Smart home technology has made a major breakthrough in British mainstream culture over the past few years, reaching a new peak in 2021.
There are currently 10 million United Kingdom (UK) residents using smart home technology, which allows consumers to control appliances, thermostats, lights and other devices remotely using a smartphone.
The rapid adoption of this new technology is projected to increase in coming years, according new data from TradingPlatforms.
Home automation technology in the UK is projected to reach 63 per cent by 2025 while the number of smart home users in the UK is projected to pass 10 million users in 2021.
Smart technology has broken through the mainstream in the most developed markets around the world. In 2020, smart home penetration rate was recorded at 32.9 per cent in the UK. It’s projected to rise to 37.4 per cent by the end of the year.
Out of the six main smart home segments, ‘control and connectivity ‘ had the largest penetration rate in 2020 with 20.57 per cent. The segment includes services that are part of a home’s intelligent network such as smart speakers, central control and communication units, programmable control buttons and smart plugs.
The segment is projected to reach a penetration rate of just under 80 per cent by 2025.
Control and connectivity segment generates most revenue and users
In 2020, there were 9.6 million smart home users in the UK. This is expected to grow to 18.7 million users by 2025.
The control and connectivity segment actually had more users on its own than homes that fully qualify as a smart home. In 2020 there were six million users of control and connectivity technology, which is projected to increase to 23.7 million by 2025.
Smart home revenue amounted to $5.29 billion in 2020 and is projected to increase by an estimated 29 per cent by the end of 2021 to $6.8 billion.
From 2020 to 2025, home automation revenue is projected to have a Compound Annual Growth Rate (CAGR) of 17.63 per cent reaching almost $12 billion in 2025.
Revenue from the control and connectivity segment was also the highest in 2020 amounting to 1.58 billion and expected to rise by 30 per cent in 2021 to $2.06 billion.
The smart appliance segment was the only other segment to generate more than $1 billion in revenue, generating $1.4 billion in 2020.
TradingPlatforms Editor Rex Pascual suggested the rise in popularity correlated to the use of 5G across smart devices.
“Smart technology is becoming more and more ubiquitous in countries like the UK and the smart home ecosystem is expanding at an impressive pace,” he said.
“Further development in the industry, however still has a direct relationship with the speed of 5G implementation. Nevertheless, smart homes are no longer ‘the future of homes’ but are rather starting to become a reality of the present.”
