Market Definition
Smart Home solutions provide automation in a facility where all connected devices can be controlled from a central hub remotely on a smartphone application. These solutions incorporate technologically advanced systems to control the temperature, lighting, security, entertainment, multi-media, thermostats, doors, & windows, among other aspects of the house using mobile applications.
With an increasing inclination of people toward an efficient & convenient lifestyle, the adoption of Smart Home systems is surging substantially across the Middle East. Several manufacturers are seeking new technologies to advance their products for a better customer experience with home automation.
Market Insights
The Middle East Smart Homes Market is projected to grow at a CAGR of around 24% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the rapidly increasing concerns over home security entwined with rising customer awareness about various benefits of smart home devices, such as remote monitoring, improved safety, energy management & efficiency, video analytics & motion detection, customization, etc.
Additionally, most countries in the region are introducing several construction projects like Smart buildings to promote energy efficiency, which is another crucial aspect projected to soar the demand for smart home technology & drive the market over the forecast years. Besides, the burgeoning requirements for smart home technologies are also viewed in line with improving living standards and a growing inclination toward adopting luxurious appliances at homes.
Moreover, the rapidly increasing elderly population, working females, infants, and pets shall further fuel the demand for smart home appliances across the Middle East during 2021-26, mainly for home security, assisted monitoring, & other services.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 24% |
| Countries Covered | UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, Israel, Egypt, Turkey |
| Key Companies Profiled | ABB Ltd., Johnson Controls, United Technologies Corporation, Emerson Electronics Co., Honeywell International, Inc., Legrand S.A., Lutron Electronics, Inc., Schneider Electric S.A., Siemen AG, Robert Bosch GmbH, Samsung Electronics Co., Ltd., Haier Group, Crestron Electronics, Inc., LG Electronics, Inc., etc. |
| Unit Denominations | USD Million/Billion |
Key Trends in the Middle East Smart Homes Market
Impact of Covid-19 on the Middle East Smart Homes Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries across the Middle East. However, the Smart Homes Market did not witness any major impact of the crisis. The governments of different countries in the Middle East imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease.
As a result, the market witnessed challenges like disruptions in the supply chain & lower production due to a shortage of laborers in the initial months. Additionally, since consumers cut short their expenses on non-essential items due to economic instability, the production & sales of smart home devices declined amidst the crisis.
However, stay-at-home limitations & lockdowns, on the other hand, gradually fueled the demand for smart home systems to bring more convenience & efficiency to homes. These devices enabled users to monitor their energy consumption & reduce utility bills.
Besides, the demand for smart devices like TV, video streaming sticks, & smart set-top boxes, among others, increased significantly. Moreover, people were able to avoid physical contact at doors, doorbells, lights, switches, etc., through voice controls in smart home devices.
Furthermore, the long-term effect of the Covid-19 and new sanitization & social distancing habits are anticipated to remain prevalent even with the gradually reducing cases. Hence, the market shall observe significant growth & create lucrative opportunities for the leading players in the coming years.
Market Segmentation
Based on Technology:
Of them all, Cellular Network Technologies dominated the market with the largest share in recent years. It owes to the immense popularity of the Internet of Things (IoT) due to its voice-command capabilities, increasing penetration of cellular networks, and the advent of IoT in these networks to create sensor-based communication lines between phones & smart home devices.
Moreover, the burgeoning number of internet users & the escalating utilization of voice-control technology are also instigating the adoption of smart home devices & expanding their applications, thereby driving the market through 2026.
Based on Product Type:
Here, Heating, Ventilation, & Air Conditioning (HVAC) has been a significant contributor to the market growth and is likely to prevail the same trend during the forecast period. It attributes primarily to rapid climate changes that augment the adoption of cooling systems entwined with favorable government policies promoting the adoption of energy efficiency solutions. It, in turn, is soaring the demand for smart home systems to control & manage HVAC appliances at homes.
Besides, the mounting need for temperature regulation in buildings to control humidity, increase ventilation, & enhance the overall energy efficiency, the adoption of HVAC systems is rapidly surging and, in turn, positively influencing the overall market growth.
Country Landscape
Geographically, the Middle East Smart Homes Market expands across:
Of all countries, the UAE is projected to dominate the market with the largest share over the forecast years, owing most prominently to the rapidly improving living standards of people & growing utilization of smart home solutions for greater convenience in line with luxury living.
Additionally, the mounting government focus on energy efficiency & residential infrastructural developments is also displaying an increasing number of smart city construction activities and is expected to augment the overall market growth across the UAE in the coming years.
On the other hand, Saudi Arabia is likely to attain the second-largest market share during 2021-26. It owes to the immense support from the Saudi government toward encouraging energy-efficient technologies, coupled with an increasing number of smart city construction projects, i.e., displaying an increasing utilization of smart home systems across Saudi Arabia.
Besides, the active participation of several prominent players in the market by introducing innovative products shall further propel the overall market growth in the years to come. For instance:
Recent Developments by Leading Market Players
Market Dynamics:
Key Drivers
With the advent of new technologies & advancements in smart home solutions, several countries across the Middle East are displaying an increasing adoption of smart home solutions & systems to address various concerns over home security & monitoring, which, in turn, is positively influencing the Smart Homes Market across the Middle East.
Due to rapid technological advancements like gesture control, motion sensing, energy efficiency, adjustable thermostats, user-controlled lights & door locks, among others, in smart home technology, the Middle East Smart Home Market is anticipated to grow substantially & generate remunerative growth opportunities for the leading players in the coming years.
Possible Restraint: High Costs & Compatibility Issues Associated With Smart Home Technology
The high costs of smart home products restrict their adoption & acceptance by customers. These also incur other upfront charges like installation & maintenance costs. Moreover, the installation of multiple devices & platforms, especially from different technologies, are resulting in compatibility issues & miscommunication among devices. Hence, it is another crucial aspect that might restrain consumers from adopting smart home technology and, in turn, hamper the market growth in the coming years.
Growth Opportunity: Incorporation of Property Builders & Smart Home Technology Developers to Display Profitability
With the rapidly increasing population, several ongoing & upcoming constructions projects in line with Smart City Developments are expected to promote the adoption of smart home devices, enabling the estate developers to indulge in the smart home industry. Therefore, the Middle East is likely to observe a mounting demand for customization in smart home solutions, which, as a result, would generate lucrative growth opportunities for the leading market players during 2021-26.
Competitive Landscape
According to MarkNtel Advisors’, the key players with a considerable market share in the Middle East Smart Homes market are ABB Ltd., Johnson Controls, United Technologies Corporation, Emerson Electronics Co., Honeywell International, Inc., Legrand S.A., Lutron Electronics, Inc., Schneider Electric S.A., Siemen AG, Robert Bosch GmbH, Samsung Electronics Co., Ltd., Haier Group, Crestron Electronics, Inc., LG Electronics, Inc. etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics:
Frequently Asked Questions
A. The Middle East Smart Homes Market is projected to grow at a CAGR of around 24% during 2021-26.
A. HVAC control is anticipated to emerge as an area of remunerative opportunities for the leading players in the Middle East Smart Homes Market during 2021-26.
A. The mounting utilization of technologically advanced smart home solutions for real-time monitoring of homes & other facilities is projected to significantly expand the size of the Smart Homes Market in the Middle East in the coming years.
A. In the coming years, several leading players in the Middle East Smart Homes Market are likely to introduce innovations & advancements in their Smart Home solutions, which would generate significant growth opportunities for the market.
