Report Overview

Increasing house ownership among millennials, surging demand for home automation systems, high adoption of IoT for smart homes, and growing focus on safety and security are projected to drive the expansion of Saudi Arabia Home Automation Market at a double-digit CAGR during forecast period 2022 and 2028.

Saudi Arabia Home Automation Market - Industry Trends & Forecast Report, 2028

Saudi Arabia Home Automation Market size is expected to expand at a significant CAGR of 15.6% during the forecast period between 2022 and 2028. Major growth factors for Saudi Arabia home automation market include increasing consumer requirement for convenience and a customized service, rising safety and security awareness, and adoption of cloud-based technology. Recent advancements that directly influence Saudi Arabia home automation market include surging demand for Internet of Things (IoT) in home automation systems, evolution of video-enabled drones, and continuous advancements in security technology products, such as smart cameras. In addition, smart home technology is also known as home automation, as it provides users with comfort, simplicity, security, and energy efficiency through the control of smart devices, which is typically accomplished using a smart home app on their smartphone or similar connected device. Hence, all these above factors are expected to boost the Saudi Arabia home automation market during the period in analysis.

Saudi Arabia Home Automation Market – Overview

Home automation, also known as smart home, is a system that allows users to operate devices, such as alarm systems, electrical outlets, lights, and fans, using a smartphone. The focus of home automation system is on home security, safety, and surveillance, which includes smart locks for doors and windows fire alarms, surveillance equipment, and other sensors.

Saudi Arabia Home Automation Market

Growth Drivers

Increasing ownership among millennials

In Saudi Arabia, the millennials are the largest cohort of first-time homebuyers. They are also more likely than any other generation to own multiple homes. The Saudi Arabia housing market is currently under-supplied, with the number of new housing units not keeping pace with the country’s population growth. This has led to strong demand for homes, particularly among millennials. As more millennials enter the housing market, they are increasingly adopting luxury home automation solutions including artificial intelligence (AI) gadgets, such as Google Home, Alexa, and Siri, and smart lighting to make their homes more comfortable and convenient. Furthermore, the use of these devices reduces energy usage, making them more cost-effective. As a result, the growing demand for energy-efficient gadgets is also expected to drive demand for home automation market in Saudi Arabia.

  Increasing use of home automation systems among the elderly population   

The adoption of home automation systems is predicted to rise as the population ages. It is because these systems can bring numerous benefits to the senior population, such as better safety, independence, and quality of life. Furthermore, the integration of home automation systems with healthcare equipment, such as monitoring and diagnostic tools, simplifies caregiving for the elderly and unwell. Smart technology allows for hands-free control while also reducing the use of small cell phone screens. As a result, home automation gadgets controlled by AI-voice assistants are gaining popularity among the elderly, which is expected to expand the home automation market in Saudi Arabia. 

Restraints

High initial investments

Consumers are increasingly becoming aware of the benefits of cutting-edge technologies, such as machine learning, AI, and IoT, that improve the efficiency and simplicity of home automation systems. However, they are skeptical of investment in products and appliances because the returns might take a year or more. As a result, demand for these gadgets is low, particularly in low- to middle-income economies. Because of its expensive price, the demand for home automation is anticipated to be restricted among consumers with lower disposable incomes.

Impact of COVID–19 on Saudi Arabia Home Automation Market

COVID-19 pandemic has a detrimental impact on Saudi Arabia home automation market because of temporary closure of manufacturing plants, limited production unit and limited presence of staff. During the first quarter of 2020, the home automation market has witnessed a drastic fall in their production along with supply disruptions. Furthermore, pandemic also had an impact on consumer shopping behavior and habits. Despite spending a significant amount of time at home, consumers are more concerned with purchasing necessities than IoT devices. The declining enthusiasm in purchasing consumer IoT devices was anticipated to stifle market growth during the COVID-19 pandemic. However, the lockdown norms boosted the home automation product demand due to stay-at-home restrictions consumers’ preferred home energy-saving smart devices to monitor energy consumption and reduce their utility bills. In addition, increase in usage of smart TV and streaming sticks with voice commands have further boosted the home automation market.

  Saudi Arabia Home Automation Market

Segmental Coverage

Saudi Arabia Home Automation Market - By Component  

Based on component, Saudi Arabia home automation market is bifurcated into product and services. The product segment is further divided into security & safety, HVAC, wellness monitoring, smart appliances, smart entertainment, and smart lighting. Similarly, the services segment is subdivided into consulting, installation or implementation, support & maintenance. The product segment is predicted to lead the market and to grow at the fastest CAGR due to increased focus on developing and producing smart home gadgets. Security and safety are predicted to hold the highest market share due to monitoring solutions. Smart cameras, doorbells, gas detectors, and theft alarm are projected to drive the growth of the security and safety systems segment.

Saudi Arabia Home Automation Market - By Technology

On basis of technology, Saudi Arabia home automation market is divided into Wired and Wireless. The wireless segment holds a higher market share in the market due to its customization capabilities and can work on multiple devices at same time. The smart property systems, such as Google Home Hub or Apple Homekit work on wireless networks.

Saudi Arabia Home Automation Market – By Application

On basis of application, Saudi Arabia home automation market is categorized into Lighting, Safety & Security, HVAC, and Entertainment. The lighting segment holds the highest share in the market during the forecast period due to sustainability and eco-friendly features including adjusting brightness based on daylight availability to save energy. In addition, the smart city technology is predicted to include dynamic lighting that turns off in the absence of a person or movement of any vehicle.

Competitive Landscape

Saudi Arabia Home Automation Market is fiercely competitive. Prominent players in the market include UpLogica’s, Fastnet IoT, Mayar Technologies, Automation United, Schneider Electric Saudi Arabia, Atlanta Network, Arabian homes (AHC), Smart Homes, Mixwell, Automated Buildings, Saudi Controls Limited, Arenco Co., and Legrand KSA. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, market initiatives, mergers and acquisitions, and other collaborative activities.

Recent Developments

• In March 2017 – Philips Lighting Saudi Arabia signed a strategic distribution deal for its LED (light-emitting diode) and home consumer offerings with Ahmed Abdulwahed Trading Company.

Scope of the Report

By Component

• Product

• Services

By Technology

• Wired

• Wireless

By Application

• Lighting

• Safety & Security

• HVAC

• Entertainment