From the market insight of Transparency Market Research, The global smart home market is expected to reach the value of US$ 767.3 Bn by the end of 2031 owing to numerous factors.

A smart home is a home equipped with lighting, heating, and electronic devices that can be controlled remotely by a phone or computer. The increasing inclination of consumers to build smart homes is expected to boost the smart home market.

Key drivers for the smart home market

The key factors fueling the growth of this market include the increasing importance of home monitoring in remote locations and growing concern with regard to safety, security and convenience among the general population, the increasing number of internet users and the growing adoption of smart devices along with the growing need for energy-saving and low carbon emission-oriented solutions have been crucial for increased demand of smart home systems. 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. Owing to the benefits achieved by connecting household products to the internet, the IoT has gained popularity among residential consumers. Its development will further boost the smart home market.

Challenge: Issues related to security and privacy breaches

A smart home helps in gathering information regarding energy usage and bills, purchases, movements, and music preferences, among others, to enable its systems to be custom-built to best support the inhabitants’ lifestyle. Devices in a smart home may be vulnerable to common hacking tools. Since the data related to personal information, physical safety, medical care, and homes are stored virtually on the cloud, the possibilities of misuse of these data by hackers are high. A hacked monitor could provide access to other personal data and information, which, in turn, could be used to victimize a user or a homeowner. The smart home industry is confronted with the challenge of assuring security and confidentiality of personal information to consumers. In the case of the remote control of security services, it is imperative to maintain the confidentiality of the information stored; the control of a network’s security systems cannot be compromised. This is expected to restrain market growth to an extent.

In addition to this, data generated by unprotected wearables and smart appliances provide cyber attackers with an ample amount of targeted personal information that can potentially be exploited for fraudulent transactions and identify theft. Smart device hijacking can potentially put the safety of an entire household in jeopardy. An attacker may hijack and effectively assumes control of a device. These attacks are quite difficult to detect because the attacker does not change the basic functionality of the device.

Key Trends for Smart Home Market

• Integration with smart wearable devices: Analysts at ABI Research predict that, by 2026, 29 percent of annual Bluetooth Data Transfer device shipments will be wearables. Bluetooth wearables are a major driver behind the future of data transfer device growth.

• The advent of 5G networks: It can provide higher speed, lower latency and greater capacity

• Intelligent with AI: The advancement of AI-based technologies will further accelerate the proliferation of AI smart home products.

• App-based smart security systems: Security has always been one of the top priorities for homeowners. These systems will offer remote access control over visitor authentication and validation.

• Smart speakers: Smart speakers are the most widespread home technologies across the globe. It has witnessed that more and more smart speakers have been in the expanding household market.