The smart home and smart building sectors are on the verge of significant growth. “We are at the very beginning of a steep upward curve in smart home and building applications,†said Dr. Eric Mounier, senior technology and market analyst at Yole. As a crucial part of the global IoT ecosystem, the smart home and smart building market is expected to see substantial expansion in the coming years.
Sensors and related modules play a vital role in this development by collecting vast amounts of data, which are essential for achieving efficient energy management and enhanced security in smart environments. According to Yole, there are three key areas where sensors can make a difference: comfort, energy control, and safety.
Yole predicts that the smart sensor market, particularly those used in smart homes and buildings, will reach $1.73 billion by 2022. Additionally, revenue from subscription and service models based on sensor data applications is expected to hit $11 billion during the same period.
Sensor innovation is also driving the growth of voice-activated personal assistants. For instance, Amazon sold 4 million Alexa devices in 2016, with over 1 million units shipped in just December of that year.
Despite the promising outlook, Yole's MEMS and sensor teams have identified several challenges that could hinder industry growth. Recently, Yole released a detailed report titled *“Sensors and Sensing Modules in Smart Homes and Smart Buildings,â€* which explores connected home, building, and office applications. The research provides an in-depth look at the value chains, infrastructure, and key players involved in this space.
Dr. Mounier noted that the supply chain for smart homes and buildings is highly complex and fragmented, involving everything from raw material suppliers like concrete producers to software and IT companies such as IBM and Cisco. These companies are increasingly entering the market, creating intense competition between traditional building management system (BMS) vendors and tech giants like GAFAM (Google, Apple, Facebook, Amazon, Microsoft).
Traditional manufacturers of building control equipment are well-established in the use of smart sensors. However, GAFAM and IT firms bring a new level of intelligence through their software and solutions. These companies are leveraging artificial intelligence to analyze large volumes of data generated by smart homes and buildings, extracting valuable insights and offering new services to end users. Moreover, they are bypassing traditional construction channels by selling directly to consumers through online platforms.
Other traditional players in the supply chain are also getting involved. Even though they may not be in the electronics sector, some raw material suppliers are starting to integrate smart components into building materials to add extra functionality. Yole’s analysts highlighted the growing interest from energy providers, internet service providers, and telecom companies, who are exploring ways to enter the smart home market by focusing on household energy usage and connectivity.
With so many players entering the space, the smart home and building market is becoming more dynamic and competitive than ever before.
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