Middle East & Africa Smart Home Market Outlook, 2028

The Middle East & Africa region is experiencing significant urbanization, with more people moving to cities. Urban dwellers are more likely to invest in smart home technology due to the convenience and security it offers. As cities in the region continue to expand, the smart home market is expected to grow. As economies in the Middle East & Africa region continue to develop, more people are able to afford smart home devices. While income disparities still exist, the overall rising income levels in the region are driving demand for modern and convenient living. The Middle East region's demand for smart homes is being driven by the increased use of smartphones, tablets, smart wearable’s, and other devices. These devices allow users to monitor and control the operation of home appliances using various wireless protocols, including Wi-Fi, 3G, Bluetooth, and others, as well as sensors that enable automated appliance functioning. The Middle Eastern smart home market is anticipated to grow during the forecast period as a result of rising adoption of smart home products that provide real-time security, energy-efficient solutions, devices, etc. The region's smart home market is expected to benefit from increased awareness and acceptance of advanced security solutions throughout the region. More and more technology innovations are enabling users to operate their smart home's door locks, lights, thermostats, and other features from anywhere in the globe. Examples of these innovations include gesture control, motion-sensing air conditioners, and energy-saving lighting control systems. Therefore, with on-going technology breakthroughs supporting it, the Middle East smart home market is anticipated to grow rapidly in the upcoming years. The solutions and systems used to turn a house into a smart home are very expensive in the first stages of installation because they provide connectivity between various devices, including communication hubs, medical appliances, gaming consoles, infotainment devices, and home energy monitors. Custom systems also cost more since they need to be installed by a consultant, which adds to their expense. Building new and smart buildings around the Middle East is becoming more popular as people become more aware of the region's highly modern and safe infrastructure. In order to provide customers with automated and safe solutions, it is anticipated that the adoption of smart home systems and solutions will rise in the upcoming years. According to the research report, “Middle East & Africa Smart Home Market Outlook, 2028” published by Bonafide Research, the market is anticipated to cross around USD 8.33 Billion market size by 2028. In urban areas with limited space, there's a growing trend toward smart apartment complexes and multi-unit housing with centralized smart infrastructure. These developments often incorporate smart building management systems, offering residents integrated services and a connected living experience. With an aging population, there's an increased demand for smart home solutions that allow seniors to age in place comfortably and safely. This includes remote healthcare monitoring, fall detection, and home automation systems designed with seniors' needs in mind. The Middle East & Africa region is home to many luxury real estate developments, and smart home technology is a key selling point for high-end properties. These luxury smart homes often include advanced automation, entertainment, and security systems with a focus on opulence and convenience. The pandemic has also influenced the use of smart technology in educational settings. Smart homes are increasingly being equipped with advanced educational tools and environments, including interactive displays, virtual classrooms, and IoT-based educational resources. The trend of growing your own food is gaining traction in the region. Smart home technology is being used to create controlled indoor gardens and hydroponic systems, allowing residents to grow fresh produce year-round. These systems often include automated lighting and climate control to optimize plant growth. High-end smart homes in the Middle East & Africa region are incorporating wellness retreat areas with features like smart saunas, relaxation zones, and mood-enhancing lighting systems for an all-encompassing wellness experience at home. Smart furniture and interior design elements are gaining popularity. This includes items like smart beds with adjustable firmness, integrated charging ports, and built-in speakers, as well as smart mirrors that can display health metrics and clothing recommendations.

The Middle East and Africa Smart Home Market, based on country, is divided into the United Arab Emirates, Saudi Arabia, and South Africa. The United Arab Emirates (UAE) is one of the leading countries in the Middle East and Africa (Middle East & Africa) when it comes to the adoption of smart home technology. The United Arab Emirates government has been actively promoting smart technology adoption as part of its broader "Smart Dubai" initiative. This initiative aims to transform Dubai into one of the smartest and most connected cities in the world. The Dubai government has launched the "10X" initiative, aiming to place the city ten years ahead of the rest of the world in various sectors, including technology. This initiative encourages the development and adoption of advanced technologies, making Dubai an ideal location for smart home innovation. It includes various projects that encourage the use of smart technology in homes and businesses, driving innovation and growth in the smart home market. The United Arab Emirates has experienced significant urbanization and a growing population. Urban dwellers are more likely to adopt smart home technology due to the convenience and modern lifestyle it offers, including smart security, lighting, and climate control. The United Arab Emirates has a relatively high per capita income, and its population has a strong purchasing power. This allows residents to invest in smart home technology, which can often come at a premium. The luxury real estate market in the United Arab Emirates often includes smart home features as a selling point. The United Arab Emirates has invested heavily in technological infrastructure, including high-speed internet and 5G connectivity. This infrastructure is essential for smart home devices to function efficiently and plays a crucial role in driving adoption. The United Arab Emirates is a major tourist destination, and smart home technology is also being incorporated into the hospitality sector. Luxury hotels and resorts in the country are using smart home features to enhance the guest experience. The Smart Speakers segment is expected to have the highest CAGR in the Middle East and Africa (MEA) Smart Home Market during the forecast. Smart speakers offer a convenient and intuitive way to control various smart devices in the home. Users can simply use voice commands to adjust lighting, control thermostats, play music, and even order groceries. This ease of use is a significant driver of adoption. Smart speakers are often integrated with popular virtual assistants like Amazon Alexa, Google Assistant, and Apple Siri. These virtual assistants continue to gain popularity and offer an array of skills and capabilities, making smart speakers a central hub for controlling the entire smart home ecosystem. Smart speakers are not just for voice commands; they also serve as music playback devices, information sources, and even entertainment centers. This multi-functionality makes them appealing to consumers as they can fulfill multiple roles in the household. The MEA region is witnessing increased demand for home automation and the creation of truly smart homes. Smart speakers are at the forefront of this trend, acting as the central control point for various devices, including lighting, security, and appliances. Many users in the MEA region use smart speakers for content streaming, including music, podcasts, and audiobooks. The integration with streaming services like Spotify and Apple Music contributes to their popularity. In addition, based on application, the market is divided into new construction and retrofit. The new construction segment is expected to hold the largest share. Furthermore, based on the sale channel, the market is segmented into direct and indirect. The Middle East & Africa region is experiencing rapid urbanization and significant infrastructure development, with the construction of new residential and commercial buildings. Many of these new construction projects are being designed and built with smart home features integrated from the ground up. Several countries in the Middle East & Africa region, such as the United Arab Emirates and Saudi Arabia, are actively pursuing smart city initiatives. These initiatives include the development of connected, technologically advanced urban environments. Smart home technology is an integral component of these smart city plans, and it is often incorporated into new construction projects to support these broader visions. New construction projects benefit from economies of scale in terms of purchasing and installation. This often leads to cost savings compared to retrofitting existing buildings with smart home technology. New construction projects often aim to future-proof buildings by incorporating adaptable and upgradeable smart home systems. This allows for easy integration of new technologies and services as they become available. In addition, manufacturers and retailers have made smart home products more accessible to consumers in the region through various distribution channels, including physical stores and e-commerce platforms. This increased availability has encouraged consumers to make direct purchases. Many consumers are concerned about the security of their smart home devices. Buying directly from reputable sources can offer a sense of security, as manufacturers and authorized dealers are more likely to ensure that their devices have robust security features and regular updates.

In terms of protocols, the market is segmented into wireless protocols, wired protocols, and hybrid protocols. Furthermore, based on software and services, the market is divided into behavioural and proactive segments, with the proactive segment expected to experience the highest CAGR during the forecast period of 2023–2028. One of the significant advantages of using hybrid protocols in smart home systems is their ability to enhance compatibility and interoperability. Different smart devices often use different communication protocols (e.g., Wi-Fi, Zigbee, Z-Wave, and Bluetooth). A hybrid protocol approach allows smart home systems to communicate with and control a wide range of devices, regardless of the protocol they use. This compatibility is essential for consumers who want to build comprehensive, multi-vendor smart home ecosystems. The smart home market in the Middle East and Africa includes a wide variety of devices, from smart lighting and thermostats to security systems and appliances. A hybrid protocol approach can accommodate this diversity by ensuring that various types of devices can work together seamlessly within a single smart home ecosystem. Different protocols have different ranges and coverage capabilities. For example, Wi-Fi provides robust coverage indoors, while Zigbee and Z-Wave are known for their low-power and long-range capabilities. A hybrid approach allows users to combine these strengths, ensuring that all areas of a home or property are covered effectively. Furthermore, proactive smart home applications are centred on automation and predictive capabilities. As awareness of these features grows among consumers in the Middle East and Africa, there's an increasing demand for systems that can automate routine tasks, such as adjusting lighting and temperature, even before users request them. This level of automation can significantly enhance convenience and energy efficiency. Proactive smart home applications are centred on automation and predictive capabilities. As awareness of these features grows among consumers in the Middle East and Africa, there's an increasing demand for systems that can automate routine tasks, such as adjusting lighting and temperature, even before users request them. This level of automation can significantly enhance convenience and energy efficiency. Proactive smart home systems can provide support for ageing in place, which is a significant consideration in regions with ageing populations. These systems can help older individuals remain in their homes by providing health monitoring, safety features, and assistance with daily living. Companies Covered in this report: Honeywell International, Inc, Siemens AG, Schneider Electric SE, ABB, Samsung Electronics Co., Ltd., Johnson Controls International PLC, Assa Abloy AB, General Electric Company, LG Corporation, Robert Bosch GmbH, Signify N.V, Samsung Electronics Co. Ltd. Considered in this report • Geography: Middle East & Africa • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Middle East & Africa Smart Home market Outlook with its value and forecast along with its segments • Country-wise Smart Home market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Country covered in the report: • United Arab Emirates • Saudi Arabia • South Africa By Product • Security and Access Control • Lighting Control • Entertainment System • HVAC Control • Smart Speakers • Smart Home Appliances • Smart Kitchen Appliances • Smart Home Healthcare Systems • Smart Furniture • Other Controls (Smart Meter, Smart Plug, Smart Smoke detector, Smart hub) By Protocols • Wireless Protocols • Wired Protocols • Hybrid Protocols By Application • New Construction • Retrofit By Sales Channel • Direct • Indirect By Software & Services • Behavioural • Proactive The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Smart Home industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.