Germany Smart Home Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 8.65 Billion |
| Market Size (2029) | USD 15.45 Billion |
| CAGR (2024 - 2029) | 12.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Germany Smart Home Market Analysis
The Germany Smart Home Market size is estimated at USD 7 billion in 2024, and is expected to reach USD 15.45 billion by 2029, growing at a CAGR of 12.30% during the forecast period (2024-2029).
- The key driver of the smart home market in Germany is the rising awareness and adoption of IoT technology. German consumers are becoming increasingly familiar with connected devices that can improve their quality of life by providing convenience, security, and energy efficiency. Smart speakers, such as those powered by Amazon Alexa and Google Assistant, are among German households' most popular IoT devices. These devices are the central hubs for controlling other smart home devices, including lighting, heating systems, and security cameras.
- Germany's robust economic stability is fueling a surge in consumer spending on smart home technologies. Boasting one of Europe's highest GDPs, the country's ample disposable income is paving the way for substantial investments in smart home devices. Moreover, Germany's aging population is reshaping the market dynamics, driving a heightened demand for smart home solutions tailored to the needs of the elderly, prioritizing both comfort and safety.
- Energy efficiency is a critical factor propelling the smart home market in Germany. With rising energy costs and a strong cultural emphasis on sustainability, German consumers are particularly receptive to smart home solutions that help reduce energy consumption.
- The German Buildings Energy Act serves as a pivotal tool in the nation's energy and climate protection strategies. Its primary objective is to facilitate the realization of the Federal Government's energy goals, notably aiming for a predominantly climate-neutral existing building inventory by 2045. Additionally, the act targets approximately a 40% reduction in final energy consumption through efficiency enhancements in the building envelope and construction technology by 2045 compared to 2020 levels.
- Security concerns are another major factor contributing to the market growth. The increasing need for home security has led to a surge in demand for smart security systems. According to European Crime Statistics, police-recorded crimes against property in the EU have increased, with thefts rising by 17.9 %, robberies by 9.7 %, and burglaries by 7.4 %. Smart home security products offer advanced features such as real-time monitoring, remote access, and automated alerts, which significantly enhance the safety and security of homes.
- The market is poised for growth, driven by technological advancements, energy efficiency standards, and an increasing focus on home security. While challenges such as high costs and data privacy concerns remain, the overall market environment is favorable. Continued innovation, supportive government policies, and increased consumer awareness are likely to sustain the momentum.
- The rising inflation rate has increased the cost of goods and services, including smart home products. Higher costs lead to reduced purchasing power for consumers and businesses, slowing down the market growth. Further, the ongoing war between Russia and Ukraine has disrupted the global supply chain, particularly affecting the availability and cost of electronic components and raw materials used in smart home products. This is leading to delays in production and increased costs for manufacturers. Such factors are anticipated to restrict the growth of the market for a short period of time.
Germany Smart Home Market Trends
Smart Energy Management is Expected to Drive the Market
- Smart energy management systems are becoming increasingly popular as the country advances toward its ambitious climate goals and the widespread adoption of renewable energy. These systems, which integrate advanced technologies to monitor, control, and optimize energy use in homes, are pivotal in creating an energy-efficient and sustainable living environment.
- One of the primary trends shaping the market is the country's robust commitment to renewable energy. The country's energy transition emphasizes reducing reliance on fossil fuels and increasing the use of renewable energy sources such as solar power. Smart home energy management system enables homeowners to manage and utilize renewable energy efficiently.
- Smart energy management systems can optimize the use of solar panels by storing excess energy in batties for later use or feeding it back into the grid during peak times, thereby maximizing both energy efficiency and cost savings. For example, Bosch, which is a German company, provides an energy management setup service that uses a house's Wi-Fi network to communicate with other smart appliances, such as indoor unit heat pumps, etc, and the smart home management system feeds the surplus power to the public grid. According to the company, its energy management system can cover up to 50% of annual energy needs using electricity generated locally.
- Government policies and initiatives are also shaping the market. The German government has introduced various subsidies and incentives to encourage energy efficient technologies in households. For example, in 2023, the German goverment approved subsidies of EUR 18.9 billion for the building sector to encourage the construction of new energy efficient buildings and the renovation of existing buildings.
- According to the German Solar Association, the number of solar batteries doubled in 2023 to reach 1 million. The report also stated that the total number of solar batteries installed and their storage capacity have doubled in just one year. Installation of smart energy management systems corresponds with the installation of solar batteries. Additionally, according to data published by BMWK, the cumulative installed capacity of solar photovoltaic systems reached the 82,191 MW peak in 2023. These investments are a part of the country's green transition as it aims to become carbon neutral by 2045. These government initiatives and programs are expected to drive the market and will be conducive to its growth.
- Consumer awareness and demand for sustainable living solutions are also propelling the market. As environmental consciousness grows, more German consumers are seeking ways to reduce their energy consumption and carbon footprint. According to a recent survey conducted by Gfk, more Germans are saving in anticipation of higher energy bills. Due to tensions in the eastern part of Europe, consumers have become conscious about how they use electricity, and the sentiment favors efficient use of it. This is expected to drive the adoption of smart energy management systems as consumers try to cut down on electricity costs by investing in energy-efficient solutions.
Smart Security is Expected to Witness an Increase in Demand
- Increasing consumer awareness of security, technological advancements, and the rise of IoT devices are driving the market. This market offers a variety of products and services, from smart locks and surveillance cameras to motion sensors and integrated security systems aimed at bolstering residential safety and convenience.
- German consumers are increasingly concerned about home security, driven by a growing burglary rate. In 2023, Germany saw a notable uptick in violent crime, with reported cases reaching 214,099, marking an 8.6% surge, the highest in 15 years, according to Bundeskriminalamt data.
- Furthermore, cases of intentional, simple bodily harm rose by 7.4%, totaling 429,157. Overall, Germany recorded 5.94 million crimes in 2023, a 5.5% increase from 2022 and a 9.3% jump from 2019. Notably, Berlin witnessed a staggering 35.2% surge in burglaries, leading the nation. Smart home security products, with features like real-time monitoring, remote access, and automated alerts, are reshaping the security landscape. These systems, offering unparalleled security and control, are outpacing traditional security measures.
- In 2023, the General Association of the German Insurance Industry (GDV) reported an average burglary damage of EUR 3,350. Bosch Germany, a key player, offers robust burglar protection products, including Motion Detectors, Door/Window Contact II for break-in alerts, and a 100dB Outdoor Siren with red LED lights.
- The market segment is on a growth trajectory, buoyed by rising security concerns, tech innovations, and IoT adoption. Strong government backing and stringent data protection laws further bolster the market's potential. While challenges like high costs and installation complexities persist, the market's overall outlook remains positive.
Germany Smart Home Industry Overview
The German smart home market is highly competitive, driven by high disposable incomes and tech-savvy consumers who prefer a range of options. Major players such as Samsung and Amazon compete with other international and regional companies by offering diverse smart home devices and integrated systems tailored to local preferences. The competition is intensified by the fast pace of technological advancements and the growing consumer demand for innovative, cost-effective, and energy-efficient solutions.
- In March 2024, Schneider Electric unveiled the upgraded Back-UPS BE Series - 900 & 1050 VA, catering to remote work and smart home needs. With increased power capacity, they ensure uninterrupted connectivity for critical devices. The modern design optimizes space with stackable surfaces. Users benefit from enhanced convenience with USB charging ports and a user-friendly interface signaling UPS status. Moreover, the series prioritizes sustainability, meeting stringent energy efficiency standards. The inclusion of PowerChute Serial Shutdown software aids in utility bill savings.
Germany Smart Home Market Leaders
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Schnieder Electric
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Honeywell International Inc.
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Siemens AG
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Google LLC (Alphabet Inc.)
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Robert Bosch Smart Home GmbH
*Disclaimer: Major Players sorted in no particular order
Germany Smart Home Market News
- April 2024: Samsung launched Bespoke AI appliances, integrating Wi-Fi, internal cameras, and AI chips for enhanced connectivity and user experience. The AI Home, a 7-inch LCD display, facilitates intuitive control of connected devices, featuring a 3D Map View for easy appliance navigation. Mobile Smart Connect sends alerts to smartphones for quick appliance control. 'Calm Onboarding' simplifies product registration, while the Knox security platform ensures data protection.
- March 2024: IKEA introduced its new TRETAKT Plug online in the EU. Bundled with a RODRET remote control, the plug enables remote control of household devices via smart home devices, voice assistants, or the IKEA Home smart app. Pairing with DIRIGERA or TRADFRI gateways allows access to app controls. With a white plastic casing, it offers a built-in on/off button and a maximum output of 3,680W.
Germany Smart Home Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Impact of Aftereffects of the COVID-19 Pandemic and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Government Subsidies
- 5.1.2 Increasing Consumer Awareness about Energy Efficiency
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5.2 Market Challenges
- 5.2.1 High Installation and Replacement Costs
6. MARKET SEGMENTATION
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6.1 By Product
- 6.1.1 Comfort and Lighting
- 6.1.2 Control and Connectivity
- 6.1.3 Energy Management
- 6.1.4 Home Entertainment
- 6.1.5 Security
- 6.1.6 Smart Appliances
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Robert Bosch Smart Home GmbH
- 7.1.2 ABB Ltd
- 7.1.3 Schneider Electric SE
- 7.1.4 Honeywell International Inc.
- 7.1.5 Emerson Electric Co.
- 7.1.6 Siemens AG
- 7.1.7 Google LLC (Alphabet Inc.)
- 7.1.8 LG Electronic Inc.
- 7.1.9 Samsung
- 7.1.10 United Technologies Corporation
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Germany Smart Home Industry Segmentation
A smart home uses internet-connected devices to enable remote management and automation of household systems such as lighting, heating, security, and entertainment. These devices, which can be controlled via smartphones, tablets, or voice assistants, communicate with each other to optimize energy usage, enhance convenience, and improve security. The integration of IoT technology allows for seamless interaction and personalized control, making everyday tasks more efficient and convenient. The study tracks the revenue accrued through the sale of smart home products in Germany by various players. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
Germany's smart home market is segmented by product (comfort and lighting, control and connectivity, energy management, home entertainment, security, and smart appliances). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Product | Comfort and Lighting |
| Control and Connectivity | |
| Energy Management | |
| Home Entertainment | |
| Security | |
| Smart Appliances |
Germany Smart Home Market Research FAQs
How big is the Germany Smart Home Market?
The Germany Smart Home Market size is expected to reach USD 8.65 billion in 2024 and grow at a CAGR of 12.30% to reach USD 15.45 billion by 2029.
What is the current Germany Smart Home Market size?
In 2024, the Germany Smart Home Market size is expected to reach USD 8.65 billion.
Who are the key players in Germany Smart Home Market?
Schnieder Electric, Honeywell International Inc., Siemens AG, Google LLC (Alphabet Inc.) and Robert Bosch Smart Home GmbH are the major companies operating in the Germany Smart Home Market.
What years does this Germany Smart Home Market cover, and what was the market size in 2023?
In 2023, the Germany Smart Home Market size was estimated at USD 7.59 billion. The report covers the Germany Smart Home Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany Smart Home Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Germany Smart Home Industry Report
Statistics for the 2024 Germany Smart Home market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Germany Smart Home analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
