Europe Home Automation System Market
Europe Home Automation System Market by Product (Lighting Controls, Smart Speakers, Entertainment & Other Controls, HVAC Controls, Security & Access Controls), Protocol (Wired, Wireless), System Type (Behavioral, Proactive) - Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The Europe home automation system market is projected to reach USD 18.23 billion by 2030 from USD 14.41 billion in 2025, at a CAGR of 4.8%. Growth is being fueled by increasing demand for comfort, security, and energy savings. Widespread use of smartphones, reliable broadband, and connected devices makes it easier to adopt home automation solutions. Rising energy prices and sustainability goals are boosting demand for smart lighting, HVAC, and energy management systems. Additionally, strong participation from major technology players and the availability of DIY installation options are accelerating market expansion.
KEY TAKEAWAYS
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BY COUNTRYItaly is projected to register the fastest growth rate of CAGR of 5.6% during the forecast period.
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BY SYSTTEM YPEThe behavioral segment held the largest market share of 97.3% in 2024.
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BY INSTLLATION TYPEThe new installation segment held the largest market share of 65.4% in 2024.
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COMPETITIVE LANDSCAPEJohnson Controls Inc., Schneider Electric, and Siemens were identified as star players in the Europe home automation system market, given their strong market share and product footprint.
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COMPETITIVE LANDSCAPESavant and Develco Products have distinguished themselves among startups and SMEs due to their strong product portfolio and business strategy.
The Europe home automation system market is growing due to increasing demand for energy efficiency, home security, and comfort among homeowners. Rising energy prices and strict sustainability targets are encouraging the adoption of smart lighting, HVAC, and energy management solutions. Strong broadband penetration, widespread smartphone usage, and supportive government initiatives for green buildings are further accelerating market adoption.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
This section highlights key trends and disruptions shaping customer businesses in the European home automation system market. Demand for smart lighting, smart plugs, smart thermostats, and basic security devices remains strong, while the market is gradually shifting toward integrated home automation platforms and subscription-based services. Rising internet penetration, expanding smart home ecosystems, and improving device affordability are accelerating adoption across residential households. Furthermore, advancements in AI-driven automation, connected ecosystems, and app and voice-based control are enhancing system interoperability, personalization, and user experience. These disruptions are enabling solution providers, system integrators, and residential developers to deliver seamless integration, energy efficiency, enhanced safety, and remote monitoring, supporting sustained revenue growth for home automation manufacturers and ecosystem players over the forecast period.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Incorporation of AI in home automation in Europe
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Increasing demand for energy-efficient devices
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High upfront costs
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Complexity and glitches in setting up home automation systems
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Growing inclination toward remote working
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Surging adoption of home automation solutions to support elderly care and independent living
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Cybersecurity concerns
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Increasing demand for energy-efficient devices
The Europe home automation system market is experiencing strong growth driven by rising demand for energy-efficient devices, as consumers and builders prioritize sustainability amid high energy costs and EU green building directives. Smart thermostats, lighting controls, and HVAC systems allow precise energy management, reducing consumption by optimizing usage based on occupancy and weather patterns in residential and commercial spaces. This trend is fueled by government incentives such as the EU Green Deal and national rebates, encouraging widespread adoption in urban areas where energy conservation is a key concern for households and developers.
Restraint: High upfront costs
High upfront costs represent a significant restraint in the Europe home automation system market, as the initial investment in hardware, installation, and integration often deters mid-income households and small property developers from full adoption. Wired systems require professional setup and may require home modifications, while even wireless options, such as smart locks and hubs, can add up with multiple devices. In a region with diverse housing stocks, including older buildings, retrofit expenses can be prohibitive, slowing market penetration despite long-term savings on energy and security.
Opportunity: Growing inclination toward remote working
The shift to remote working presents a major opportunity for the Europe home automation system market, as hybrid work models increase demand for intelligent home offices with automated lighting, climate control, and security features that enhance productivity and comfort. Devices such as smart desks, video conferencing integrations, and occupancy sensors allow seamless transitions between work and home life in compact European apartments.
Challenge: Cybersecurity concerns
Cybersecurity concerns pose a key challenge in the Europe home automation system market, as interconnected devices such as cameras, locks, and hubs are vulnerable to hacking, potentially compromising user privacy and home safety. Strict GDPR regulations require robust data protection, but many consumers fear breaches from poorly secured IoT ecosystems, especially with increasing reports of ransomware attacks on smart homes. Manufacturers must invest in encrypted protocols and regular updates, yet varying standards across vendors complicate trust-building and slow broader market acceptance in privacy-conscious European households.
EUROPE HOME AUTOMATION SYSTEM MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Deployment of voice-controlled home automation solutions across single-family and multi-family residences in Europe, enabling centralized control of lighting, HVAC, appliances, and entertainment systems through smart assistants | Improved user convenience| hands-free operation | enhanced accessibility | seamless interoperability across devices | better comfort management |
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Implementation of connected home security and monitoring systems across residential properties, integrating smart alarms, cameras, access control, and emergency alerts tailored to European safety standards | Enhanced home security|real-time alerts | reduced false alarms | improved occupant safety | reliable remote monitoring |
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Deployment of energy management and home automation systems across residential buildings and smart housing projects, integrating lighting, power distribution, HVAC, and energy analytics | Improved energy efficiency |lower electricity consumption | reduced carbon footprint | compliance with EU sustainability regulations | optimized energy management |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
Home automation systems are built around a specific protocol or technology. They include both wired and wireless protocols. Different protocols also define the compatibility for different types of home automation control systems on-premises (centralized connectivity) or cloud-based (remote connectivity). Suppliers provide hardware components, such as sensors, timers, and dimmers, for home automation systems. The finished product is distributed through a supply chain network. The supplier ecosystem and supply chain network depend on the type of home automation products manufactured and distributed. For instance, DIY home automation systems are often mass-produced and are available from a variety of third-party retailers. Luxury home automation systems, on the other hand, have exclusive distribution channels and are tailor-made to the client's needs.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
North America Home Automation System Market, By Product
The entertainment and controls segment accounted for a significant share of the Europe home automation system market in 2024. Growth is supported by rising adoption of smart entertainment, intelligent HVAC control, and multi-room audio solutions across residential buildings. Strong integration of voice assistants, AI-based analytics, and interoperable platforms is enhancing system performance and ease of use. These technologies also enable better energy optimization, predictive maintenance, and compliance with Europe’s sustainability and energy-efficiency goals.
North America Home Automation System Market, By Protocol
In the Europe home automation system market, the wired segment holds a significant market share due to its strong reliability, consistent performance, and enhanced data security. Wired solutions are less vulnerable to interference, making them well-suited for core applications such as lighting, HVAC control, and building security. These systems are commonly adopted in new residential developments and premium housing projects, particularly in countries with strict building standards. Their long operational life and low maintenance needs further support sustained adoption across the region.
North America Home Automation System Market, By Installation Type
The new installation segment led the Europe home automation system market in 2024, driven by the growing construction of energy-efficient homes and smart residential complexes. Developers are increasingly embedding automation systems during the building phase to support energy management, climate control, and security. Early integration helps reduce installation complexity and future upgrade costs. As a result, new housing developments remain a key driver of market growth across Europe.
North America Home Automation System Market, By System Type
The behavioral segment held a significant share of the Europe home automation system market in 2024, supported by growing use of AI-based systems that allow residents to monitor and control lighting, temperature, and security. Consumers actively manage energy consumption to meet efficiency goals and reduce costs. Meanwhile, the proactive segment is gaining momentum, as intelligent platforms automatically adjust home systems based on usage patterns, weather conditions, and occupancy, supporting sustainability targets across Europe.
North America Home Automation System Market, By Residence Type
In the Europe home automation system market, multi-family residences account for the largest share due to the high density of apartment living across major cities. Residential buildings benefit from centralized wiring, shared communication networks, and building-level automation systems, which lower deployment and operating costs per household. Developers increasingly embed smart lighting, heating control, access systems, and energy management solutions during construction to meet efficiency and sustainability goals. Additionally, centralized control and monitoring enable more effective operation and maintenance, reinforcing the strong adoption of home automation in multi-dwelling residential buildings across Europe.
REGION
Italy is expected to be fastest-growing country across Europe home automation system market during the forecast period.
Italy is emerging as one of the fastest-growing markets in Europe for home automation systems due to a combination of regulatory support, housing trends, and consumer behavior. The country’s strong focus on energy efficiency and building renovation, supported by government incentives for smart and sustainable homes, is accelerating the adoption of automated lighting, HVAC, and energy management systems. In addition, retrofit demand in aging residential buildings is driving the uptake of wireless and easy-to-install home automation solutions. Rising awareness of home security, comfort, and remote monitoring, along with increasing smartphone and broadband penetration, is further supporting rapid market growth across urban and suburban areas.
EUROPE HOME AUTOMATION SYSTEM MARKET: COMPANY EVALUATION MATRIX
In the Europe home automation system market, Schneider Electric (Star) hold a leading position with a strong global presence, a comprehensive product portfolio, and proven expertise in integrated building automation, energy management, and smart electrical systems tailored for residential applications.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Johnson Controls (Ireland)
- Schneider Electric (France)
- Siemens (Germany)
- Resideo Technologies Inc. (US)
- Legrand (France)
- ASSA ABLOY (Sweden)
- Apple (US)
- ADT (US)
- Robert Bosch (Germany)
- ABB (Switzerland)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 14.17 BN |
| Market Size in 2030 (Value) | USD 18.23 BN |
| Growth Rate | 4.8% |
| Years Considered | 2021–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD BN), Volume (Million Units) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Country-level Scope | Europe: UK, Germany, France, Italy, Rest of Europe |
WHAT IS IN IT FOR YOU: EUROPE HOME AUTOMATION SYSTEM MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
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| Home Security Provider |
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| Energy Utility/Smart City Authority |
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| Technology Provider/IoT Integrator |
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RECENT DEVELOPMENTS
- November 2024 : Resideo launched the new Honeywell Home FocusPRO series of thermostats. The series includes non-programmable, programmable, and smart models with a focus on simple design, user-friendly interface, and energy efficiency.
- September 2024 : Schneider Electric added an AI-powered energy management feature into its Wiser Home app, designed to optimize energy consumption for homeowners.
- September 2024 : ABB launched ABB-free@home, a wireless home automation system designed to enhance residential spaces' comfort, security, and energy efficiency.
Table of Contents
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Methodology
The research study involved 4 major activities in estimating the size of the home automation system market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the supply chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information required for this study. The secondary sources include annual reports, press releases, investor presentations of companies, white papers, and articles from recognized authors. Secondary research has been mainly done to obtain key information about the market’s supply chain, the pool of key market players, market segmentation according to industry trends, regional outlook, and developments from both market and technology perspectives.
In the home automation system market report, the global market size has been estimated using both the top-down and bottom-up approaches, along with several other dependent submarkets. The major players in the market were identified using extensive secondary research, and their presence in the market was determined using secondary and primary research. All the percentage shares splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Primary Research
Extensive primary research has been conducted after understanding the home automation system market scenario through secondary research. Several primary interviews have been conducted with key opinion leaders from both demand- and supply-side vendors across 4 major regions— North America, Europe, Asia Pacific, and the Rest of the World. Approximately 25% of the primary interviews have been conducted with the demand-side vendors and 75% with the supply-side vendors. Primary data has been collected mainly through telephonic interviews, which consist of 80% of the total primary interviews; questionnaires and emails have also been used to collect the data.
After successful interaction with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings of our primary research. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the report. The breakdown of primary respondents is as follows:
Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches, along with data triangulation methods, have been used to estimate and validate the size of the home automation and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
- Identifying top-line investments and spending in the ecosystem and considering segment-level splits and major market developments
- Identifying different stakeholders in the home automation system market that influence the entire market, along with participants across the supply chain
- Analyzing major manufacturers and solution providers in the home automation system market and studying their solutions and service portfolios
- Analyzing trends related to the adoption of home automation solutions and services
- Tracking recent and upcoming market developments, including investments, R&D activities, solution launches, collaborations, acquisitions, and partnerships, as well as forecasting the market size based on these developments and other critical parameters
- Carrying out multiple discussions with key opinion leaders to identify the adoption trends of home automation systems
- Segmenting the overall market into various other market segments
- Validating the estimates at every level through discussions with key opinion leaders, such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts at MarketsandMarkets
Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market has been split into several segments and subsegments. To complete the entire market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from the demand and supply sides in the home automation system market.
Market Definition
Home Automation System is a network of hardware, communication, and electronic interface, which controls home devices so as to connect them through the internet. Each device comes with built-in sensors; and using Wi-Fi, Bluetooth or other communication protocols are linked to a central hub or controller to enable users to manage or automatically control multiple systems, appliances and services either via mobile app or through preset programming. Examples of common systems are lighting, heating, security, and entertainment system. Home automation provides increased comfort, improved energy utilization, safety and control a home environment. It enables a user to make repetitive tasks automatic, manage his/her home devices using his/her smartphone or verbally, and monitor home events live.
Key Stakeholders
- Raw Material and Manufacturing Equipment Suppliers
- Automation and Control Networking Technology Vendors
- Real Estate Builders
- System Integrators
- Homeowners
- Project Consultants
- Designers/Consultants (HVAC, Security, and Fire and Safety)
- Component Manufacturers (Sensors and Controls)
- Home Management Solutions Providers
- Smart Home-related Associations, Organizations, Forums, and Alliances
- Government Bodies Associated with Green Buildings
Report Objectives
- To define, describe, segment, and forecast the home automation system market, by product, system type, protocol, residence type, and installation type, in terms of value
- To forecast the market for products, in terms of volume
- To describe the protocols and technologies used for home automation
- To describe and forecast the market for various segments, with respect to four main regions: North America, Europe, Asia Pacific, RoW along with their respective countries, in terms of value
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the home automation system market
- To provide a detailed overview of the home automation market’s supply chain, along with the ecosystem, technology trends, use cases, regulatory environment, and Porter’s five forces analysis
- To analyze industry trends, pricing data, patents and innovations, and trade data (export and import data) related to the home automation
- To strategically analyze the micromarkets with respect to individual growth trends, prospects, and contributions to the total market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
- To analyze opportunities for stakeholders and provide a detailed competitive landscape of the market
- To analyze competitive developments, such as product launches/developments, collaborations, partnerships, acquisitions, and research & development (R&D) activities carried out by players in the home automation system market
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Growth opportunities and latent adjacency in Europe Home Automation System Market