Home Automation Systems - Drivers, Trends, and Outlook

Updated on :July 14, 2024

The smart home landscape has changed owing to the spurred adoption of home automation systems in the aftermath of the peak pandemic period. In addition to the plea for green and sustainable living, continuous innovations in technology also support the vision of connected homes. 

The research ‘Home Automation Systems - Drivers, Trends, & Outlook’ elaborates on the increasing role of home automation technology in people's lives and the key driving forces behind the rise in the demand for smart homes. This research also explains how smart home automation systems with IoT applications provide homeowners with a new level of control and information about their homes. 

The research identifies the key trends in the home automation world that include a surge in home security solutions, smart home offices, smart home gyms, usage of home robotic assistants, smart lighting, touchless tech, and AI/IoT integrations. The research further explores the key challenges and user perceptions about home automation technology. The study also highlights the future of smart home automation and its implications on stakeholders, including new home-buyers and real-estate developers.


The innovations in the Internet of Things, surging per capita income of consumers, and prevalence of staying home/Work from home trends are the driving factors behind the growing popularity of home automation systems. The quest for luxurious and elegant smart homes has increased after the pandemic as more people stay home than ever before. Home automation systems make it possible for people to operate their houses remotely, reduce stress, make the home more comfortable, and save resources such as water and electricity.  Smart home automation systems can learn from behaviors, anticipate needs and underpin solutions with a high level of accuracy.

Home automation has its origins in smart home gadgets, which have evolved into integrated smart houses over time. Lighting, security, audio/video, and HVAC are the four functional segments of home automation today (Heating, Ventilating, and Air Conditioning). Residential use is the most common market, accounting for 60% of the home automation market(1).

The research ‘Home Automation Systems - Drivers, Trends, & Outlook’ explores the reasons behind the growing popularity of smart homes after the COVID-19 pandemic breakout. The study also elaborates on the latest trends in the home automation niche, the key driving factors for the adoption of connected homes, and the future of the home automation market with technological advancements.

Home automation stats

Home Automation Market Overview

A home automation system is a technological solution that enables the automation of electrical, electronic, and technology-based activities in a home. 

Home automation makes lights, fans, air conditioners, refrigerators, and connected remote control equipment much more convenient. Technology breakthroughs are shaping the home automation market. To improve their position, significant players in the home automation industry are focusing on developing technology solutions for home automation. 

  • Globally, there are an estimated 175 million smart homes(2)
  • In 2025, it is estimated that 77.10 million smart homes will be in the US market alone(3)
  • The worldwide home automation market will reach $85.42 billion in 2025 at a CAGR of 11.9%(4)
  • ABB, Crestron Electronics Inc., Schneider Electric, Honeywell International Inc., Johnson Controls Inc., Siemens AG, Legrand, Control4, Home Brain, Savant Systems Inc., Lutron Electronics Company, Sauter AG, United Technologies Corporation, Bosch Security and Safety Systems, Silvan Innovation Labs, Elan Home Systems LLC, Fueblabs, and Harman International are among the major players in the home automation market. 

Top Smart Home Automation Devices:

Home automation refers to homes where practically everything is connected to a network that can be controlled remotely. This includes the alarm system and all doors, locks, smoke detectors, surveillance cameras, and other connected sensors from the home security standpoint.

Let us have a look at the top smart home automation devices: 

Smart home security cameras crank up the standard security camera concept. These cameras connect to Wi-Fi or cellular networks, allowing remote viewing and control via a smartphone app. Many can also save the film to the cloud, removing the need for a potentially complex on-site storage arrangement.

Smart lighting is the best option for lighting the home with energy-saving efficiency. Smart LED bulbs have software that connects to an app, smart home assistant, or another smart accessory, allowing users to automate or control their lights remotely, removing traditional wall switches.

Smart locks are helpful and convenient, as they eliminate the need for keys. Their capacity to connect with a smartphone via Wi-Fi or Bluetooth makes them smart, allowing them to lock and unlock the house entrance from anywhere. Many also automatically lock and unlock when the phone is detected, allowing individuals to come and go without worrying about the door being shut.

Smart thermostats provide access to the house's heating and cooling systems and the ability to program the home's temperature throughout the day. This makes the house as comfortable as possible at all times of the day and night.

Robotic Assistants - These small in-home companions are helpful for various things, including academic help and schedule organizing. Cooking bots, lawnmowers, and vacuum cleaners, for example, reduce human effort and operate as helpful helpers, doing specified duties swiftly and painlessly.

Smart Home Gym - There is no official definition of "smart when it comes to fitness equipment." Still, a smart gym consists of equipment that typically includes a screen for streaming classes, Bluetooth connectivity for headphones and heart rate monitoring, advanced performance tracking or monitoring options, and an exclusive membership providing live and on-demand fitness classes.

Improved Appliance Performance - Smart homes can also enhance the efficiency of appliances. A smart TV will assist in finding better apps and channels to find favorite shows. A smart oven will help cook food perfectly without worrying about its over/undercooking and even suggest the recipe. A high-tech home theatre and audio system may make maintaining the movie and music collection a breeze when entertaining guests. Finally, using automation technologies to connect the appliances and other systems will improve appliance effectiveness and make home life more accessible and pleasurable.

Smart Home Office Technologies: The Internet of Things (IoT) is used to power smart home offices, which combine hardware and software solutions designed for hybrid work requirements. The smart home office relies heavily on cloud-based technology and a few critical smart gadgets. A variety of hardware devices are capable of supporting the software, functionality, and amount of connectivity that a smart office necessitates. 

Smart Home Monitoring & Security Devices/Tools: Most smart home security systems are built with a do-it-yourself mechanism in mind. Homeowners can install sensors on doors and windows and motion detectors and cameras, all connected to a Wi-Fi hub and managed by a smartphone app.

Burglar alarm systems and security cameras for homes help to reduce crime. Even if only one property has a burglar alarm, the surrounding region becomes less appealing to intruders. Furthermore, security measures dissuade these criminals without relocating the crime to other areas. In other words, when criminals see security systems, they usually give up.

Smart Home Healthcare Devices: COVID-19 has raised the trend toward home-based and customized touchless health tracking gadgets, allowing consumers to check their health without visiting a doctor.

  • Wearables can already monitor sleep habits and heart rate. 
  • Sensors installed in the floorboards detect falls. It was created to be used in elderly care facilities. 
  • Smart Mirror, which can check the homeowner's vision, play music, and monitor the bathwater temperature. 
  • A health app might also analyze a selfie to detect heart disease. 

However, integrating such technology directly into houses — installing health-tracking electronics in mirrors, walls, and floors — might be a step forward in creativity.

Home automation devices

Home Automation Top-Tech Trends Dominating 2022

Home automation technology has recently permeated the mainstream with advancements in machine-to-machine communication. The Internet of Things(IoT) and the evolution of increasingly powerful mobile devices have made it possible to efficiently heat and cool a home, secure it with a sturdy system, and be readily entertained inside it with a plethora of connected devices while controlling all of this remotely.

GoodFirms’ research has identified the top trends dominating the home automation market in 2022: 

#A Surge in Home Security Systems to Ensure Safety

Video surveillance is becoming a norm. 

Security cameras, video doorbells, and other security systems can alert the residents when someone approaches or enters the house. These devices can also collect evidence to document violations of a legal order or other criminal activity. These energy-saving technologies could assist in alleviating the financial hardship of living without the caretakers. 

Smart light bulbs can provide users with peace of mind by illuminating the house or room. When the user is away from home, pet cams and feeders may provide essential support or comfort and reassure the pet's health and safety.

#Focus on Smart Devices With AI and IoT Integration for Better Experience

Home automation is becoming even more common as newer technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) become more widely adopted. Companies like Apple, Google, and Amazon focus more on their smart assistants or artificial intelligence (AI) for home automation like Siri, Google Assistant, and Alexa(5). Smart gadgets with AI and IoT integration such as smart coffeemakers, IoT buttons, Smart navigation systems, smart air conditioners, Smart watering controllers, etc respond to a user's voice commands or pre-programmed AI commands. IoT frameworks provide the data to do specific tasks. Smart Homes with AI and IoT integration reduce energy expenses and increase security.

#Health and Temperature Monitoring Systems in Huge Demand After the Pandemic

The pandemic has made people more conscious and vigilant about their health and fitness needs. The sales of health monitoring systems embedded with smart home devices are getting a big boost in 2022. Temperature monitoring devices, new exercise gadgets that can track changes in bodies, and advice on a proper diet based on the needs are common elements in smart homes. Smart homes are able to detect and track changes in health. Incorporating sleep monitoring equipment into smart homes also helps see early signs of depression. Body temperatures can indicate various health issues.

#Increasing Usage of Robotic Assistants for a Hassle-Free Life

With the rise in popularity of smart home devices, domestic robots are becoming more innovative and more efficient at the jobs designed to accomplish. It is expected that the household robots market will grow to USD 9.1 billion by 2024(6). Many houses worldwide have already adopted household robots such as Foldimate and Roomba. Many ordinary chores include cleaning floors and pools, mowing the lawn, and robot assisting as a personal assistant. Every year, more companies release new robots that make life easier.

#Smart Home Offices Are Boosting Productivity

The increasing ability of smart home gadgets is paving the road for a more tech-savvy and digitally skilled workforce. While telecommuting, smart home office tools can help to improve work efficiency and foster physical, mental, and emotional well-being. This helps with the fundamentally transformed work environments caused by the pandemic. Smart home offices are easing the transition to working from home or hybrid work environments and unleashing business benefits such as increased operational efficiencies, productivity, employee well-being, etc.

#Smart Homes Fitness Gym

The pandemic sparked a new market for home fitness equipment as consumers tried to find alternatives to their shuttered gyms. Working out at home is convenient and makes it easier to work out consistently with the right fitness equipment. The smart home gym options are helping to re-create gyms and fancy studio classes at home with vibrant touchscreen displays, built-in cameras, and compact all-in-one systems. 

The home gym has been given a smart makeover thanks to high-tech capabilities enabled by Bluetooth, Wi-Fi, and AI. As a result, a "smart home gym" can offer all of the body-toning and calorie-burning benefits of a typical membership gym, including a wall-mounted HD touchscreen mirror or LCD panel to make home exercises more effective. 

#Smart Light Systems to Save Energy Consumption

Smart lights and home automation systems work together to make your home a little brighter and more efficient. Smart lights can be controlled through a home automation system, so users can turn them on or off when not at home.

Users can even set timers to turn the lights off during certain hours, like going to bed. By installing smart lights, you can control the brightness and temperature of individual rooms from anywhere using an app on your phone. This can save energy by keeping rooms at optimal temperatures for the people who are using them. 

 smart lights

Any smart bulb or LED-integrated fixture may be monitored and controlled using Google Assistant, Amazon Alexa, or smartphones.

#Touchless Smart Home Devices Ensure More Hygiene and Help Contain the Spread of the Virus 

Touchless home automation is the latest trend in smart home technology. It lets you control devices without touching them. This works by using sensors and cameras to recognize gestures, movements, and voice commands. The devices may also use artificial intelligence (AI) to learn your habits and preferences over time. Touchless home automation is ideal for people with limited mobility or those who have messy hands. It is especially useful for the kitchen, bathroom, and entryway. 

Touchless hand sanitizer dispensers are easy to use, dispense sanitizer quickly, and reduce the risk of spreading germs. Touchless sensor doorbells are another excellent option for anyone who wants to keep their hands off surfaces and keep germs at bay. People can also use touchless home automation for tasks like turning off lights, locking doors, and adjusting thermostats. These products also keep your home clean and germ-free, which is especially important if people have young children or members of a household with compromised immune systems.

Home Automation: Top Driving Factors

The Value Proposition of Connected Homes

The vision of a seamlessly connected home powered by intelligent devices is exciting.  From energy efficiency quotient to comfort, safety and wellness, the idea that drives home automation is rooted in creating self-sustained home ecosystems. Multiple projections for the growth of the home automation industry show high positivity, with the ongoing pandemic and life events being the top reasons driving the growth. 

During the pandemic, 70% of people changed their living environment due to spending more time at home, and 51% said they bought at least one smart home device(7).

Let us explore the top factors driving the home automation revolution:  

Stay-at-Home Mandates and Work From Home

Stay-at-home orders during the peak covid phase transformed the way people interacted and lived in their homes, causing them to rearrange their physical space to fulfill new functional requirements like working and learning at home, setting up at-home gyms, and finding new ways to relax and enjoy themselves. Moving ahead of the times of pandemic, consumers are continuing to embrace the concept of connected homes to make their lives easier, more pleasant, and more secure. Homeowners can now use their mobile phones to control, manage, and monitor their homes. 

Convenience: Control of All the Home Devices From One Location

The convenience factor is huge here. Integrating all of the house's equipment through a single interface is a huge step forward for technology and home management. People just need to learn how to use one app on their smartphone or tablet to access many functions and gadgets across their homes. This reduces the learning curve for new users and makes it simpler to get the features they want for their homes.

Easy Upgrades: Smart Home Technologies are Notoriously Adaptable

The ability to upgrade systems as and when requirements change the type of flexibility that will genuinely make the home smart. A wireless smart home system is one of the best options for adaptability(8). It's simple to set up and grow without worrying about rewiring or breaking down walls. Because all smart devices connect directly to the IP network, Wi-Fi-based controllers eliminate an additional smart home hub. 

Hyper-personalization offered by Smart Home Automation Companies 

The main driving factor of smart home technology is creating a precisely matched setting to user needs. Smart devices can respond to a specific user's customized demands and preferences, depending on the gadget. Users can generate mood lighting for any occasion or turn on the big game with their voices. Smart appliances can also be programmed to switch on and off at specific periods.

The Creed For a Healthy and Improvised Lifestyle

Smart dwellings can provide people with the necessary lifestyle enhancement. It helps prevent numerous unpleasant duties by employing smart devices and improving house management's flawless performance. Checking in on aging loved ones and youngsters gives them peace of mind and confidence that they are secure and independent(9). This made it more critical during the Coronavirus pandemic's quarantine limitations. Some of these smart technologies are still in their infancy, but the smart home of the future is on its way.

A Plea for Green and Sustainable Living

Residents are now considering it their personal responsibility to favor the environmental cause and adopt green and sustainable measures in their lifestyles. Smart home automation systems optimize energy usage, and therefore, many homeowners are considering their deployment to extend their support for green and sustainable living.

Adoption of Smart Home Automation: 

Getting Rid of the Superfluous and Adopting the ‘Real Smart’

Thanks to the growing number of IoT devices available today, a smart home no longer requires a complex setup. The 'DIY' option is ideal and cost-effective; there are many smart gadgets, such as IoT bulbs or LEDs, remote-control cameras, and surveillance systems, that people can set up by themselves, usually via an app. These products include smart light bulbs and wireless speakers. Smart thermostats, for example, will require some wiring by a competent electrician, and then everything can be arranged easily online. Some of  the other IoT devices are stated below:

  • While installing a CCTV system for a home might be costly, installing individual security cameras is simpler. Mi and Yi have alternatives with various capabilities that don't require lengthy setups—just put them in, configure the WiFi, and it's done(10).
  • Several companies sell connected smart bulbs. Because they're connected, they can use voice commands or an app to turn them on and off, and some of them even let people manage the brightness, color output, and schedule on/off.
  • A smart speaker can serve as the hub for the home automation system. The Google Home and the Amazon Echo offer voice command control with compatible smart devices (smart lights, fans, plugs, and remotes) that serve as the best options(11)
  • A smart plug plugs into an existing socket to provide smart control for any connected device. Any home device, such as a coffee maker, air conditioner, lamp, or fan, can be connected to a smart plug and turned on or off remotely using an app or voice commands.
  • A touch panel can control gadgets, and a linked switch is an option. It eliminates the need for reconstruction. Just use an app to maintain the appliances connected to the controller.
  • A smart doorbell with a camera, speaker, and microphone is another cost-effective smart device.

Key Challenges and User Perception

#Perceived Intrusiveness:

While the smart home industry strives to develop non-intrusive or least-intrusive systems, fear issues are still far from over for many privacy-conscious users. Home automation systems deploying sensors, surveillance devices, video cameras, etc., can be perceived as an intrusion of privacy and security. Perceived intrusiveness stems from the continuous monitoring and tracking of user data which can be misused.  

This risk is even greater if your home automation system is connected to a voice assistant like Amazon Alexa or Google Home. These devices are always listening for their wake word, so a savvy hacker could exploit this feature to gain access to your device.

#Hacking Fears

Smart home technologies integrate home appliances, lighting, security, and other devices to provide homeowners with automated services. These technologies allow consumers to control their homes remotely, perform tasks automatically, and save time. As more devices are connected to the Internet, hackers can access these devices through software, hardware, or operating systems. 

The first vector involves the device itself. Hackers can exploit software or hardware vulnerabilities to gain access to the device. For example, hackers could exploit a software vulnerability by installing malicious software that gives them remote access to the device.

The second vector involves the connected devices. Hackers may connect their devices to the same smart home network as other devices to access information and take advantage of common vulnerabilities. For example, hackers could exploit a device’s security vulnerability by connecting to it through a network, such as the Internet, and taking advantage of its operating system or software vulnerabilities. 

Integrating home appliances and smart home devices can increase the risk of multiple devices being hacked. The more devices connected to the same smart home network and the more devices accessible through the same software or hardware vulnerabilities, the greater the risk. 

#Compatibility and Interoperability issues:

No global framework for home automation compels manufacturers to follow universal guidelines. Home automation devices from different manufacturers may not sync for centralized connectivity. The devices are often different, the wiring is different, and the protocols are different.

A collection of siloed devices isn’t a smart home — it’s just a home filled with onerous technologies-Forbes(12).

#Expensive Technology

Home automation systems are expensive, and it can take a long time before they pay for themselves. Even basic automated systems can cost several thousand dollars to set up and maintain. A comprehensive system including cameras, locks, and appliances could cost thousands of dollars. Additionally, if anything goes wrong with the system, it could be difficult to troubleshoot and fix. Additionally, if users want a fully automated home, they need to invest in a wide range of different products, from smart thermostats to smart lighting systems. However, with advancements in technology and scale of use, the costs will come down. 

Today’s Smart Home is a Veritable Home of the Future

The future of home automation is here — and it’s better than you think. Thanks to the convergence of tech and the home industry, we’re now at an exciting point in the future of home automation. The growing popularity of smart home technology is a boon for users who benefit from connected thermostats, security cameras, and other gizmos that make managing everyday tasks easier. From smart speakers that can control users’ favorite music services to smart locks that can keep their homes secure, modern homes are likely filled with devices that make it easier for users to get things done. It’s fair to say that the future of personal smart cities is already here and that we can expect the trend only to continue growing in the years to come.

Home automation systems stats

Implications of Smart Homes for Real-Estate Developers 

Home automation is steadily becoming the norm in the real estate industry, and home purchasers' expectations are rising. Home automation systems and devices have the most significant impact on real estate because they increase resale value. The resale value is always crucial for an investor(13). House automation is gradually becoming more common, and homebuyers recognize the advantages of investing in a smart home. It is beneficial to include home automation features and amenities in the house.

Along with the property's location, market, condition, neighborhood, and age, technology is considered when establishing its market worth. A house with smart home gadgets will undoubtedly be more valuable than one without. Consumers of all generations and communities are now adopting home automation products and systems.

Smart Homes will be Providing More Virtual Experiences

Home computers and small form factor servers are becoming an essential aspect of home technology, with always-on characteristics and the ability to provide services to other devices and applications. These virtual machines could replace actual equipment for home entertainment and media servers, support remote healthcare services, etc. Virtualization has a variety of possible applications in smart home settings.

Virtualization technology could help realize the idea of invisible computing in the smart home. Although many companies are adopting and taking advantage of virtualization's benefits, the smart home industry still has a lot of room for growth.

Smart Homes Will Be Embedded With Smart Home Office Facilities 

Fundamentally, the construction of office spaces and homes is managed differently. However, with hybrid working environments becoming norms, futuristic builders and real-estate developers are creating smart residential properties that have embedded office facilities. Using home automation technologies such as smart notepad and pen, smart timekeeper, video doorbell, smart automated chairs, etc., residential builders are creating spaces that can also work as smart offices.

Key Findings

  • Home automation is on the rise.
  • Smart devices are becoming more accessible, and the amount of data available has been growing exponentially.
  • Smart home technology has become more mainstream than ever, and the market is continuing to grow.
  • The number of people interested in automating their homes to make them more convenient will only increase.
  • Home automation is pushing the boundaries of connectivity, and IoT is one of the driving factors.
  • Stay-at-home mandates, work-from-home, and creed for improved health fitness are major drivers of the home automation revolution. 
  • Easy upgrades and personalization offerings further boost the home automation market expansion.
  • Perceived intrusiveness, hacking fears, expensive tech, and interoperability issues are key challenges that deter the fast adoption of home automation systems. 
  • With an increasing number of smart devices in our homes and the rising expectations of future users, home automation system vendors need to stay up-to-date.
  • The latest home automation system trends are here to stay, and there are plenty of positive outcomes for both consumers and vendors alike. 
  • Home automation systems and devices have the most significant impact on real estate because they increase resale value.
  • Smart home technology offers convenience and security advantages to homeowners.
  • Smart homes embedded with automated technologies can also serve as smart home offices. 


The development of connected homes was an essential step in the 2010s. The opportunities for consumer home automation to make life easier and more enjoyable will continue to expand as technology advances. Home automation technologies have the potential to make homes even smarter in the future. The modern home is progressively becoming automated. Sensors such as motion sensors, light sensors, and temperature sensors can be integrated into homes to allow automated device switching based on conditions.

List of top IoT development Companies

People are now more aware of smart homes, and their demands and expectations are rising each day. Smart home automation gives access to high-tech functionality and luxury that people couldn't have before. Customers are so interested in smart home technology that the world's biggest IT companies and entrepreneurs are trying to outdo one another. As a result, bigger and better smart home technology is being introduced to fulfill digital needs, and the market is exploding.


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  13. https://www.researchgate.net/publication/260298402_The_role_of_Smart_Home_in_Smart_Real_Estate


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