Philippines Smart Home Market Research Report: Forecast (2025-2030)

Market Definition

A smart home is a convenient and suitable home, equipped with intelligent appliances & devices that can be operated remotely from any place using any device that is connected to the internet and consumers are allowed to control their thermostats, lighting, door locks, cameras, and entertainment using this device. These devices & appliances help enhance the appliance functionality and energy efficiency, supervise the security, centralize operational control, allow real-time motion detection and surveillance, and notify during flood & leakage.

Market Insights & Analysis: Philippines Smart Home Market (2025-30)

The Philippines Smart Home Market size is valued at around USD 250 million in 2024 and is projected to reach USD 350 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 7% during the forecast period, i.e., 2025-30. The smart home is the new way to reduce energy use, which is increasingly adopted globally in the era of innovating ways for energy efficiency. The problem of meeting the energy demand is rising owing to the rise in electronic devices and the use of electric vehicles.

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Thus the tools with energy efficiency are preferred by governments as well as individuals to meet the local demands and deal with the power limitations. The same trend is popular in the Philippines as well, which is currently facing the power crisis problem. Malampaya gas field of the country fulfills major demand for electricity & natural gas for the country, but the same is expected to run dry and leave the hand by 2027, creating an energy crisis for the country.

Thus, these crises paved the way for the promotion of smart homes and appliances to be used by individuals and promoted by governments and organizations. Smart home appliances are not only energy-efficient but also provide immense convenience and control over home appliances to consumers. The enhanced control offered with customized managing powers is attracting consumers towards smart home appliances. They offer a reduction of 20-30% in electricity bills. In 2022, around 8.8 % of individuals owned at least one smart home device in the Philippines, which rose to 10.4% in 2023. Further, it is expected that more than 4 million consumers will own smart home devices by 2026, raising the penetration rate of smart home devices to around 16%. This significant change reflects the increasing popularity and adoption of smart home devices in the country.

Philippines Smart Home Market Driver:

Increasing Demand for Energy-Efficient Smart Appliances – Smart home, a concept combining smart appliances such as smart lighting, smart doorbells & locks, smart dryers, smart bulbs, and smart heaters is increasingly gaining traction in the country. The desire to reduce the energy costs of appliances is raising the demand for these smart appliances & devices. The smart home appliance offers optimized use of energy. Along with it, they can easily be accessed and controlled by the use of the internet from anywhere. With the rise in population & energy crisis in the country, the electricity demand is high so the focus is on the use of energy-efficient devices and appliances. Thus, the government is also investing in energy efficiency. As per the Department of Energy (DOE), the investment in energy efficiency technology was USD 120 million in 2023. Thus, these rising investments and the focus on energy efficiency are driving the growth & expansion of the Philippines Smart Home Market.

Philippines Smart Home Market Opportunity:

Rising Traction on Smart Devices Based on the Internet of Things (IoT) – The use of smart devices and appliances based on the Internet of Things (IoT) increases convenience for consumers based on their ability to give real-time updates and offer enhanced controls that can be managed remotely. It increases the control of consumers on their devices with customization options and is energy-efficient as well. Thus, the inclination of consumers towards the use of IoT & smart devices including smart refrigerators, smart locks, smart thermostats, smart kitchen appliances, smart drying & washing appliances, smart lights, etc. is increasing in the country. Moreover, it is expected that the rising adoption of these devices will provide ample opportunities for growth in the future for the smart home device manufacturing companies in the country.

Philippines Smart Home Market Challenge:

Suspected Security Risks & Associated Bugs to Hinder the Market Growth – The higher use of smart home devices makes personal data and information available for misuse by hackers. Data on these smart devices including personal, health, and safety information is saved on the cloud which increases the chance of security breaches. The Philippines is highly prone to data breaches and comes at 29^th among all 250 countries and had almost 385,000 data breaches from 1^st April to 30^th June in 2024. These statistics indicate the possible threats related to the increased use of cloud-based smart appliances & devices. Thus, these challenges are hindering the market growth & expansion.

Philippines Smart Home Market Trend:

Enhanced Features & Benefits Offered by Video Doorbells – Security of homes and buildings is given more focus these days. Thus, companies are providing video doorbells with more attractive features. These smart doorbells can be connected to mobile phones and managed remotely. Further, they provide the feature to talk to the visitor at the gate and take photographs. Also, in the absence of homeowners, they provide automated responses. Moreover, they enhance security by providing the details of visitors to homeowners in case of forceful entry. Almost all companies such as ABB Ltd., Siemens AG, Schneider Electric S.A, etc. are providing these smart doorbells with differentiating features. So, the increasing popularity of smart doorbells is attracting a wide base of prospective consumers and changing market outlook & dynamics.

Philippines Smart Home Market (2025-30): Segmentation Analysis

The Philippines Smart Home Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the country level. Based on the analysis, the market has been further classified as:

Based on the Product Type:

• Entertainment Controls
• Security & Access Control
• HVAC Control
• Smart Home Appliances
• Smart Kitchen
• Smart Lighting Control
• Smart Furniture
• Others (Smart Plugs, Smoke Detectors, Smart Meters)

The leading share among all the major types of products in the Philippines Smart Home Market is held by the HVAC Control type products, and accounts for almost more than 30% market share. Also, it is estimated that the segment of HVAC control will dominate in the forecast period. This large share is associated with the increasing penetration of devices related to the control of heating ventilation and air conditioning (HVAC). These devices include smart thermostats, control valves, actuators, heating & cooling coils, dampers, smart vents, pumps & fans, sensors, etc. This increased share is also augmented by the procurement of these HVAC control devices is also for advanced air conditioning & heating units in buildings.

Based on Technology:

• Wired Home Automation
  • Power Line Home Automation
  • Network Cables Home Automation
• Wireless Home Automation

Wired home automation technologies account for more than 50% market share and are the largest among all. This provides greater reliability and enhanced security compared to others. In the absence of an owner, they can be controlled remotely from any place with the use of smartphone-based mobile applications. Also, real-time and accurate monitoring is provided by the network cable home automation. Further, these associated benefits will provide leverage in the forecast period as well, and keep the share high for wired home automation.

Philippines Smart Home Industry Recent Development:

• 2024: ABB Ltd. free home integrates into Samsung’s smart things platform, benefitting the resident with easier smart home device management.
• 2023: Johnson Controls has partnered with Primer Group for the expansion of its sustainable building and infrastructure solutions portfolio in the Philippines.

Gain a Competitive Edge with Our Philippines Smart Home Market Report

1. The Philippines Smart Home Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. The Philippines Smart Home Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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