North American Smart Home Market to Reach $49.5 Billion by 2023

By Jastra Ilic

With more than 40 million installed smart home systems at the end of this year, North America is the most advanced smart home market in the world. According to research, a strong upward trend is expected to continue in the following years, with market revenue reaching $49.5 billion by 2023.

More than 60 Million Homes in North America Will Be Smart by 2023

In 2012 the North American smart home market reached $1.63 billion value and continued to grow in year-on-year time. In the next five years, the market enlarged more than six times and hit $9.9 billion worth, which was only the beginning of an even more significant expansion period.

Smart home market revenues reached $17.9 billion in 2017, an increase of an incredible 45 percent year-on-year. 2018 brought a 24.8 percent year-on-year increase with a $22.3 billion market value. The statistics show that the North American smart home market is expected to grow at a CAGR of 17.3 percent by 2023, reaching $49.5 billion in yearly income.

At the same time, the number of households that adopt smart home systems is forecasted to grow at a compound annual growth rate of 12.3 percent, resulting in 60.5 million smart homes by 2023 or 41 percent of all households in the region.

Point Solutions Generate the Most Significant Part of Market Revenue

Smart home systems can be divided into two major categories, whole-home systems and point solutions designed for specific in-home functionality. The 2019 data show that point solutions are, in most cases, the consumer’s first smart home purchase.

Divided by categories, global consumers spent $17.1 billion on control and connectivity products, making it the most significant type of smart home purchase. Security solutions generated nearly $16 billion in revenue. During 2019, the consumers all over the world spent almost $17 billion on smart appliances and another $16.3 billion on home entertainment and energy management devices.