Alphabet Inc.), Apple, Inc. (U.S.), Legrand SA (France), Johnson Controls International plc (Ireland), Honeywell International Inc. (U.S.), ecobee Technologies ULC (Canada) (a subsidiary of Generac Power Systems, Inc.), Robert Bosch GmbH (Germany), ABB Ltd. (Switzerland), and Axis Communications AB (Sweden) (a subsidiary of Canon Inc.).
Europe Smart Home Industry Overview: Latest Developments from Key Industry Players
- In November 2024, Schneider Electric SE (France) and Smartworld Developers Pvt. Ltd. (India) signed a Memorandum of Understanding (MoU) to implement 360-degree home automation in upcoming projects. The collaboration will focus on creating energyefficient, healthier homes using Schneider Electric's smart products, including Wiser Smart Homes and Modular Switches.
- In October 2024, Johnson Controls launched the PENN® System 550, a modular electronic control solution for HVAC systems, providing temperature, humidity, and pressure control with A2L refrigerant leak detection and mitigation technology.
- In August 2024, LG launched its ThinQ ON smart home hub, featuring an AI voice assistant that controls LG appliances and other smart devices. The hub includes a built-in speaker for voice commands, allowing users to set preferences, such as thermostat temperature or washer cycle.
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Europe Smart Home Market Research Summary
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Particulars |
Details |
|
Number of Pages |
227 |
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Format |
|
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Forecast Period |
2024–2031 |
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Base Year |
2023 |
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CAGR (Value) |
13.9% |
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Market Size (Value) |
$67.5 Billion by 2031 |
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Segments Covered |
By Product Type
By Protocol & Standard
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Key Companies Profiled |
LG Electronics, Inc. (South Korea), ASSA ABLOY AB (Sweden), Amazon Web Services, Inc. (U.S) (a subsidiary of Amazon.com, Inc.), Samsung Electronics Co., Ltd. (South Korea), Schneider Electric SE (France), Siemens AG (Germany), Google LLC (U.S.) (a subsidiary of Alphabet Inc.), Apple, Inc. (U.S.), Legrand SA (France), Johnson Controls International plc (Ireland), Honeywell International Inc. (U.S.), ecobee Technologies ULC (Canada) (a subsidiary of Generac Power Systems, Inc.), Robert Bosch GmbH (Germany), ABB Ltd. (Switzerland), and Axis Communications AB (Sweden) (a subsidiary of Canon Inc.). |
Key questions answered in the europe smart home market report:
The Europe Smart Home market study focuses on market assessment and opportunity analysis based on the sales of smart home products across the region and market segments. the study includes a competitive analysis based on an extensive assessment of the leading players’ product portfolios and key growth strategies adopted in the last 3–4 years.
The Europe smart home market is projected to reach $67.5 billion by 2031, at a CAGR of 13.9% during the forecast period 2024–2031.
- Which product type segment is expected to hold the major share of this market in 2024?
In 2024, the smart home security & monitoring segment is expected to account for the largest share of 29.1% of the Europe smart home market. The segment’s large market share is attributed to the rising need for home safety and security, the rising adoption of AI-enabled surveillance, the growing popularity of connected home ecosystems, advancements in wireless security technologies, and the growing need for real-time monitoring.
The growth of the Europe smart home market is driven by the rising need for home safety & security, increasing government initiatives promoting the adoption of smart technologies, and the wider proliferation of Internet of Things (IoT) technologies. Furthermore, consumers’ need for complete flexibility & customization is expected to generate growth opportunities for market stakeholders.
The key players operating in the Europe smart home market are LG Electronics, Inc. (South Korea), ASSA ABLOY AB (Sweden), Amazon Web Services, Inc. (U.S) (a subsidiary of Amazon.com, Inc.), Samsung Electronics Co., Ltd. (South Korea), Schneider Electric SE (France), Siemens AG (Germany), Google LLC (U.S.) (a subsidiary of Alphabet Inc.), Apple, Inc. (U.S.), Legrand SA (France), Johnson Controls International plc (Ireland), Honeywell International Inc. (U.S.), ecobee Technologies ULC (Canada) (a subsidiary of Generac Power Systems, Inc.), Robert Bosch GmbH (Germany), ABB Ltd. (Switzerland), and Axis Communications AB (Sweden) (a subsidiary of Canon Inc.).
Author Name:
The Europe smart home market is expected to reach USD 67.6 billion by 2031 from an estimated USD 27.1 billion in 2024, at a CAGR of 13.9% during the forecast period (2024–2031). The growth of the Europe smart home market is driven by the rising need for home safety & security, increasing government initiatives promoting the adoption of smart technologies, and the wider proliferation of Internet of Things (IoT) technologies. However, High procurement costs restrain the growth of this market.
Furthermore, consumers’ need for complete flexibility & customization is expected to generate growth opportunities for market stakeholders. However, data privacy & security concerns and smart home solutions’ compatibility with existing infrastructure are major challenges in the Europe smart home market.
LG Electronics, Inc.
Founded in 1958 and headquartered in Seoul, South Korea, LG Electronics, Inc. is a global innovator in consumer electronics, home appliances, and cutting-edge technology solutions. The company is renowned for its advanced home entertainment systems, energy-efficient appliances, and pioneering developments in vehicle component solutions and business technologies. LG Electronics operates across diverse business segments, catering to residential, commercial, and industrial sectors, with products designed to enhance quality of life and meet evolving customer needs.
The company’s Home Appliance & Air Solution (H&A) division offers state-of-the-art refrigerators, washing machines, and air conditioners, emphasizing sustainability and energy efficiency. Its Home Entertainment (HE) segment is known for premium TVs, sound systems, and digital signage solutions. Its comprehensive product portfolio and extensive distribution network ensure a robust presence in key regions, including Korea, North America, Asia, and Europe. The company’s focus on integrating sustainability with cutting-edge technology positions it as a trusted partner in shaping the future of smart living.
Google LLC. (A Subsidary of Alphabet, Inc.)
Founded in 1998 and headquartered in California, U.S., Google LLC is a provider of online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and Artificial Intelligence (AI). The company offers a wide range of AI solutions such as generative AI, machine learning, speech, text and language API, image and video API, AI assistance and conversational AI, and consulting services.
Google LLC is a leading player in the smart home solutions market, leveraging its vast ecosystem of technology products, artificial intelligence, and data services to create a seamless, user-friendly experience for customers. Google offers a variety of products in the smart home space under the Google Nest brand, including smart thermostats, cameras, doorbells, speakers, and smoke alarms.
Amazon Web Services, Inc. (A Subsidary of Amazon.com, Inc.)
Founded in 2006 and headquartered in Washington, U.S., Amazon Web Services, Inc. offers cloud computing services. Amazon Web Services (AWS) is a cloud platform that offers a suite of powerful tools and services that are integral to the development, deployment, and scaling of smart home solutions. While Amazon’s Alexa ecosystem is widely known for driving smart home solutions, AWS plays a crucial, behind-the-scenes role in powering infrastructure and providing cloud-based services to support smart home applications.
Samsung Electronics Co., Ltd.
Founded in 1969 and headquartered in Suwon-si, South Korea, Samsung Electronics is a global technology company that operates in various areas of the electronics industry, including consumer electronics, information technology, mobile communications, and device solutions. The company is involved in the development, manufacturing, and sale of a wide range of consumer products, such as mobile phones, tablets, smart TVs, home theatre systems, smart digital cameras, and smart home appliances like refrigerators, air conditioners, washing machines, and ovens.
Additionally, the company offers PCs, peripherals, printers, memory and storage products, healthcare and medical equipment, telecommunications infrastructure, and LED lighting solutions. The company is also involved in semiconductor manufacturing, cyber game match hosting, venture capital investments, sponsoring sports teams and games, credit management, and logistics services.
ASSA ABLOY AB
Founded in 1994 and headquartered in Stockholm, Sweden, ASSA ABLOY AB is a global leader in access solutions. The company specializes in providing innovative products and services that ensure security, safety, and convenience across residential, commercial, and institutional markets. ASSA ABLOY offers a wide range of solutions, including mechanical locks, lock systems, and fittings, as well as advanced electromechanical and electronic locks. Its product portfolio extends to security doors, hardware, and entrance automation solutions, catering to the growing demand for smart and connected security systems. The company’s offerings serve diverse industries, including healthcare, education, retail, and transportation.
Operating in over 70 countries, ASSA ABLOY maintains a robust global presence supported by a strong distribution network. With a commitment to sustainability and innovation, the company continuously invests in research and development to deliver cutting-edge technologies that address the evolving security needs of its customers.
Siemens AG
Founded in 1847 and headquartered in Berlin, Germany, Siemens AG offers power and energy services & solutions for applications such as building technology, drive technology, industrial automation, mobility, financing, and consumer products. The company provides a wide range of smart home products, such as smart control systems, home automation with building technologies, smart lighting solutions, advanced heating solutions, and smart security solutions. The company operates through four business segments, namely Siemens Healthineers Digital Industries, Smart Infrastructure, and Mobility.
Siemens is a global technology company that provides a wide range of smart home solutions, focusing on automation, energy management, security, and comfort. The company's smart home offerings make homes more efficient, secure, and convenient through intelligent, connected technologies. Siemens combines its deep expertise in automation, electrification, and digitalization to provide innovative products for residential users.
Apple Inc.
Founded in 1976 and headquartered in California, U.S., Apple designs and manufactures mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The company offers products and services, including iPhone, iPad, iPod, Mac, Apple TV, a portfolio of consumer and professional software apps, the iOS and OS X operating systems, iCloud, accessories, service, and support.
In addition, the company provides smart home entertainment devices with a strategic focus on ecosystem integration, premium user experiences, and cutting-edge innovation. By leveraging technologies such as spatial audio, AI-driven recommendations, and enhanced connectivity, Apple is setting new standards for home entertainment.
Schneider Electric SE
Founded in 1871 and headquartered in Rueil-Malmaison, France, Schneider Electric SE is a global leader in digital automation and energy management. The company provides a wide range of products and solutions for various applications, including residential and small businesses, industrial operations, and data centers. Schneider Electric continues to prioritize innovation and technological advancements to maintain its competitive edge. The company caters to diverse end-use industries, such as automotive and eMobility, energy and utilities, and healthcare. In the smart home automation sector, the company offers innovative solutions that enhance energy efficiency, security, and convenience.
Schneider Electric operates through two reportable business segments: Energy Management and Industrial Automation. With its subsidiaries and a robust distribution network, the company maintains a strong geographic presence across North America, Western Europe, Asia-Pacific, and the Rest of the World.
Legrand SA
Founded in 1860 and headquartered in Limoges, France, Legrand SA is a global specialist in electrical and digital building infrastructure. The company provides innovative solutions that improve the efficiency, comfort, and security of residential, commercial, and industrial spaces. Legrand's product portfolio encompasses switches, sockets, home automation systems, energy distribution, and data center infrastructure, offering seamless integration for modern buildings. Legrand’s dedication to providing sustainable and user-centric solutions positions the company as a key player in the global smart building ecosystem.
With a strong commitment to innovation, sustainability, and digital transformation, Legrand continues to lead in the electrical and digital building sectors. The company operates through an extensive distribution network, with a robust geographic presence across Europe, North and Central America, and other regions worldwide.
Johnson Controls International plc
Founded in 1885 and headquartered in Cork, Ireland, Johnson Controls International plc is a global leader in building solutions, energy efficiency, and sustainability. The company specializes in smart buildings, HVAC systems, fire safety, security, and building automation technologies, enabling its clients to optimize energy usage and improve operational efficiency. Johnson Controls also plays a significant role in advancing smart city initiatives and enabling the transition toward net-zero energy buildings.
The company serves diverse industries, including the residential, commercial, healthcare, and industrial sectors. Operating through multiple business segments—Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia-Pacific, and Global Products—the company maintains a strong geographic presence in the United States, Europe, Asia-Pacific, and other regions.
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