Although we don’t fly around in cars, smart homes of the future are a reality. Alexa, find us some intriguing smart home statistics!
The number of people who use smart technology is growing, and the industry will be worth $53.5 billion by 2022. But what is considered a smart home, and how can you become a proud owner of one?
Keep reading to find out.
Top 10 Home Automation Statistics
- There are 175 million smart homes in the world.
- Currently, people around the world use 4.08 billion voice assistants.
- Global revenue from smart home products reached $206 billion in 2018.
- The US had over 40 million smart homes in 2018.
- 38% of older millennials (aged 27–36) own smart homes.
- There will be 22 million smart homes in the EU by the end of 2020.
- Two-thirds of consumers say they want a connected home.
- An average US household has approximately 11 connected devices.
- 14.2 million US households had a robotic vacuum cleaner in 2018.
- 72% of consumers say that smart technology makes them feel safer.
The Smart Home Industry
Smart homes are becoming increasingly popular due to their convenience.
A smart home usually includes remote monitoring, appliance management, and systems for security, heating, cooling, and entertainment.
1. There are 175 million smart homes in the world.
Smart home technology has started gaining popularity very recently, even though it’s been around for quite some time.
One of the more interesting smart home facts is that the first smart home device, ECHO IV, was created back in 1966.
It was designed to create shopping lists, control temperature, and turn appliances on and off, but it was never commercially shipped.
However, more and more people are embracing this trend. And according to the smart home market forecast reports, there will be 195.8 million smart homes worldwide by 2023.
2. Currently, people around the world use 4.08 billion voice assistants.
Forecasts suggest that, by 2023, digital voice assistants will outnumber the human population and will reach the 8 billion mark.
Virtual assistants have become some of the most popular smart home devices, with Amazon Alexa at the top of the list.
3. The global revenue from smart home products reached $206 billion in 2018.
The smart home entertainment industry is very lucrative right now. A smart home market analysis reveals that, by 2023, the home entertainment sector’s global revenue will amount to $17 billion.
The most popular type of smart home entertainment device is a smart speaker with built-in displays that allow for video playback.
Moreover, stats show that more than 70% of smart speaker users in the US own the Amazon Echo.
It has become popular mainly thanks to voice assistants and internet television.
4. It’s estimated that the global home automation market will have a CAGR of 25% by 2025.
The smart home market was worth $64.6 billion in 2019, and it’s expected to reach $246.42 billion by 2025. It’s also estimated that it will have a compound annual growth rate (CAGR) of 25% between 2020 and 2025.
5. The global smart home market will be worth $141 billion by 2023.
Statistics also predict that consumers from North America will spend the most on smart home technology, with a 40% share of the projected global spending.
Smart Home Users
We don’t need a fancy smart home infographic to show you which demographic uses smart house technology the most—it’s the millennials.
They’re always open to trying new things, and if those things save money and are environmentally friendly at the same time, it’s a win-win situation.
6. There were over 40 million smart homes in the US in 2018.
In 2018, the US had the most significant number of smart home users, 20.4% more than in 2017. The smart home survey also revealed that 32% of all homes in the US in 2018 were smart homes.
7. There will be 22 million smart homes in the EU by the end of 2020.
America may be the leader in the smart home industry, but Europe isn’t far behind. Smart devices are gaining so much popularity that, by 2022, every home could have more than 500 smart products.
8. 38% of older millennials (aged 27–36) own a smart home.
Furthermore, smart home statistics reveal that 58% of millennials are interested in buying a smart home.
Additionally, 86% of them are ready to pay more for a home or a rental equipped with smart home systems.
9. 65% of baby boomers are willing to pay more for a smart home.
Even though millennials are considered digital natives, the smart home demand is high among all generations, and smart devices for the home aren’t only for young people.
Tons of services and products are aimed at the elderly, from smart pillboxes that alert the user to take their meds, to smart clothes with fall detection.
Moreover, now that smart healthcare systems are becoming more accessible, older generations are willing to pay more for housing.
10. 57% of men own smart home systems, compared to 43% of women.
Smart home demographics show that the youth and the male population are more interested in new technologies than women and older people.
Moreover, around 44% of the owners of smart home systems are parents with children younger than 18.
11. Two-thirds of consumers say they want a connected home.
The smart home research reveals that, within three years, approximately 43% of homeowners will have connected smart home appliances.
A connected home offers safety, convenience, and security, which are things every homeowner desires.
12. One in four internet users in the US has at least one smart home product or a device.
The survey also shows that consumers who have an income of $100,000 and higher, which is about 43%, are more likely to interact with smart home devices.
However, consumers aged 50 and older—approximately 13%—are the least likely to do so.
Smart Technology Use Statistics
People of 2020 are already hyperconnected and dependent on their smart devices. And as this technology is becoming widely available, people will find even more ways to make use of it.
13. An average US household has 11 connected devices.
As much as seven of these are smart screens (smart TVs, smartphones, tablets).
People are ready for a faster and more reliable internet connection, which is why 5G technology is the driving force behind the smart home device sales.
To illustrate this, 67% of consumers said they’d buy a 5G-compatible phone when the network becomes widespread.
14. Smart speakers are the best-selling smart home devices.
The popularity of these smart devices drove their revenue to $8 billion in 2018. Amazon, Google, and Alibaba are the most popular brands in this category.
Moreover, stats show that Alibaba dominates the Chinese smart speaker market with 3.71 million sold speakers in 2020.
The smart home report also reveals that, as of 2019, voice assistants support more than 90,000 smart home devices.
15. About 63% of purchased thermostats in 2017 were smart thermostats.
The number of smart thermostats has more than doubled recently, as 13% of US households had a smart thermostat in 2017. The smart home statistics also show that 60% of them are self-installed.
16. In 2017, only 7% of US households had smart light bulbs.
Controlling your lights with an app or your voice has never been easier, so this category has quickly gained popularity.
It’s projected that 48.5 million households in the US will have smart lighting by 2024.
17. 14.2 million US households had a robotic vacuum cleaner in 2018.
Home automation market trends reveal that this is one of the most popular categories of smart appliances. Compared to 2017, this was a 1.2 million increase.
The brand with the most substantial market presence is iRobot, with an astounding 82% of the market share in North America.
Smart Home Statistics for 2020 and Beyond
Smart home technology is not just for tech-savvy people who want to show off their gadgets.
The technology is beneficial for both the homeowner and the environment, and anyone can use it, even if they’re not digital natives.
18. 57% of users say that smart devices save time.
(HDL Automation, Frontier)
Although the smart home statistics show that 87% of people don’t know what the Internet of Things (IoT) is, they know that it can help us be more productive.
19. 72% of consumers say that smart technology makes them feel safer.
(Statista, Engineered Alarm Solutions)
The home safety statistics reveal that 56% of burglars attempt to enter through the front or back doors, so installing door sensors might be a good idea.
Safety concerns are pushing the industry’s security sector, which is expected to hit $35,619.9 million in revenue in 2024.
20. Smart home systems are saving homeowners a lot of money.
Just to be clear—a smart home is quite an investment.
Nevertheless, the home automation industry is thriving. This is because some smart home systems are so energy-efficient, they pay themselves back in no more than two years.
Furthermore, some insurance companies cut down home insurance rates by 20% for homes with smart home devices.
21. Smart home systems prevent water waste.
Research shows that we waste almost 50% of the water we use. Luckily, smart showerheads and touchless faucets can help with these issues.
In the future, smart home technology will be even more energy-efficient.
Timing-based technologies, sensors, and motion detectors will never leave your TVs, appliances, and lighting fixtures running for longer than necessary.
22. One in seven adults aged 50 and over has a home assistance device like Amazon Alexa or Google Home.
Smart home technology is especially beneficial to the elderly who need assistance with their everyday activities. Voice control is particularly useful to people who have issues with vision, mobility, or learning new things.
Smart Home Hacking and Other Downsides
Companies creating the new smart home devices may have the best intentions, but sometimes their products have security gaps.
Although the positive sides of smart home systems outweigh the negative ones, there are quite a few concerns regarding their security. Some devices can even get your smart home hacked.
23. 59% of smart speaker users are concerned about their privacy.
To experience the future of smart homes properly, voice assistants need to listen to you all the time. This is why more than half of the users are concerned that they’re being listened in on and that their data is collected without permission.
Fortunately, you can activate the “Delete by voice” function, and ask your digital assistant to delete your conversations and questions.
24. 15% of smart hubs and 12% of storage devices get hacked.
The smart home industry analysis shows that, in addition to smart hubs and storage devices, printers, smart TVs, and IP phones are also hacked very often.
Weak passwords make some of them particularly vulnerable to cyber attacks, while others have security vulnerabilities related to software or hardware.
What percentage of homes are smart homes?
Globally, some 7.7% of homes are smart homes, and the US has 15% of them. It’s also estimated that the US market will grow quickly, reaching 28% by 2021.
How many smart devices can you have in a house?
You can have as many smart home devices as you want, the sky’s the limit.
Well, your budget is the limit, but you get the gist.
There are so many categories. You can automate anything, from your blinds rising at a certain time, to your coffee machine, making you a cup of Joe upon entering the house.
How much is the smart home industry worth?
So far, consumers have spent $27.6 billion on smart home devices and services in 2020, and it’s projected that the global revenue of the industry will reach $141 billion by 2023.
What will houses look like in 2050?
We can only imagine.
In 2050, houses will probably be able to collect and store energy generated from non-fossil fuels to heat water and homes. All cars could be electric, and every house would have a charging point.
Smart homes could even monitor our health and activities, reminding us to take medications and avoid accidents.
How big is the smart home market?
The market growth is influenced by several factors, such as the increase of the disposable income, number of internet users, and the increasing need for energy-saving and low carbon emission-oriented solutions.
According to the smart home statistics for 2021, the global smart home revenue should hit $99.537 million by the end of the year.
Enjoying the benefits of a smart home is no longer science fiction. The future is here, and these smart home statistics are proof.
Thousands of different products and dozens of brands are here to make our lives much more comfortable. One day, smart homes will become just as common as smartphones.