Many industry insiders have long felt that China, as a country, offers enormous potential for the smart home industry and apparently that potential in now being realized. The smart home market in China is now expected to be close to $37 billion by the end of the year 2025, according to a recent report by ResearchAndMarkets.com.
There are many factors driving growth in smart home market in the country and among the biggest are the high internet penetration rate, growth in the awareness of fitness and healthy lifestyles owning to the high disposable income in the Chinese middle-class population; supportive government policy for IoT devices, great importance of home monitoring from remote locations; growth in the demand for energy-saving and low carbon emission solutions due to climate change; rapid proliferation of smartphones and smart gadgets; existence of market players focusing on expanding their smart home product portfolios; and widespread concern about safety, security, and convenience.
A smart home is defined in China as a dwelling where appliances and devices are controlled via a smartphone application or web portal as user interface devices connected through the internet. Smart home systems include lighting control systems, security systems, entertainment systems (audio and video), home appliances, and others; and smart home devices, including speakers, in particular, are some of the most substantial segments of the smart home market in the country.
Supportive Government Policies
The Chinese government has taken proactive steps in making the policies for smart homes, smart cities and the internet of things (IoT) that stimulates the China smart homes market. Projects for smart cities are not only an opportunity for domestic companies but also for MNC companies. Smart home is sub-part of IoT devices, means Chinese government policies will continue to drive the smart home market in China.