The United States smart home market is expected to reach US$ 70,126.7 Million by 2026 from US$ 23,668 Million in 2020. The smart home system needs a smartphone application or web portal to interact with an automated system as a user interface. Smart home appliances and devices can be perpetually controlled, far away from any internet-connected place using a mobile or other networked device. With the smart home’s arrival, the desire for convenience has created a revolutionary new market in the United States.
The Internet of Things (IoT) is one of the hot topics when it comes to digitization and disruptive changes to traditional industries. Applying the IoT in the context of a private household is what is commonly known as a smart home. The smart-home ecosystem is continuing its rapid expansion, but market growth rates are directly linked to the speed of 5G implementation. Recent IoT investments by Google, Apple, Amazon or Alibaba have changed the landscape noticeably, providing opportunities for all kinds of companies, but have also forced market consolidation. Considering the current moderate user penetration, long product replacement cycles and increasing device connectivity, adoption will steadily grow in the next years.
According to the 2019 Media Post, 69% of United States houses own at least one smart home product. According to the Consumer Technology Association (CTA) study, 83 million households and approximately 22 million homes own more than one smart home product. Americans prefer smart gadgets over traditional methods most because of their Control and Connectivity application. United States Home Internet of Things (IoT) Devices Market is predicted to grow with a double-digit CAGR of 19.83% from 2020 to 2026.
The Internet of Things (IoT) has gained popularity among residential consumers owing to the benefits achieved by connecting household products to the internet. The IoT connects products, software algorithms, services, and end-users, enabling a smooth flow of data and making real-time decisions. It has proved its efficiency and has enhanced the quality and consistency of automation systems. Several large-, mid-, and small-scale companies worldwide are highly investing in the IoT industry.
There are various types of Smart home products present in the United States to satisfy different customers’ requirements. The constant increase in physical crime and cyber-attack on smart home appliances led to Security Household Penetration growth.
Americans are inclined towards Interactive Security System, Smart door lock, smart doorbells, smart locks, smart cameras, smart thermostats, smart lights, and Door/window sensor to make their family and home more secure when they are not around or gone for a long trip. Sound and entertainment play a significant role in smart home owing to their features and usability. The smart speaker uses voice command to control intelligent devices to make daily American life easy.
However, the COVID-19 pandemic has severely impacted the growth of the global smart home industry. Global sales are expected to decline by 5-10% in this fiscal year, depending upon the progression of the virus spread. The impact of COVID-19 on major markets such as the US has been adverse, as supply chain disruption in China has resulted in a decline in demand for smart home systems in the US. The decrease in the number of new construction projects and the temporary shutdown of manufacturing facilities are some of the factors hampering the market growth.
The market in the US is expected to witness higher growth in comparison to other countries in the Americas. However, limited adoption of smart home systems for the short term is expected to affect the growth of the smart home market in the region.
The United States Smart Homes market is highly fierce and embodies several major players. In terms of market share, a handful of the major players forthwith control the smart home market in the United States. The companies covered in this report are Honeywell, Acuity brands, Brink home Security, Sleep Number Corporation, and Spectrum Brands Holdings.