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Smart Homes: A Look Into Today's Trends and Opportunities

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APPLIANCES / TREND PAPER Smart Homes A Look into Today's Trends and Opportunities 4 Smart Home Growth: Regional Dynamics 2,3 The global smart home market is projected to grow and reach $537 billion by 2030. This is supported by growth in each of the three major global regions as demonstrated below: Exhibit 1 North America 4 Europe 2,5,6 Asia Pacific 7,8 Market Size: Revenue 2021: $25.8 B Revenue 2030: $166.2 B CAGR: 23% Notable growth markets: U.S., Canada Market Size: Revenue 2021: $15.7 B Revenue 2030: $116.8 B CAGR: 24.9% Notable growth markets: U.K., Germany Market Size: Revenue 2021: $17.8 B Revenue 2030: $220.9 B CAGR: 32.3% Notable growth markets: India, China, Japan, and South Korea Regulatory Impact In the United States, reducing energy usage in buildings is central to meeting national energy and environmental goals while also lowering expenses for building owners and tenants Low-carbon emissions standards are being implemented across the region and led by the United Kingdom, Germany, and France Efficient use of energy is being promoted by the Chinese government, the Australian Minimum energy performance standards, and the Indian Bureau of Energy Efficiency and Labelling Standards Market Drivers • Increasing number of Internet users • Growing adoption of smart home devices to reduce energy charges and maximize efficiency • Greater demand for safety, security and surveillance, e.g., video doorbells, and lighting solutions • Increasing customer preference for voice-assisted technologies, e.g., Alexa and Google Home • Surging number of smart buildings to reflect growing urbanization • Operating appliances from a smartphone or tablet: 74% of Americans are open to cooking- related automation while 78% are interested in adding smart kitchen appliances to their home in the next five years 9 • Ongoing proliferation of smartphones • Ease, convenience and comfort are primary consumer motivators • Significant need to reduce energy costs coupled with low-carbon emission-oriented solutions • Surging importance of home monitoring, convenience and safety and security • Increasing number of manufacturers expanding smart home product portfolios • Higher standards of living are resulting in the demand for smart and luxurious product lines in smart homes • 76% of Chinese consumers are willing to purchase smart home devices due to the convenience and comfortability they offer • Chinese consumers prefer voice commands for smart home devices and connect them to mobile apps • Major global brands, as well as major Chinese manufacturers are serving the market China is the second largest smart home market in the world behind the North American market 8,15

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