Next Move Strategy Consulting Forecasts strong growth in the global smart home market: From USD 121.3 billion in 2023 to USD 462.9 billion by 2030, driven by rising urbanization and growing disposable income.

SMART HOME MARKET OVERVIEW

The rapidly growing smart home industry encompasses the development, installation, distribution, and maintenance of interconnected home automation systems designed to enhance the convenience, security, and efficiency of residential environments. This market consists of variety of products and services such as IoT-enables devices, smart appliances, security systems and integrated home management platforms. The growth of urban areas, combined with the increasing use of digital technology and IoT devices, has significantly contributed to the growth of the smart home industry. With the growth of urban areas and the increasing importance of digital connectivity in modern-day life, there has been a notable rise in the need for effective and smart home automation systems, such as smart home devices.

Within this burgeoning market, several leading companies stand out for their innovation, market reach, and commitment to sustainability. Among them LG Electronics Inc., ASSA ABLOY AB, Amazon.com, Inc., Samsung Electronics Co., Ltd, and Sony Group Corporation are prominent players, each contributing significantly to the industry's evolution.

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HIGHLIGHTS OF LG ELECTRONICS INC.

LG Electronics Inc. is a dominant player in the smart home market, known for its innovative and advanced smart home products. The company was founded in 1958 and has since grown to become one of the most recognized and respected names in consumer electronics and home appliances. Headquartered in Seoul, South Korea, LG Electronics operates in various segments, including home appliance & air solutions, home entertainment, vehicle component solutions, business solutions, innotek, and others.

LG Electronics has a strong focus on innovation, continuously investing in research and development to introduce new and improved smart home solutions. In 2023, the company achieved total revenue of USD 64.94 billion with an operating profit of USD 0.89 billion. The home appliances segment holds a dominant 36% market share as of 2023, encompassing the manufacturing and sale of refrigerators, washing machines, vacuum cleaners, and residential and commercial air conditioners.

The company has a strong presence in South Korea, with 40% of its revenue generated from the country. Recently, LG Electronics launched ThinQ UP 2.0, a smart home solution that transforms home appliances into highly convenient and ultra-connected lifestyle solutions. This launch underscores the expansion of LG’s successful home appliances business and the company’s commitment in promoting adoption of smart home solutions.

HIGHLIGHTS OF ASSA ABLOY AB

ASSA ABLOY AB is a global leader in the smart home market, recognized for its high-tech and secure solutions that address a diverse range of residential and commercial requirements. In 2023, the company achieved a revenue of USD 108.5 million, reflecting a 16% increase from the previous year. The operating profit for the year stood at USD 17.1 million, highlighting the company’s strong financial performance. With a global presence, ASSA ABLOY AB has a dominant market position in North America, generating 52% of its revenue from the region. This regional strength was a key driver of the 16% sales increase in 2023, particularly fuelled by robust growth in the Americas division and global technologies segment.

ASSA ABLOY AB is committed to innovation and development, having launched more than 450 new products and solutions in 2023 alone. Additionally, 230 new patents were registered, underscoring the company's focus on advanced technology and innovation. Also, approximately 22% of the company's sales were generated by products introduced in the last three years, emphasizing their continuous innovation and market responsiveness.

The company also completed 24 acquisitions in 2023, contributing to a net acquired sales growth of 8% for the year. This strategic expansion has boosted ASSA ABLOY AB's market position and product portfolio, enhancing its ability to meet diverse consumer needs.

Moreover, the implementation of ASSA ABLOY AB's 2025 sustainability program is proceeding according to plan, resulting in improved performance across the Group. This initiative reflects the company’s commitment to sustainability and its efforts to integrate eco-friendly practices into its operations. ASSA ABLOY AB continues to lead the smart home market with its comprehensive range of innovative products, strong regional presence, and strategic growth initiatives.

HIGHLIGHTS OF AMAZON INC

Amazon.com, Inc., known for its innovative and comprehensive smart home product offerings, reported a revenue of USD 574.7 billion in 2023, marking a 16% increase from the previous year. The company's operating profit for the year was USD 36.9 billion, reflecting its strong financial strength and operational efficiency. In 2023, the company experienced a 12% increase in sales compared to the prior year, despite changes in foreign exchange rates that reduced net sales by USD 71 million. The North American segment saw a significant 12% sales growth, driven by increased unit sales primarily from third-party sellers, as well as higher advertising sales and subscription services. International sales accounted for 23% of Amazon's consolidated revenues in 2023, highlighting the company's strong global presence. Amazon continues to expand its reach and capabilities through strategic acquisitions.

Additionally, in February, 2023, Amazon acquired 1Life Healthcare, Inc. (One Medical) for approximately USD 3.5 billion. This acquisition, primarily comprising USD 1.3 billion in intangible assets and USD 2.5 billion in goodwill, aims to enhance Amazon's healthcare offerings, with the assets allocated to the North America segment.

Also, in August 2022, Amazon entered into an agreement to acquire iRobot Corporation for approximately USD 1.7 billion, including its debt. However, in January 2024, Amazon and iRobot mutually agreed to terminate the transaction.

Amazon's commitment to innovation and customer satisfaction drives its success in the smart home market. By continuously expanding its product portfolio and leveraging strategic acquisitions, Amazon aims to provide comprehensive and advanced smart home solutions that meet the evolving needs of its customers.

HIGHLIGHTS OF SAMSUNG ELECTRONICS CO LTD

Samsung Electronics Co., Ltd. reported a revenue of USD 199.6 billion in 2023, a 14% decrease from the previous year, with an operating profit of USD 5.06 billion. The company's commitment to innovation is reflected in its increasing R&D expenditure, which grew from USD 19.55 billion in 2020 to USD 21.26 billion in 2023. For the years ended December 31, 2023, and 2022, Samsung invested USD 62.44 million and USD 699.81 million, respectively, in associates and joint ventures. This significant investment underlines Samsung's strategy to expand its technological capabilities and market reach.

In 2024, Samsung Electronics announced SmartThings Pro and Next-Generation Display Technologies for its award-winning digital signage lineup. SmartThings Pro extended Samsung’s hyper-connected smart home technology to enhance the overall business experience. To better support business-to-business (B2B) customers, SmartThings Pro offers customizable application environments, enhanced sustainability, automated operations, and improved programming interfaces (APIs) for seamless integration. Samsung continues to fuel the smart home industry with its advanced solutions, focusing on enhancing user experience and operational efficiency for both residential and commercial applications.

HIGHLIGHTS OF SONY GROUP CORPORATION

Sony Group Corporation, well-known for its smart home solutions, offering products that enhance home automation, security, and entertainment. The company provides advanced audio-visual equipment, intelligent cameras, and innovative home networking systems. Their smart home offerings integrate seamlessly with various devices and platforms, providing users with an interconnected and convenient living experience.

The company reported a revenue of USD 81.93 billion in 2023, a 14% decrease from the previous year. In 2022, the company's consolidated sales and financial services revenue grew by 16% year-on-year to USD 86.65 billion, while operating income remained steady at USD 9.07 billion. Also, in 2023, the company made strategic investments totalling around USD 9.31 billion, allocating 58% to Content IP, 15% to Repurchase of Common Stock, 15% to DTC/Services, and 12% to other ventures.

Sony's Game & Network Services (G&NS) segment saw significant growth, particularly with the provision of new gaming experiences through PS, including the highly anticipated first-party title, God of War: Ragnarök, and the newly launched PS VR2. In financial year 2022 witnessed substantial growth in hardware sales of PS5, driven by a major improvement in supply. Sony's innovative approach and continuous investment in technology and content have solidified its position in the smart home market, driving growth and enhancing the user experience.

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SUMMARY OF SMART HOME INDUSTRY

The smart home market is characterized by rapid growth and technological advancements, driven by leading companies such as LG Electronics Inc., ASSA ABLOY AB, Amazon.com, Inc., Samsung Electronics Co., Ltd, and Sony Group Corporation. These industry leaders are establishing new benchmarks in innovation, sustainability, and customer service, ensuring that smart home systems cater to the demands of the growing urbanization. As the market grows, their contributions will be crucial in shaping the future of smart home solutions.

About the author

Saurav Sarkar is an accomplished researcher and writer with over three years of experience in conducting thorough research. His passion for exploring various subjects and delving into in-depth analysis has led him to develop a keen understanding of research nuances. He remains committed to staying current with the latest market trends, recognizing their impact on businesses and society. The author can be reached info@nextmsc.com