GCC Smart Home Market Outlook to 2025
Smart Entertainment Systems and Smart Lighting Solutions to support Market Growth
April 2020
100
About the Report
About the Report
The publication titled “GCC Smart Home Market Outlook to 2025 - Smart Entertainment Systems and Smart Lighting Solutions to support Market Growth” undertakes analysis of GCC Smart Homes Industry, changing customer perception and preferences, possible expansion strategies, current technologies, brand comparisons, future outlook & trends expected to become a reality in near future. The IT sector as a whole has taken a major leap across the GCC. With Saudi Arabia and the UAE leading the charge, GCC is improving and accepting technology at a strong pace. Smart Homes within GCC households have a much larger scope for penetration but the receptions of such services has improved since 2017, when talks of creating Smart Cities came into play in the GCC. Saudization 2030 and Dubai 2020 expo are some major event and plans leading the charge for creating smart cities in the GCC. With 5G services also emerging, supportive technologies have become more potent and scope for Smart Homes in the GCC has become more potent.
The GCC Smart Home Market Overview
The GCC Smart Home market is in its nascent stage with fragmented competition and an import dominated setup. The market is supported by improving technological infrastructure, governments taking efforts to move away from oil based industries and taking efforts to create smart cities and a rising youth population. Recently the governments of UAE and Saudi Arabia have amended their ICT policies and created regulations for Smart Device manufacturers, to comply with quality and data security rules. Demand is focused towards wireless technology, as it is friendlier for smaller residential spaces. The number of apartments has been on the rise, for instance the number of apartments rose by 2.6% as compared to the number of villas (1.9%) in Saudi Arabia from 2017-2018
GCC Smart Homes: Target Addressable Market
The Smart Home adoption in the GCC is extremely low, with less than 10% using smart devices and smart solutions at home. Saudi Arabia and UAE form majority of the market, with other GCC countries slowly increasing the adoption towards Smart Home Devices. While Energy Savings is a primary factor motivating consumers to opt for Smart home devices, their extremely high cost acts as a deterrent in their adoption. Smart TV is the most commonly used Smart Devices in the GCC, but adoption towards other smart devices such as Smart Lighting Solutions, Smart Speaker and Switches are extremely low.
GCC Smart Homes: Market Segmentation
The Smart Home solutions have penetrated into Lighting Control, HVAC, Security & Access Control, Entertainment Control Systems, Smart Kitchens, Smart Fridges, Smart Security Cameras among others. Predominantly the market is dominated by HVAC Devices and Entertainment systems. Increasing working population and rising tide of streaming services has increased the preference and adoption towards smart entertainment systems. Nearly about 80% of the people own a smart TV at home. Out of all other countries, UAE indicated strong adoption towards technology and smart home solutions. Popularity of Wireless devices over wired devices is also increasing owing to convenience and limited spaces in apartments and homes. Future Growth is higher in Bahrain and Oman as compared to other countries in the GCC.
Customer Preference
Customer knowledge and acceptance regarding smart homes is improving, turn offs for smart homes devices include, data privacy issues, lack of knowledge regarding benefits of smart devices, higher costs of international branded smart devices, difficulty of installation and troubleshooting and others however, the need for energy savings, the convenience provided and the social status offered by Smart devices are positive factors which influence purchase decisions in the GCC market. Demand for Smart Lighting and HVAC solutions is higher as temperature regulations and indoor lighting is the key energy consumption areas in a house, apart from which demand for security services is growing a strong rate owning to the need for remote surveillance rising in the GCC countries.
Country Snapshot-United Arab Emirates Smart Home Market
The UAE Smart Home Market is expected to grow at a CAGR of more than 17% in the future. The market runs on a traditional model, where minor and DIY purchases are made online and major projects are accomplished through Integrators or Real Estate developers. Segments such as Smart Entertainment Systems and Smart Security Solutions are more preferred in the UAE. Differential pricing of Electricity is a major driving force towards Smart Energy Solutions. UAE will play host to multiple events to promote the adoption of smart devices, such as IOT expo 2020, Middle East Smart Lighting & Energy Summit and others. The rollout of 5G had begun 2019 onwards from companies such as du and Etisalat, making the supporting technology for smart devices more efficient and faster.
Country Snapshot-KSA Smart Home Market
Saudi Arabia Smart Home Market is expected to grow at the same rate as UAE. As the gaming and streaming trend increases across Saudi Arabia, demand for entertainment systems is expected to rise with customers relying on Local Integrators to offer an optimum brand combination. Under Saudi 2030 vision, the smart city project, NEOM, is intended to integrate data AI using smart devices into modern living. The $500.0 Bn development project will kick off in 2020. More and more smart city projects are expected to come up thereby driving the demand for Smart Home Solutions in the future. Currently Smart Home Integrators dominate the market in Saudi with majority coming from Retail sales.
GCC Smart Homes Market Competition
The overall market across the GCC is an import dominated market with Saudi Arabia and UAE having the majority share. The market is highly fragmented and local integrators play a major role in the market. The Market is dominated by Smart Home Manufacturers, which includes a number of international players and Smart Home Integrators which include domestic companies who offer setup and installation services. Major International players include Control4, Siemens, Johnson Controls, Honeywell, HDL, LG, HikVision and others. Major Integrators include DOTS Technology, Greentec Automation DMCC, Apex Smart Home Automation, Alayoubi Technologies and others. Productions Units are still scarce in the market but few global players have started plans to create production facilities in the GCC. The international companies enter into strategic partnerships with local integrators and distributors to strengthen their supply chain, in order to expand their reach and disrupt the market.
GCC Smart Homes Market Future
The future of the market is expected witness strong growth owing to factors like introduction of 5G in almost each GCC country and each government trying to adopt a smart cities concept, central to which are smart homes. Acceptance of smart devices is also expected to improve as devices become more DIY and easy to install and use. Customer knowledge is also increasing regarding smart homes and as the number of options increase, customers will have a larger selection of brands, qualities and features to choose from. Major Smart Home Device production sites are in countries like, China, Europe, USA and South Korea, countries severely impacted by the virus, thus slowing the production process. Large parts of the supply chains are slowed down due to lock downs and social distancing in said countries, the Supply in the GCC import driven market will be affected.
Key Segments Covered
GCC Smart Home Market
By Country
UAE
Saudi Arabia
Qatar
Kuwait
Oman
Bahrain
By Application
Lighting
HVAC
Security & Access Control
Entertainment System
Others
By Connection
Wired Connection
Wireless Connection
UAE Smart Home Market
By Application
Lighting
HVAC
Security & Access Control
Entertainment System
Others
By Cities
Dubai
Abu Dhabi
Sharjah
Rest of UAE
By Property
Villas
Townhouses
Apartments
By Type of Sales
Retail Sales
Project Sales
By End Users
Real Estate Developers
Integrator Firms
Individuals
Others
Saudi Arabia Smart Home Market
By Application
Lighting
HVAC
Security & Access Control
Entertainment System
Others
By Cities
Riyadh
Jeddah
Dammam
Rest of Saudi Arabia
By Property
Villas
Townhouses
Apartments
By Type of Sales
Retail Sales
Project Sales
By End Users
Real Estate Developers
Integrator Firms
Individuals
Others
Companies Covered
Control4
Legrand
Johnson Controls
Schneider Electric
Emerson
LG
Siemens
Greentec Automation
Shifra Smart Home
Apex Smart Home
Alayoubi Technologies
Elettrico
Dots Tech Systems
Fast Net
Exotic International
Key Target Audience
Smart Home Integrators
Real Estate Developers
Smart Home Manufacturers
Home Automation Companies
Venture Capitalists and PE Firms
Time Period Captured in the Report:-
Historical Period – 2014-2019
Forecast Period – 2020-2024F
Key Topics Covered in the Report
Industry Pain Points
Potential Addressable Market
GCC Smart Home Market Size and Segmentation
UAE Smart Home Market Snapshot
Saudi Arabia Smart Home Market Snapshot
Trends and Developments in GCC market
Supply Infrastructure – Ecosystem for Types of Types of Smart Devices
Demand Infrastructure – Ecosystem for Types of End Users
Market Operation, Challenges and Modes Of Entry
Technology Stack: Layers of Technology Used In Smart Devices
Competitive Landscape:
Company Profiles
Future Landscape of the GCC Smart Home Market
Analyst Recommendation: Future Opportunities
Products
Products
Key Segments Covered
GCC Smart Home Market
By Country
UAE
Saudi Arabia
Qatar
Kuwait
Oman
Bahrain
By Application
Lighting
HVAC
Security & Access Control
Entertainment System
Others
By Connection
Wired Connection
Wireless Connection
UAE Smart Home Market
By Application
Lighting
HVAC
Security & Access Control
Entertainment System
Others
By Cities
Dubai
Abu Dhabi
Sharjah
Rest of UAE
By Property
Villas
Townhouses
Apartments
By Type of Sales
Retail Sales
Project Sales
By End Users
Real Estate Developers
Integrator Firms
Individuals
Others
Saudi Arabia Smart Home Market
By Application
Lighting
HVAC
Security & Access Control
Entertainment System
Others
By Cities
Riyadh
Jeddah
Dammam
Rest of Saudi Arabia
By Property
Villas
Townhouses
Apartments
By Type of Sales
Retail Sales
Project Sales
By End Users
Real Estate Developers
Integrator Firms
Individuals
Others
Key Target Audience
Smart Home Integrators
Real Estate Developers
Smart Home Manufacturers
Home Automation Companies
Venture Capitalists and PE Firms
Time Period Captured in the Report:-
Historical Period – 2014-2019
Forecast Period – 2020-2024F
Companies
Companies Covered
Control4
Legrand
Johnson Controls
Schneider Electric
Emerson
LG
Siemens
Greentec Automation
Shifra Smart Home
Apex Smart Home
Alayoubi Technologies
Elettrico
Dots Tech Systems
Fast Net
Exotic International
Table of Contents
Table of Contents
1. GCC Smart Homes Market Structure 2019 – Executive Summary
2. GCC Smart Homes Market Structure 2025 (F) – Executive Summary
3. Present Day Pain Points and Target Addressable Market
Present Day Pain Points of Homeowners and Working Professionals
Target Addressable Market
TAM: Focus Area and Customer Demographics
4. Supply and Demand Analysis
Supply Infrastructure – Ecosystem for Types of Smart Devices
Demand Infrastructure – Ecosystem for Types of End Users
Market Ecosystem
Timeline of Major Players in the Market
Trends and Developments in GCC market
Consumer Preference: Smart TV’s Dominate Customer Preference
Consumer Preference: Target Audience Survey Analysis
GCC Smart Homes Market Size: Demand perspective
GCC Smart Homes Market Segmentation
GCC Smart Homes by Channel of Purchase
Willingness to pay for Smart Home Devices
5. Market Operation, Challenges and Modes of Entry
Operating Model Analysis – Smart Home Products Import Procedure
Import Metrics and Role of Key Players (Smart Home Operating Model)
Challenges faced in the GCC Countries
Real Estate Construction Model
GCC Smart Home Market: Probable Cost to Retrofit a Smart Home- Villa
GCC Smart Home Market: Probable Cost to Retrofit Smart Home- Apartments
Market Entry Options: Organically Through Innovation
Market Entry Through Technology: Kotler’s Levels of Products
Technology Stack: Layers of Technology Used In Smart Devices
Technology Landscape: Types of Communication Protocols Available for Smart Devices
How to Enter the Market: Manufacturing
Market Entry Options: Inorganically Through Partnerships and M&A
6. Country Snapshot (Including Market Size, Market Segmentation By Application, By Type Of Cities, By Type Of Security Devices, By Type Of Entertainment Devices, By Type Of Communication Technology, By Type Of Property, By Type Of Sales Channels And Type Of End Users)
Country Snapshot: United Arab Emirates
Country Snapshot UAE: Market Segmentation
Country Snapshot: Saudi Arabia
Country Snapshot: Saudi Arabia Segmentation
Country Snapshot: Remaining GCC
7. Competitive Landscape
Chinese Products: Cost Comparison (including Brand, Product Category, Product, Price)
Competitive Scenario Review (including Major Strengths, Market Share by revenue and by Percentage)
Business Landscape of Major Smart Home Players (including Business Model , Smart Product Categories, Management)
Operational and Financial Landscape of Major Smart Home Players (including Domains, Revenue in Middle East, R&D Expenses, Vintage, Presence, Warranty, Importing Country)
Business Landscape of Major Smart Home Integrators (Regional Presence, Categories, Offerings, Brand Partnerships, Major Projects)
Specification Comparison by Type of Category: Smart Lighting Controls (Including Backlight, Possible Button Configurations, Customizable Face Plate, DIY/Installation Required, Maximum Load, Communication Methods, Power, Consumption and Price (USD))
Specification Comparison By Type of Category: Smart Thermostats (Including Power Supply, Communication Technology, Operable Temperature Range, Number of Sensors, Display type and Price (USD))
Specification Comparison By Type of Category: Smart Security Cameras (Including Mega Pixel and range, Autofocus, Night vision, Storage, Net Connectivity, Security Protocols and Price (USD))
8. Company Profiles (including Product Offerings, Regional Presence, Mobile App Stats, Patents, Recent Developments, Business Strategy, Strengths, Global Revenue and Middle East/Africa Revenue)
Control4
Legrand
Johnson Controls
Schneider Electric
Emerson
LG
Siemens
9. Future Landscape of the GCC Smart Home Market
Factors Affecting the Future (5G to lead the Future, Cities Of The Future and the Effect of Covid- 19)
GCC Smart Homes Future Market Size: Demand perspective (Including Future Market Size, Future Market Segmentation By Application)
GCC Smart Homes Market Future Segmentation
Future Country Snapshot: United Arab Emirates
Future Country Snapshot UAE: Market Segmentation (Including Future Market Segmentation By Application, Future By Type Of Cities, Future By Type Of Security Devices, Future By Type Of Entertainment Devices, Future By Type Of Communication Technology, Future By Type Of Property, Future By Type Of Sales Channels And Future Type Of End Users)
Future Country Snapshot: Saudi Arabia
Future Country Snapshot Saudi Arabia: Market Segmentation (Including Future Market Segmentation By Application, Future By Type Of Cities, Future By Type Of Security Devices, Future By Type Of Entertainment Devices, Future By Type Of Communication Technology, Future By Type Of Property, Future By Type Of Sales Channels And Future Type Of End Users)
Future Country Profile: Remaining GCC
10. Analyst Recommendation: Future Opportunities
Upcoming Technologies: Smart Watch as Central Hub
Mesh Networks: Smart device communication without an ISP
Single Communication Protocols: KNX Leads The Way
Possible Technology Improvements: Cluster based Smart Home Security
Micro Controllers: DIY Home Automation
Possible Business Model: Integrator Aggregator Model
Other Analyst Recommendations
Marketing Strategies: Promotion of Smart Homes
11. Research Methodology
Market Definitions
Abbreviations Used
Market Sizing Approach- GCC Smart Homes Market
Consolidated Research Approach
Primary Research Approach
Research Limitations & Future Conclusion
Market Correlation Matrix
Multi factor linear model via SPSS statistical tool
12. Survey Results
13. Disclaimer
14. Contact Us
List of Figure
Figure 1- Target Addressable Market in terms of Households in the GCC
Figure 2- Smart Home Penetration
Figure 3- Key Focus Area: Addressable Expat Population
Figure 4- Customer Survey Responses- Preference of Smart Home Devices
Figure 5- GCC Smart Home Market Size in USD Million and Growth Rate in Percentage, 2014-2019
Figure 6- GCC Smart Devices Product Import and Money Flow Process
Figure 7- GCC Smart Home Market: Real Estate Construction Model
Figure 8- Kotler’s Levels of Products: Smart Security Camera
Figure 9- Technology Stack: Layers of Technology Used In Smart Devices
Figure 10- UAE Smart Home Market Size 2014-2019 in $ Mn and Growth Rate in Percentage (%)
Figure 11- Saudi Arabia Smart Home Market Size 2014-2019 in USD Million and Growth Rate in Percentage (%)
Figure 12- Rest of GCC Smart Homes Market Growth by Application (CAGR: 2014-2019) in Percentage (%)
Figure 13- GCC Smart Homes Market Major Players Market Share in Percentage (%)
Figure 14- GCC Smart Home Market Size 2020 (F)- 2025(F) in USD Million and Growth Rate in Percentage (%)
Figure 15- GCC Smart Homes Market Size by Type of Connection, 2019-2025 (F) USD Million
Figure 16- Growth by Country for GCC Smart Homes Market, 2019-2025 (F) USD Million
Figure 17- UAE Smart Home Market Size 2020(F)-2025(F) in $ Mn and Growth Rate in Percentage (%)
Figure 18- Saudi Arabia Smart Home Market Size 2019-2025(F) ($ Mn) & Growth Rate in Percentage (%)
Figure 19- Rest of GCC Smart Homes Market Growth by Application (CAGR: 2019-2025(F)) in Percentage (%)
Figure 20- Smart Watch as a control device operating model
Figure 21- Arduino Sample Schematic
List of Table
Table 1- Probable model of Energy Savings from Smart Devices in Dubai
Table 2- Major Product Categories Available In The Smart Home Market
Table 3- GCC Smart Home Market Segmentation by Application (Lighting Control, HVAC Control, Security & Access Controls, Entertainment Control Systems and Others) in USD million, and CAGR 2014-2019,
Table 4- Role of Key Players in the Smart Home Operating Model
Table 5- Key Import Metrics in the GCC Operating Model
Table 6- GCC Smart Home Market: Probable Cost to Retrofit a Smart Home- Villa
Table 7- GCC Smart Home Market: Probable Cost to Retrofit a Smart Home- Apartments
Table 8- Technology Landscape: Types of Communication Protocols Available for Smart Devices
Table 9- Major Industrial Parks in the GCC with their Advantages
Table 10- Major Upcoming Start-ups to Consider for M&A in the Middle East
Table 11- UAE Smart Home Market Segmentation by Application (Lighting Control, HVAC Control, Security & Access Controls, Entertainment Control Systems and Others) in USD million, and CAGR 2014-2019,
Table 12- Saudi Arabia Smart Home Market Segmentation by Application (Lighting Control, HVAC Control, Security & Access Controls, Entertainment Control Systems and Others) in USD million, and CAGR 2014-2019,
Table 13- Rest of GCC (Qatar, Kuwait, Oman and Bahrain) Smart Home Market Size in USD million 2014-2019 and CAGR 2014-2019
Table 14- Rest of GCC (Qatar, Kuwait, Oman and Bahrain) Smart Home Market Segmentation by Application (Lighting Control, HVAC Control, Security & Access Controls, Entertainment Control Systems and Others) in USD million 2014 and 2019
Table 15- Chinese Vs Non Chinese Product and Cost Comparison for Smart Home Devices
Table 16- GCC Smart Homes Market Major Players Market Share in Percentage (%)
Table 17- GCC Smart Homes Market Strengths of Major Players
Table 18- Business Landscape of Major Smart Home Players (including Business Model, Smart Product Categories, Management, Geographical Presence (Globally)
Table 19- Operational and Financial Landscape of Major Smart Home Players (including Domains, Revenue in Middle East, RnD Expenses, Vintage, Employees Global Presence, Warranty, and Importing Country)
Table 20- Business Landscape of Major Smart Home Integrators (Including Regional, Presence, Categories, Offerings, Brand Partnerships and Major Projects)
Table 21- Specification Comparison By Type of Category: Smart Lighting Controls
(Including Backlight Possible Button Configurations Customizable Face Plate DIY/Installation Required Maximum Load Communication Methods Power Consumption Price)
Table 22- Specification Comparison By Type of Category: Smart Thermostats (including Power Supply, Communication Technology, Operable Temperature Range, Number of Sensors, Display type and Price)
Table 23- Comparison by Type of Category: Smart Security Cameras (including Mega Pixel and range, Autofocus, Night vision, Storage, Net Connectivity, Security Protocols and Price)
Table 24- Control4 Key Financials
Table 25- Legrand Key Financials
Table 26- Johnson Controls Key Financials
Table 27- Schneider Electric Key Financials
Table 28- Emerson Key Financials
Table 29- LG Key Financials
Table 30- Siemens Key Financials
Table 31- GCC Smart Homes Market Size by Application, 2020 (F)- 2025(F) USD Mn
Table 32- UAE Market Size by Application in USD Mn and CAGR in Percentage(%), 2014-2019
Table 33- Saudi Arabia Smart Homes Market Size by Application, 2019-2025 (F) USD Mn
Table 34- Rest of GCC Smart Homes Market Size by Country, 2020(F)-2025(F) USD Mn
Table 35- Rest of GCC Smart Homes Market Segmentation by Application, 2014; 2019 USD Mn
Table 36- Cross Comparison between specifications of popular mesh networks, 2019
Research Methodology including Definitions, Abbreviations Used, Methodology and Limitations
Appendix including Survey Results
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