The number of smart homes in Europe and North America reached 105 million in 2021 – IoT Business News

The number of smart homes in Europe and North America reached 105 million in 2021

According to a new research report from IoT analyst firm Berg Insight, the number of smart homes in Europe and North America reached 105.0 million by 2021.

The most advanced the market for smart homes is North America, which has an installed base of 51.3 million smart homes by the end of the year. That equates to a penetration of 36 percent. During 2021, the number of smart homes in North America grew by 13.0 percent year-on-year. The strong market growth is expected to continue in the coming years. By 2026, Berg Insight estimates that about 74.6 million homes in North America will be smart, equivalent to 50 percent of all homes in the region. The European market is still lagging behind the North American in terms of market penetration. There were a total of 53.7 million smart homes in Europe by the end of 2021. The installed base in the region is expected to reach around 100 million homes by the end of 2026, representing a market penetration of 42 percent.

That most popular smart home products includes smart thermostats, smart bulbs, smart security cameras, smart door locks, smart connectors and smart speakers. These products, which together have sold hundreds of millions, are marketed by established OEMs such as Signify, Resideo, Danfoss, Belkin, Chamberlain and Assa Abloy and newer players such as Ecobee, Mysa, Nuki, Arlo, Netatmo, IKEA and Wyze Labs. The entire home systems market is served by traditional home automation specialists, home security providers, telecom operators and do-it-yourself solutions providers.

In the North American market, interactive home security systems has emerged as one of the most common types of smart home systems. The largest providers of home security include ADT, Vivint and Comcast. In Europe, traditional home automation systems and do-it-yourself solutions are more common as home-based systems. eQ-3, Centrica, Verisure and Somfy are the largest suppliers of systems for the entire home in the region. The installed base of systems for the entire home in Europe and North America amounted to 20.0 million systems and 30.0 million systems, respectively, by the end of 2021.

Smart and connected home solutions is now becoming ubiquitous, and in many product categories, connectivity is a standard feature. However, a connected product does not automatically equate to an intelligent solution that adds real value to homeowners.

diagram: Total number of smart homes Europe and North America 2020-2026

“There is a lot left to work on for the participants in the smart home market before the real smart home is realized, where products and systems from different suppliers work together seamlessly and automatically make adjustments optimized for the individual user.”, continues Mr. Backman. The development of the software side is the key to making this a reality.

Mr. Backman concludes:

“The long-awaited smarthome standard Matter, which is scheduled to be launched in 2022, has great potential to address many of the issues that are hampering the adoption of smarthome solutions today.”

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