Mi d d le East
Smart Homes Market
Fo r e c as t & O p p o r t u ni ties , 2 0 2 2
A TECHSCI RESEARCH
EXCLUSIVE WHITEPAPER FOR
TABLE OF CONTENTS
1.
Executive Summary
1
2.
Global Smart Homes Market Overview
3
3.
Middle East Smart Homes Market Outlook
5
• UAE Smart Homes Market Outlook
12
• Saudi Arabia Smart Homes Market Outlook
15
• Qatar Smart Homes Market Outlook
18
• Kuwait Smart Homes Market Outlook
21
• Rest of Middle East Smart Homes Market Outlook
24
9.
Market Dynamics
27
10.
Market Trends & Developments
30
11.
Competitive Benchmarking
32
12.
Strategic Recommendations
33
13.
List of Figures
35
14.
List of Tables
36
15.
About Us & Disclaimer
37
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
EXECUTIVE SUMMARY
• Globally, Middle East is one of the regions which has been hit hard by terrorism and increasing
migration issues. However, the region is the home to some of the richest countries, in terms of
per capita income, such as Qatar, UAE, Kuwait, etc., across the globe. The region is set to host
major international events like World Expo 2020, FIFA World Cup 2022, etc., in the coming years,
which is expected to positively impact the economy of Middle Eastern countries during forecast
period.
• Middle East smart homes market is expected to register healthy growth rate in the coming years
on account of favorable government initiatives towards energy efficiency and building smart
cities. Moreover, high per capita income and growing preferences for luxurious homes coupled
with increasing Internet of Things (IoT) market is expected to positively influence the region’s
smart homes market. The market of smart homes in the Middle East includes lighting controls,
HVAC controls, security & access control, entertainment controls, etc.
• Due to growing security concerns, the demand for security solutions is increasing in the Middle
East. Moreover, with growing population, the demand for energy efficiency measures as well as
residential units is increasing, which in turn is aiding the region’s smart homes industry.
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
2
GLOBAL SMART
HOMES MARKET
OVERVIEW
• A smart home refers to a residence equipped with computing and information technology devices,
which anticipates and responds to the needs of the owner in an efficient and effective manner. In a
smart home, the owner can easily monitor and control a wide range of applications such as lighting
control, access control, fire detection, leak detection, energy efficiency, etc. from anywhere via his/her
smartphones or internet. Smart homes also use key cards or fingerprint identification in place of
conventional locks, making it harder for someone to break-in.
• Increasing awareness of energy saving among customers, surging demand for real time home security
coupled with growing technological advancements are anticipated to boost the global smart homes
market during 2017 – 2022. In addition, backed by expanding Internet of Things (IoT) market, booming
M2M communication market and thriving touch free intuitive gesture control market, the global smart
homes market is expected to register a healthy growth rate over the next five years. Moreover,
increasing demand for energy efficient systems and solutions coupled with growing adoption of smart
devices are anticipated to boost the global smart homes market during 2017 – 2022.
• In 2015, there were more than 7 million cases of stolen motor vehicles across the world. In addition to
vehicle thefts, with increasing burglary cases, consumers are increasingly inclining towards smart
homes, which include advanced security systems with cameras, motion sensors and a link to the local
police station or a private security company. Smart homes also use key cards or fingerprint
identification in place of conventional locks, making it harder for someone to break in. However, high
initial installation cost, IT security issues and lack of standardization are some of the major factors
restraining demand for smart home solutions across the world.
• In 2016, North America dominated the global smart homes market, and the region is expected to
maintain its dominance over the next five years as well. In North America, the United States was the
largest smart homes market in 2016 on account of booming M2M communication market and
increasing smartphone users, which crossed 203.75 million in 2016. According to the US Federal
Bureau of Investigation report, around 8,277,829 property crime offenses were registered in the United
States in 2014. With increasing rate of property crime offenses, demand for smart homes in the
country is anticipated to increase at a robust pace over the next five years.
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
4
MIDDLE EAST
SMART HOMES
MARKET OUTLOOK
Figure 1: Middle East Smart Homes Market Size, By Value, 2012-2022F (USD Million)
2000.00
CAGR 2012-2016
25.38%
1864.60
CAGR 2017E-2022F
28.30%
1441.30
1500.00
1118.69
871.90
1000.00
500.00
171.29
213.39
266.97
335.44
2012
2013
2014
2015
423.24
536.29
682.38
0.00
2016
2017E
2018F
2019F
2020F
2021F
2022F
• Middle East smart homes market is expected to grow at a CAGR of 28.30%, in value terms, during
2017 – 2022, on account of higher GDP per capita of the countries like Qatar, the United Arab Emirates,
Kuwait, etc. coupled with increasing penetration of Internet and Internet of Things.
• Growing construction of luxurious villas and societies and increasing consumer awareness is expected to
aid the region’s smart homes market during 2017 – 2022. In addition, declining costs and new product
launches coupled with the implementation of favorable government policies for energy savings is expected
to aid the region’s smart homes market during 2017-2022.
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
6
Figure 2: Middle East Smart Homes Market Share, By Application, By Value, 2012–2022F
120.00%
30.43%
30.28%
30.13%
29.97%
29.82%
29.67%
29.52%
29.37%
29.22%
29.07%
28.92%
25.92%
25.75%
25.59%
25.42%
25.25%
25.09%
24.93%
24.77%
24.61%
24.45%
24.29%
16.44%
16.58%
16.72%
16.86%
17.00%
17.14%
17.28%
17.42%
17.56%
17.69%
17.83%
11.65%
11.70%
11.82%
11.94%
12.06%
12.17%
12.29%
12.40%
12.52%
12.64%
12.75%
15.56%
15.69%
15.75%
15.81%
15.87%
15.93%
15.98%
16.04%
16.09%
16.15%
16.20%
2012
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
2022F
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
Others*
Security & Access control
Lighting Control
Entertainment Control Systems
HVAC Control Systems
Table 1: Middle East Smart Homes Market Size, By Application, By Value, 2012–2016 (USD Million)
Application
2012
2013
2014
2015
2016
CAGR
(2012-2016)
Lighting Control
52.13
64.61
80.43
100.54
126.21
24.74%
HVAC Control Systems
44.40
54.95
68.31
85.26
106.87
24.56%
Security & Access Controls
28.16
35.38
44.63
56.55
71.95
26.43%
Entertainment Control Systems
19.95
24.96
31.55
40.04
51.03
26.46%
Others*
26.65
33.48
42.05
53.05
67.19
26.01%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
7
Table 2: Middle East Smart Homes Market Size, By Application, By Value, 2017E–2022F (USD Million)
2022F
CAGR
(2017E-2022F)
Application
2017E
2018F
2019F
2020F
2021F
Lighting Control
159.11
201.43
256.07
326.86
418.96
539.20
27.65%
HVAC Control Systems
134.56
170.12
215.98
275.33
352.43
452.96
27.48%
Security & Access controls
91.91
117.89
151.85
196.39
255.04
332.55
29.33%
Entertainment Control
Systems
65.28
83.85
108.15
140.05
182.11
237.75
29.50%
Others*
85.43
109.08
139.85
180.05
232.76
302.15
28.74%
• Lighting Controls: Favorable government initiatives coupled with changing preferences towards luxurious facilities is
boosting the demand for lighting controls in the Middle East. Furthermore, lighting controls also help in reduction of
electricity consumption as sensors adjust the level of light in accordance with the natural light.
• Security & Access Control Systems: Since security is considered to be an integral part of an infrastructure, deployment
of various security & access control systems such as wireless locks, IP-enabled devices, iris detection systems, etc. has
increased across the Middle East region. Increasing technological advancements are enabling users to monitor day -today activities through smartphones, tablets and other Bluetooth enabled devices from anywhere and anytime.
• Heating, Ventilation and Air Conditioning (HVAC) Control Systems: Backed by growing global warming concerns and
other environmental issues, the governments of Middle Eastern countries are introducing various regulations and
policies for deploying HVAC systems, as they are energy efficient and environmental friendly.
• Entertainment Control Systems: Entertainment systems are slowly becoming an integral part of households in the
Middle East. With increasing millennial population, these systems are gaining popularity. Entertainment control
systems integrate multiple entertainment systems, and are used to regulate & control the entertainment systems, with
improved convenience.
• Others: Others include Energy Management Systems, Home Healthcare, Smart Kitchen, etc. Middle East energy
management systems market is growing at a healthy pace as they are used to monitor and manage energy
consumption. Home healthcare is also gaining momentum with the users checking their health status at home itself .
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
8
Figure 3: Middle East Smart Homes Market Share, By Technology, By Value, 2012–2022F
120.00%
95.29% 95.17% 95.05% 94.94% 94.82% 94.70% 94.58% 94.46% 94.35% 94.23% 94.11%
100.00%
80.00%
60.00%
40.00%
20.00%
4.71%
4.83%
4.95%
5.06%
5.18%
5.30%
5.42%
5.54%
5.65%
5.77%
5.89%
2012
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
2022F
0.00%
Cellular Network Technologies
Wireless Communication
• Wireless communication technology dominated the Middle East smart homes market with a revenue
share of 94.82% in 2016 on back of growth in wireless communication advancements to support system
integration, increasing wireless devices market and growing adoption of low power and cost effective
hardware.
• Continuous launch of various wireless technology-based devices, which include wireless air conditioner,
wireless on/off controller, etc., for integrating new and innovative technologies to the smart homes, is
expected to boost the market of wireless communication technology in the Middle East during forecast
period.
• Decline in the usage of traditional phone lines in Middle East has led to an increase in deployment of
cellular network technologies across various smart home ecosystems for maintaining strong connection
between the devices. These network technologies are being used across various security applications for
offering high voice support, strong coverage and appropriate data speeds to the users
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
9
Table 3: Middle East Smart Homes Market Size, By Technology, By Value, 2012–2016 (USD Million)
By Technology
2012
2013
2014
2015
2016
CAGR
(2012-2016)
Wireless
Communication
163.22
203.08
253.77
318.45
401.31
25.22%
Cellular Network
Technologies
8.07
10.30
13.20
16.99
21.93
28.41%
Table 4: Middle East Smart Homes Market Size, By Technology, By Value, 2017E–2022F (USD Million)
By Technology
2017E
2018F
2019F
2020F
2021F
2022F
CAGR
(2017E-2022F)
Wireless Communication
507.86
645.41
823.63
1055.44
1358.10
1754.78
28.14%
Cellular Network
Technologies
28.42
36.97
48.27
63.25
83.19
109.83
31.04%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
10
Figure 4: Middle East Smart Homes Market Share, By Country, By Value, 2012–2022F
45.00%
40.00%
37.59%
37.73%
37.86%
38.00%
38.13%
38.27%
38.41%
38.54%
38.68%
38.81%
38.95%
34.26%
34.37%
34.47%
34.58%
34.68%
34.79%
34.89%
35.00%
35.10%
35.21%
35.31%
17.27%
17.51%
17.75%
17.98%
18.22%
18.26%
18.30%
18.34%
18.37%
18.41%
18.45%
7.61%
7.12%
6.63%
6.14%
5.65%
5.36%
5.07%
4.78%
4.49%
4.20%
3.91%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
3.27%
3.28%
3.29%
3.30%
3.31%
3.33%
3.34%
3.35%
3.36%
3.37%
3.38%
2012
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
2022F
Rest of Middle East & Africa
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
Kuwait
Qatar
Saudi Arabia
UAE
11
UAE
Figure 5: UAE’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
• United Arab Emirates dominated the
Middle East smart homes market with a
revenue share of 38.13% in 2016, due to
growing millennial population, high
standard of living and increasing
smartphone penetration.
• Government initiatives like Smart Dubai is
aiding the country’s smart homes
industry. In December 2015, for the
concept of smart health, Dubai Health
Authority
and
Dubai
Smart
Government showcased smart home
which includes network of smart sensors
to monitor the health of an individual.
UAE
2016
2022F
38.13%
38.95%
Table 5: UAE Smart Homes Market Size, By Value, 2012-2022F (USD Million)
CAGR
(20122016)
2012
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
2022F
CAGR
(2017E2022F)
25.83%
64.39
80.50
101.08
127.46
161.40
205.24
262.07
336.05
432.69
559.42
726.26
28.76%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
12
UAE
Figure 6: UAE Smart Homes Market Share, By Application, By Value, 2012–2022F
120.00%
27.57%
27.43%
27.29%
27.14%
27.00%
26.86%
26.72%
26.58%
26.43%
26.29%
26.15%
24.20%
24.07%
23.93%
23.80%
23.67%
23.54%
23.40%
23.27%
23.14%
23.00%
22.87%
18.19%
18.30%
18.42%
18.53%
18.65%
18.76%
18.87%
18.99%
19.10%
19.22%
19.33%
13.07%
13.16%
13.26%
13.35%
13.45%
13.54%
13.63%
13.73%
13.82%
13.92%
14.01%
16.97%
17.04%
17.10%
17.17%
17.24%
17.31%
17.37%
17.44%
17.51%
17.57%
17.64%
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2012
Others*
Security & Access control
Lighting Control
Entertainment Control Systems
HVAC Control Systems
Table 6: UAE Smart Homes Market Size, By Application, By Value, 2012–2016 (USD Million)
Application
2012
2013
2014
2015
2016
CAGR
(2012-2016)
Lighting Control
17.75
22.08
27.58
34.60
43.58
25.17%
HVAC Control Systems
15.58
19.37
24.19
30.34
38.20
25.13%
Security & Access controls
11.71
14.74
18.62
23.62
30.09
26.61%
Entertainment Control Systems
8.42
10.60
13.40
17.02
21.70
26.72%
Others*
10.93
13.72
17.29
21.89
27.82
26.32%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
13
UAE
Table 7: UAE Smart Homes Market Size, By Application, By Value, 2017E–2022F (USD Million)
2017E
2018F
2019F
2020F
2021F
Lighting Control
55.13
70.02
89.31
114.38
147.08
189.92
28.07%
HVAC Control Systems
48.30
61.33
78.19
100.11
128.68
166.10
28.02%
Security & Access controls
38.50
49.46
63.81
82.65
107.50
140.39
29.53%
Entertainment Control
Systems
27.79
35.73
46.13
59.81
77.85
101.75
29.64%
Others*
35.52
45.53
58.60
75.75
98.31
128.11
29.25%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
2022F
CAGR
(2017E-2022F)
Application
14
SAUDI
ARABIA
Figure 7: Saudi Arabia’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
•
With increasing popularity of
smartphones and their applications
coupled with the government’s
energy efficient policies are
boosting the market of smart
homes solutions in Saudi Arabia.
•
Companies are focusing on Middle
Eastern markets and continuously
trying to launch their products. For
instance, Cielo WiGle, a United
States-based smart home products
manufacturer, announced in 2016
that it has signed a channel partner
agreement
with
advanced
technology and services, a Saudi
Arabia-based IT services company,
to distribute the company's smart
home products in the country.
Saudi Arabia
2016
2022F
34.68%
35.31%
Table 8: Saudi Arabia Smart Homes Market Size, By Value, 2012-2022F (USD Million)
CAGR
(20122016)
2012
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
2022F
CAGR
(2017E2022F)
25.76%
58.68
73.33
92.03
115.98
146.78
186.55
238.08
305.12
392.66
507.41
658.39
28.69%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
15
SAUDI
ARABIA
Figure 8: Saudi Arabia Smart Homes Market Share, By Application, By Value, 2012–2022F
120.00%
31.29%
31.15%
31.00%
30.86%
30.72%
30.58%
30.43%
30.29%
30.15%
30.00%
29.86%
25.59%
25.42%
25.25%
25.09%
24.92%
24.75%
24.58%
24.41%
24.25%
24.08%
23.91%
16.38%
16.51%
16.65%
16.78%
16.91%
17.05%
17.18%
17.31%
17.44%
17.58%
17.71%
12.32%
12.42%
12.52%
12.63%
12.73%
12.83%
12.93%
13.03%
13.14%
13.24%
13.34%
14.42%
14.50%
14.57%
14.65%
14.72%
14.80%
14.88%
14.95%
15.03%
15.10%
15.18%
2013
2014
2015
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2012
Others*
HVAC Control Systems
2016
2017E
2018F
Entertainment Control Systems
2019F
2020F
2021F
Security & Access control
2022F
Lighting Control
Table 9: Saudi Arabia Smart Homes Market Size, By Application, By Value, 2012–2016 (USD Million)
Application
2012
2013
2014
2015
2016
CAGR
(2012-2016)
Lighting Control
18.36
22.84
28.53
35.79
45.09
25.18%
HVAC Control Systems
15.02
18.64
23.24
29.09
36.57
24.93%
Security & Access controls
9.61
12.11
15.32
19.46
24.82
26.77%
Entertainment Control Systems
7.23
9.11
11.53
14.64
18.68
26.79%
Others*
8.46
10.63
13.41
16.99
21.61
26.42%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
16
SAUDI
ARABIA
Table 10: Saudi Arabia Smart Homes Market Size, By Application, By Value, 2017E–2022F (USD Million)
2017E
2018F
2019F
2020F
2021F
Lighting Control
57.04
72.45
92.42
118.37
152.24
196.60
28.08%
HVAC Control Systems
46.17
58.53
74.49
95.20
122.17
157.42
27.80%
Security & Access controls
31.80
40.90
52.82
68.50
89.19
116.60
29.68%
Entertainment Control
Systems
23.93
30.79
39.77
51.58
67.17
87.83
29.70%
Others*
27.61
35.42
45.62
59.01
76.64
99.94
29.34%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
2022F
CAGR
(2017E-2022F)
Application
17
QATAR
Figure 9: Qatar’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
• Qatar held the third largest share in
the Middle East smart homes
market in 2016. High standard of
living and high concentration of the
country’s population in urban areas
are positively influencing Qatar
smart homes market.
• Due to recent ongoing problems
with 4 countries – Saudi Arabia, the
UAE, Egypt and Bahrain – the
country’s economy is expected to
slow down, thereby negatively
impacting the country’s smart
homes market.
Qatar
2016
2022F
11.90%
13.24%
Table 11: Qatar Smart Homes Market Size, By Value, 2012-2022F (USD Million)
CAGR
(20122016)
2012
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
2022F
CAGR
(2017E2022F)
27.07%
29.58
37.36
47.37
60.32
77.11
97.92
124.85
159.86
205.54
265.37
344.02
28.57%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
18
QATAR
Figure 10: Qatar Smart Homes Market Share, By Application, By Value, 2012–2022F
120.00%
32.66%
32.54%
32.42%
32.30%
32.18%
32.06%
31.94%
31.82%
31.70%
31.58%
31.46%
27.08%
26.97%
26.85%
26.74%
26.63%
26.52%
26.40%
26.29%
26.18%
26.06%
25.95%
14.14%
14.30%
14.45%
14.61%
14.77%
14.93%
15.08%
15.24%
15.40%
15.55%
15.71%
9.76%
9.49%
9.61%
9.74%
9.86%
9.99%
10.12%
10.24%
10.37%
10.49%
10.62%
16.36%
16.71%
16.66%
16.61%
16.56%
16.51%
16.46%
16.41%
16.36%
16.31%
16.26%
2014
2015
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2012
2013
Others*
HVAC Control Systems
2016
2017E
2018F
Entertainment Control Systems
2019F
2020F
2021F
Security & Access control
Lighting Control
Table 12: Qatar Smart Homes Market Size, By Application, By Value, 2012–2016 (USD Million)
Application
2012
2013
2014
2015
2016
CAGR
(2012-2016)
Lighting Control
9.66
12.16
15.36
19.48
24.82
26.60%
HVAC Control Systems
8.01
10.07
12.72
16.13
20.53
26.53%
Security & Access controls
4.18
5.34
6.85
8.81
11.39
28.45%
Entertainment Control Systems
2.89
3.54
4.55
5.87
7.61
27.40%
Others*
4.84
6.24
7.89
10.02
12.77
27.45%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
19
QATAR
Table 13: Qatar Smart Homes Market Size, By Application, By Value, 2017E–2022F (USD Million)
2017E
2018F
2019F
2020F
2021F
Lighting Control
31.39
39.88
50.87
65.16
83.80
108.23
28.09%
HVAC Control Systems
25.96
32.96
42.03
53.80
69.16
89.27
28.02%
Security & Access controls
14.61
18.83
24.36
31.65
41.27
54.05
29.90%
Entertainment Control
Systems
9.78
12.63
16.37
21.31
27.85
36.53
30.15%
Others*
16.17
20.55
26.23
33.63
43.28
55.94
28.18%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
2022F
CAGR
(2017E-2022F)
Application
20
KUWAIT
Figure 11: Kuwait’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
Kuwait smart homes industry is
projected to grow at a CAGR of
28.73%, in value terms, during
forecast period owing to high
GDP per capita income and
growing awareness about smart
homes solutions and energy
efficiency. Moreover, the growth
in Internet of Things and
government initiatives towards
smart city is expected to boost
the demand for smart home
solutions across Kuwait during
forecast period.
Kuwait
2016
2022F
3.31%
3.38%
Table 14: Kuwait Smart Homes Market Size, By Value, 2012-2022F (USD Million)
CAGR
(20122016)
2012
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
2022F
CAGR
(2017E2022F)
25.80%
5.60
7.00
8.79
11.08
14.03
17.83
22.76
29.18
37.57
48.56
63.02
28.73%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
21
KUWAIT
Figure 12: Kuwait Smart Homes Market Share, By Application, By Value, 2012–2022F
120.00%
33.28%
33.16%
33.04%
32.92%
32.80%
32.68%
32.55%
32.43%
32.31%
32.19%
32.07%
29.92%
29.79%
29.67%
29.54%
29.41%
29.29%
29.16%
29.03%
28.90%
28.78%
28.65%
16.57%
16.70%
16.83%
16.95%
17.08%
17.21%
17.34%
17.47%
17.59%
17.72%
17.85%
8.22%
8.29%
8.35%
8.42%
8.48%
8.55%
8.62%
8.68%
8.75%
8.81%
8.88%
12.01%
12.06%
12.12%
12.17%
12.23%
12.28%
12.33%
12.39%
12.44%
12.50%
12.55%
2012
Others*
2013
2014
2015
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
HVAC Control Systems
2016
2017E
2018F
Entertainment Control Systems
2019F
2020F
2021F
Security & Access control
Lighting Control
Table 15: Kuwait Smart Homes Market Size, By Application, By Value, 2012–2016 (USD Million)
Application
2012
2013
2014
2015
2016
CAGR
(2012-2016)
Lighting Control
1.86
2.32
2.90
3.65
4.60
25.34%
HVAC Control Systems
1.68
2.09
2.61
3.27
4.13
25.26%
Security & Access controls
0.93
1.17
1.48
1.88
2.40
26.76%
Entertainment Control Systems
0.46
0.58
0.73
0.93
1.19
26.79%
Others*
0.67
0.84
1.07
1.35
1.71
26.36%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
22
KUWAIT
Table 16: Kuwait Smart Homes Market Size, By Application, By Value, 2017E–2022F (USD Million)
2017E
2018F
2019F
2020F
2021F
Lighting Control
5.83
7.41
9.46
12.14
15.63
20.21
28.24%
HVAC Control Systems
5.22
6.64
8.47
10.86
13.97
18.06
28.16%
Security & Access controls
3.07
3.95
5.10
6.61
8.61
11.25
29.67%
Entertainment Control
Systems
1.52
1.96
2.53
3.29
4.28
5.60
29.70%
Others*
2.19
2.81
3.62
4.67
6.07
7.91
29.29%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
2022F
CAGR
(2017E-2022F)
Application
23
REST OF
MIDDLE
EAST
Figure 13: Rest of Middle East’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
Rest of Middle East includes
countries such as Jordan, Bahrain,
Oman, Iran, etc. Growing awareness
regarding smart homes is increasing
in these countries. In addition,
companies are slowly shifting their
focus on these Middle Easter
countries. The market of smart
homes in the rest of Middle East &
Africa is projected to grow at a CAGR
of 20.45%, in value terms, during
forecast period.
Rest of Middle East
2016
2022F
5.65%
3.91%
Table 17: Rest of Middle East Smart Homes Market Size, By Value, 2012-2022F (USD Million)
CAGR
(20122016)
2012
2013
2014
2015
2016
2017E
2018F
2019F
2020F
2021F
2022F
CAGR
(2017E2022F)
16.39%
13.03
15.19
17.70
20.60
23.92
28.75
34.61
41.69
50.24
60.54
72.91
20.45%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
24
REST OF
MIDDLE
EAST
Figure 14: Rest of Middle East Smart Homes Market Share, By Application, By Value, 2012–2022F
120.00%
34.43%
34.31%
34.19%
34.08%
33.96%
33.84%
33.72%
33.60%
33.49%
33.37%
33.25%
31.57%
31.45%
31.32%
31.20%
31.07%
30.95%
30.83%
30.70%
30.58%
30.45%
30.33%
13.23%
13.32%
13.40%
13.49%
13.57%
13.66%
13.74%
13.83%
13.91%
14.00%
14.08%
7.35%
7.44%
7.54%
7.63%
7.73%
7.82%
7.91%
8.01%
8.10%
8.20%
8.29%
13.42%
13.48%
13.55%
13.61%
13.67%
13.74%
13.80%
13.86%
13.92%
13.99%
14.05%
2013
2014
2015
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2012
Others*
HVAC Control Systems
2016
2017E
2018F
Entertainment Control Systems
2019F
2020F
2021F
Security & Access control
Lighting Control
Table 18: Rest of Middle East Smart Homes Market Size, By Application, By Value, 2012–2016 (USD Million)
Application
2012
2013
2014
2015
2016
CAGR
(2012-2016)
Lighting Control
4.49
5.21
6.05
7.02
8.12
15.99%
HVAC Control Systems
4.12
4.78
5.54
6.43
7.43
15.93%
Security & Access controls
1.72
2.02
2.37
2.78
3.25
17.13%
Entertainment Control Systems
0.96
1.13
1.33
1.57
1.85
17.85%
Others*
1.75
2.05
2.40
2.80
3.27
16.93%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
25
REST OF
MIDDLE
EAST
Table 19: Rest of Middle East Smart Homes Market Size, By Application, By Value, 2017E –2022F (USD Million)
2017E
2018F
2019F
2020F
2021F
Lighting Control
9.73
11.67
14.01
16.82
20.20
24.24
20.03%
HVAC Control Systems
8.90
10.67
12.80
15.36
18.44
22.11
19.97%
Security & Access controls
3.93
4.75
5.76
6.99
8.47
10.27
21.19%
Entertainment Control Systems
2.25
2.74
3.34
4.07
4.96
6.04
21.87%
Others*
3.95
4.77
5.78
6.99
8.47
10.24
21.00%
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
2022F
CAGR
(2017E-2022F)
Application
26
MARKET DYNAMICS
DRIVERS
Growing Awareness and Acceptance of Advanced Security Solutions
Growing awareness and acceptance of advanced security solutions across Middle Eastern
countries has resulted in an increase in the adoption of smart home products for offering
real time security, energy-efficient solutions, devices, etc., which, in turn, is expected to
positively impact the region’s smart homes market during forecast period.
Increasing Smart Devices Penetration
Increase in penetration of smartphones, smart wearables, tablets, etc. is propelling the demand
for smart homes across Middle East region, as these devices help the users to manage and track
the functioning of home appliances through various wireless protocols such as Wi-Fi, 3G,
Bluetooth, etc. and sensors for enabling automated functioning of appliances .
Technological Advancements
Increasing technological advancements, such as motion sensing air conditioners, gesture
control, energy saving lighting control solutions, etc. are helping the users to control door
locks & lights, adjust thermostats, etc. of their smart home from anywhere in the world.
Thus, backed by continuous technological advancements, the Middle East smart homes
market is expected to grow at a robust pace in the coming years.
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
28
CHALLENGES
High Initial Installation Cost
At the initial phase of installation, the cost of solutions and systems deployed for
converting a home into smart home is very high as these solutions offer connectivity
between different devices such as home energy monitors, infotainment gadgets, medical
appliances, gaming consoles, communication hubs, etc. In addition, custom systems
require a consultant to install them, which further increase the cost of these systems.
Compatibility Issues
For a smart home to function properly, connected devices should be compatible with
communication protocols for performing various functions. However, with increasing
introduction of new technologies, devices connected with immature technology are not
able to communicate with the those connected with new technology. Hence, the lack of
compatibility among these devices is posing a threat to the market of smart homes in
Middle Eastern countries.
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
29
MARKET
TRENDS & DEVELOPMENTS
MARKET TRENDS & DEVELOPMENTS
INCREASING CONSTRUCTION MARKET
Growing awareness regarding highly advanced and secure infrastructure in Middle East is
boosting the construction of new and smart buildings across the region. Therefore, the adoption
of smart home systems and solutions is expected to increase for offering automated and secure
solutions to the users in the coming years.
SURGING DEMAND FOR IOT SOLUTIONS
Backed by technological and infrastructural developments and growing usage of mobile devices
such as smartphones, tablets, laptops, etc., the connectivity between inhabitants of Middle
Eastern countries is increasing. To make the digital lifestyle a reality in the region, the demand for
IoT infrastructure and related solutions is increasing.
BOOMING SMART WEARABLES MARKET
In the Middle East, the deployment of smart wearable devices is increasing due to growing
investments in wearable technology by various organizations and surging demand for
smartwatches. Thus, growing usage of smart wearable devices is expected to aid Middle East
smart homes market during 2017 – 2022, as these devices are used for personalization of
ambient environment, remote monitoring of various devices and systems, etc.
GROWING NUMBER OF SMART CITIES
.
Number of smart cities in the region is increasing due favorable government initiatives and
several benefits offered by smart cities. For instance, in May 2017, Saudi Arabia declared to set
up 10 smart cities to fulfil the goal of National Transformation Program 2020. Thus, with growing
trend of smart cities, the region’s smart homes market is expected to propel.
INCREASING DEPLOYMENT OF DATA ANALYTICS
.
In smart homes, data analytics technology is used to maintain security and privacy with the help
of sensors and save electricity by deploying smart energy meter. Deployment of data analytics in
smart home applications analyses the user’s behavior and take required actions, thus simplifying
the user’s day-to-day life.
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
31
COMPETITIVE
BENCHMARKING
COMPETITIVE BENCHMARKING
Company
HVAC Controls
Electronic
Security &
Safety
Siemens LLC
√
√
√
√
Honeywell
International Middle
East
√
√
√
X
Lutron
X
X
√
X
Schneider Electric FZE
√
X
X
X
HDL
√
X
√
√
My Smart Home
√
√
√
√
Leviton
X
√
√
X
Shifra Smart Homes
√
√
√
√
Crestron Middle East FZ
LLC
√
X
√
√
ABB Automation LLC
√
X
X
X
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
Lighting Controls
Entertainment
Control
32
STRATEGIC
RECOMMENDATIONS
• Key Focus Area – Entertainment Control Systems
With increasing demand for smart consumer electronic products, companies in Middle East are integrating
advanced technologies such as Artificial Intelligence and IoT, to make entertainment systems easy to use
and smart. Moreover, companies and technology providers are converting entertainment into smart
entertainment. With increasing penetration of Smart TVs, intelligent lighting, Smart ACs, etc., the demand
for entertainment control systems is increasing at a robust pace in the Middle Eastern countries. Thus,
entertainment control system providers are recommended to focus on R&D to develop efficient and
engaging smart devices for improved user experience.
• Partnership with Residential Real Estate Developers
With growing population, the demand for household is increasing exponentially in the Middle East.
Moreover, with increasing spending power of consumers, the demand for smart homes is picking up pace,
which, in turn, is motivating the residential real estate developers to enter smart homes market. Thus,
companies specifically dealing in smart lightening systems and security & access control systems can
directly partner with real estate developers, and supply their products to support the upcoming demand.
Moreover, smart homes players are also recommended to customize their products according to the
builder’s requirement in order to increase their revenues.
• Focus on Data Analytics
Smart devices are becoming more smart and intelligent due to the implementation of data analytics. These
smart devices collect the user’s data on real time basis, which can be analyzed by applying various
algorithms to fetch out meaning results for the user. Data analytics is used across various industries, and
help companies and organizations to make better decisions. In addition, it provides various benefits to the
users such as breaking down the big picture into a small one for better understanding and helps in taking
critical decisions from the data findings. Data analytics is used in smart homes for maintaining security and
privacy with the help of the sensors data; in healthcare environment; in saving the energy by deploying the
smart energy meter as data from smart meter helps in minimizing waste; etc. Hence, companies are
recommended to integrate data analytics in their smart homes solutions.
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
34
LIST OF FIGURES
Figure 1:
Middle East Smart Homes Market Size, By Value, 2012-2022F (USD Million)
Figure 2:
Middle East Smart Homes Market Share, By Application, By Value, 2012–2022F
Figure 3:
Middle East Smart Homes Market Share, By Technology, By Value, 2012–2022F
Figure 4:
Middle East Smart Homes Market Share, By Country, By Value, 2012–2022F
Figure 5:
UAE’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
Figure 6:
UAE Smart Homes Market Share, By Application, By Value, 2012–2022F
Figure 7:
Saudi Arabia’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
Figure 8:
Saudi Arabia Smart Homes Market Share, By Application, By Value, 2012–2022F
Figure 9:
Qatar’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
Figure 10:
Qatar Smart Homes Market Share, By Application, By Value, 2012–2022F
Figure 11:
Kuwait’s Share in Middle East Smart Homes Market, By Value, 2016 & 2022F
Figure 12:
Kuwait Smart Homes Market Share, By Application, By Value, 2012–2022F
Figure 13:
Rest of Middle East’s Share in Middle East Smart Homes Market, By Value, 2016 &
2022F
Figure 14:
Rest of Middle East Smart Homes Market Share, By Application, By Value, 2012–2022F
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
35
LIST OF TABLES
Table 1:
Middle East Smart Homes Market Size, By Application, By Value, 2012–2016 (USD
Million)
Table 2:
Middle East Smart Homes Market Size, By Application, By Value, 2017E–2022F
(USD Million)
Table 3:
Middle East Smart Homes Market Size, By Technology, By Value, 2012–2016 (USD
Million)
Table 4:
Middle East Smart Homes Market Size, By Technology, By Value, 2017E–2022F
(USD Million)
Table 5:
UAE Smart Homes Market Size, By Value, 2012-2022F (USD Million)
Table 6:
UAE Smart Homes Market Size, By Application, By Value, 2012–2016 (USD Million)
Table 7:
UAE Smart Homes Market Size, By Application, By Value, 2017E–2022F (USD
Million)
Table 8:
Saudi Arabia Smart Homes Market Size, By Value, 2012-2022F (USD Million)
Table 9:
Saudi Arabia Smart Homes Market Size, By Application, By Value, 2012–2016 (USD
Million)
Table 10:
Saudi Arabia Smart Homes Market Size, By Application, By Value, 2017E–2022F
(USD Million)
Table 11:
Qatar Smart Homes Market Size, By Value, 2012-2022F (USD Million)
Table 12:
Qatar Smart Homes Market Size, By Application, By Value, 2012–2016 (USD
Million)
Table 13:
Qatar Smart Homes Market Size, By Application, By Value, 2017E–2022F (USD
Million)
Table 14:
Kuwait Smart Homes Market Size, By Value, 2012-2022F (USD Million)
Table 15:
Kuwait Smart Homes Market Size, By Application, By Value, 2012–2016 (USD
Million)
Table 16:
Kuwait Smart Homes Market Size, By Application, By Value, 2017E–2022F (USD
Million)
Table 17:
Rest of Middle East Smart Homes Market Size, By Value, 2012-2022F (USD Million)
Table 18:
Rest of Middle East Smart Homes Market Size, By Application, By Value, 2012–2016
(USD Million)
Table 19:
Rest of Middle East Smart Homes Market Size, By Application, By Value, 2017E–
2022F (USD Million)
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
36
WE ARE TECHSCI RESEARCH
A global market research and consulting company focused on providing research and consulting services
to its customers worldwide.
The company provides comprehensive syndicated research reports, custom research services and data
analytics for diverse industry verticals including Consumer Goods and Retail, Automotive, IT & Telecom,
Water & Water Recycling, Chemicals, and Energy & Power with offices in US, Canada, UK and India.
TechSci Research employs Industry Analysts and Consultants with vast industry experience to
meticulously assist and advise customers in meeting their research and consulting requirements.
www.techsciresearch.com
TechSci Research – As ia-Pacific
B-44, Sector -57, Noi da, National
Ca pi tal Region, UP, India
Tel : +91-120-4523900
E: s a les@techsciresearch.com
TechSci Research – Europe
54, Ol dbrook, Bretton,
Peterborough,
Uni ted Ki ngdom
E: s a les@techsciresearch.com
TechSci Research – North America
2950, Boundary Road, Burnaby,
Bri ti sh Columbia,
Ca na da
Tel : +1- 646- 360-1656
E: s a les@techsciresearch.com
ABOUT INTERSEC
Intersec is the world’s leading trade fair for security, safety, and fire protection, featuring more than 1,300
exhibitors from 54 countries, and attracting more 31,000 visitors from 128 countries. The 20th
anniversary edition will take place from 21-23 January 2018 at the Dubai International Convention and
Exhibition Centre, spanning seven show sections of Commercial Security, Fire & Rescue, Safety & Health,
Homeland Security & Policing, Perimeter & Physical Security, Cyber & Information Security, and Smart
Home & Building Automation.
Intersec 2018 is held under the patronage of His Highness Sheikh Mansoor bin Mohammed bin Rashid Al
Maktoum, and supported by the Dubai Police, Dubai Civil Defence, the Dubai Police Academy, and the
Dubai Municipality.
Mi ddl e East Smart Homes Ma rket, Forecast & Opportunities, 2022
37