The smart home devices market - Italy (2023)

1.2 The global market

the size of the global smart home market has been estimated at $**.** billion in **** and is expected to grow at a rate(***) of ** percent from **** to ****, reaching $*** billion.

The increasing integration of Artificial Intelligence(***) into smart home products is expected to increase demand for products.

In addition, one element that is driving demand is the high penetration rate of smartphones and the Internet globally.

The increasing use of voice assistants such as Siri, Google Assistant, and Alexa is also driving the home device market, as is the use of next-generation technologies such asIoT and Blockchain.

The Asia-Pacific region will most likely have the highest CAGR, about ** percent over the forecast period. This growth can be attributed to improved living standards, increased disposable income among individuals in the region and the penetration of new technologies.

As forEurope, it is expected to grow at a steady rate from **** to ****, thanks to the presence of key players such as ABB, Legrand, Robert Bosch and others. In addition, rising living standards and GDP, as well as government initiatives favorable to new technologies will drive the European market.

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Global Smart Home Market World, ****-****, in billions of dollars grandviewresearch.com

1.3 The Italian market

in **** , the smart home market continues to grow in Italy, with +**% compared to **** and reaching a value of *** million euros. This is a higher growth rate than in other European countries such as Spain (***), while Germany is declining.

Italian Smart Home Market Italy, ****-****, millions of euros finance.lastampa.it

In contrast, as far as per capita spending is concerned, it is ** euros/inhabitant in Italy. This figure is quite distant from those recorded in the U.S. and other European countries, the only European country with similar spending being France.

Per capita spending on smart home systems/devices Europe and the U.S., ****, in euros finance.lastampa.it

It is the solutions "closest" to energy saving, such as boilers, thermostats, thermostatic valves, and connected air conditioners, that drive sales, with a **% share (***), favored in particular by the sale of numerous connected boilers, often combined with smart thermostats, which benefit from incentives such as Superbonus and Ecobonus.

This is followed by security solutions, a *** million euro segment(***). A market driven by hardware solutions such as cameras, door/window sensors and connected locks, although the share of services is also starting to grow .

In third place we find smart appliances, with *** million ...

1.4 Import-Export

Regarding the foreign marketing of smart home devices, since this is a market that cannot be clearly circumscribed and has different technological solutions, HS code **** is taken as a reference : electrical, acoustic or visual signaling devices (***). Looking at the graph, it can be seen that from **** onward, the export/import ratio has gradually decreased to below unity. In **** it appears that imports exceed exports of these devices.

Import-export of devices related to smart home systems Italy, ****-****, millions of dollars comtradeplus.un.org

Regarding Italy's exports, the main destination countries are France and the US, which together account for ** percent of exports, followed by the UK, Germany, and finally Spain

Main export destinations of devices related to smart home systems Italy, ****, % comtradeplus.un.org

imports from abroad of products related to the same HS **** code predominantly come from China (***), followed by the Netherlands and Spain with similar percentages. Immediately following are France and Germany. Main countries of origin for the import of devices related to smart home systems Italy, ****, % comtradeplus.un.org

1.5 The impact of the Russian-Ukrainian conflict

Despite the growth of the Italian smart home market, it is believed that the expansion could have been higher (***)

New disruptions in global component shortages caused by the war in Ukraine and the resurgence of Covid-** in China have disrupted the smart speaker and smart display markets, according to the latest research by Strategy Analytics. In the first quarter of **** , total shipments of smart speakers and displays are estimated to have declined a total of * percent year-on-year to **.* million units, the second year-on-year decline in the market's history. Russia's war against Ukraine and the continuing and growing shortages of semiconductors and other components have become crippling concerns for many suppliers, particularly the Chinese trio Alibaba, Baidu and Xiaomi.

In detail, smart display sales in the first quarter of **** declined * percent year-on-year by *.* million units as smart display vendors Alibaba, Baidu, and Xiaomi are beginning to face a number of challenges unique to them that will completely alter the trajectories of their respective smart speaker and smart display businesses through ****. Sales of basic smart speakers (***) are down about * percent from the same period last year, with the U.S. market beginning to show signs of market saturation.

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to outline the situation ...

2.1 Demand in Italy

The rising cost of energy has prompted Italians to pay more attention to energy conservation: ** percent are careful to save money within their homes. And using smart home devices could help reduce annual energy consumption by as much as ** percent for heating, ** percent for the electrical component. However, among consumers the link between energy saving and smart home is not yet widely known. In fact, most Italians, to save energy adopt virtuous behaviors or purchase devices or appliances that consume less. Few still take advantage of smart objects for real-time consumption monitoring(***), of which ** percent use heating and cooling scenarios, * percent use storage systems and self-generation from renewable sources, and * percent activate services to optimize consumption.

Energy saving solutions Italy, ****, % finance.lastampa.it

Most Italian consumers with connected objects in the home frequently use smart features(***).

Consumer behaviors and attitudes Italy, ****, % observatories.net

2.2 Demand drivers

The deployment of smart home type devices and systems is driven by a number of drivers enabled by the inherent characteristics of these technologies, these can be summarized in the table below.

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2.3 The geographical distribution of demand

Regarding the geographical distribution of smart home demand, reference is made to data on Google Trends regarding queries related to the topic, particularly shopping, broken down by different regions, over the past ** months.

The values are calculated on a scale of * to ***, where *** indicates the location with the highest search frequency as a proportion of total searches in that location, and a value of ** indicates a location with half as many searches. The value *, on the other hand, indicates a locality for which insufficient data were collected.

The data collected shows that the region where the most searches were conducted regarding smart home device purchases is Trentino-Alto Adige. This is followed by Friuli-Venezia Giulia, Umbria and Marche among the regions with the most searches conducted.

Regions not shown in the table have values of *, as sufficient data were not collected.

2.4 New trends in demand

Connectivity and interoperability

Considering consumers' expectations for the future, most would like full integration and communication between installed smart devices, capable of activating and setting scenarios autonomously. According to Angela Tumino, Director of the Internet of Things Observatory, Italian consumers are increasingly ready for the smart home, given the growth in the use of connected devices. (***)

Integrated services

Consumers prefer smart home systems that can integrate various services and features. The trend toward service-oriented models and pay-per-use options indicates that consumers are looking for flexible and comprehensive solutions that can be tailored to their individual needs.(***)

Increased security

Video surveillance is becoming a major trend, with consumers looking for advanced security features in their smart home devices. The emerging trend toward devices that support content sharing and analytics indicates consumer interest not only in monitoring but also in actively managing their home security.(***)

Remote management

The ability to control and manage home devices via smart apps or speakers is highly sought after. This convenience is a significant factor in the growing interest in smart home appliances. (***)

3.1 The market structure

Theanalysis of the market structure related to Smart Home is carried out on the basis of data belonging to the category related to ATECO code ****: Installation of electrical installations in buildings or other works under construction(***). Clearly, this is a very broad and general category, but nevertheless it can give information related to enterprises operating in the Smart Home sector, which is a difficult copart to target. Specifically, three different magnitudes are considered: number of active enterprises, number of employees, and legal form of enterprises.

With regard to the number of firms involved in electrical installation, no particularly noticeable changes are observed. However, a growing trend emerges from ****, which is even more pronounced in ****, with an increase of *.* percent, reaching a number of **,*** enterprises in the sector.

Number of enterprises ATECO code ** ** Italy, ****-****, in number istat.it

regarding the legal form, the majority of enterprises(***) assume the configuration ofsole proprietor/liberal professional/self-employed. The seocnd most prominent form is the limited liability company. Legal form enterprises ATECO code ** ** Italy, ****, % istat.it

as for the number of employees in the sector, the trend follows the trend in the number of enterprises, with a more noticeable increase in ****. From this information, it ...

3.2 The value chain

3.3 Distribution

**** marks a strong growth of all sales channels, especially the traditional supply chain (***). Sales by utilities, insurance companies, and telcos remain limited, although for the former it has been a year of strong relaunch of smart home offerings, leveraging the theme of energy savings.

Sales channels for smart home devices by market share Italy, ****, % observatories.net

3.4 The main actors

The following are the main companies active in the smart home sector in Italy, in descending order of turnover.

Bticino s.p.a: BTicino SpA is an Italian engineering company founded in ****, specializing in low-voltage electrical equipment for living, working and manufacturing environments. Their solutions cover power distribution, communication, and control of lighting, audio, climate and security . Originally known as AL Bassani, it began by producing clothing accessories and mechanical components, then specialized in household electrical components after World War II, acquiring the name BTicino after joining the French Legrand group in ****. At presentmeno offers a range of smart home solutions including automation of lights and shutters, temperature control, and consumption visualization.

Finder s.p.a: is an Italian company specializing in the production of electronic and electromechanical components and devices. Its European plants manufacture more than **,*** different products for the industrial and residential sectors, capable of controlling automations, power, time, temperature, water level and lighting. More than ** years of experience and a vision that has always been future-oriented to guarantee its customers solutions for every need.

Faac s.p.a: an Italian multinational company founded in **** in Zola Predosa. it specializes in automations for gates and barriers, automatic entrances and ...

4.1 Supply analysis

The expression Smart Home or "smart home" refers to the ability to manage automatically or remotely, systems and devices within a home in order to save energy, simplify home life, and/or ensure the safety of the people inside.

From a technological point of view, the Smart Home represents the evolution of home automation. This development has been made possible by the evolution of theInternet of Things and connected objects.

Smart home solutions include various products and technologies that help improve comfort in homes, safeguard the environment through energy conservation, and ensure people's safety.

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4.2 The prices

Analysis of prices for smart home devices shows that there are significant variations over the course of a year. According to data collected by idealo, average annual maximum savings can vary widely depending on the device, for example:

Smart TVs: up to €*** in savings Smart refrigerators: up to €***€ in savings Smart radiators: up to ***€ in savings Smart home hubs: up to ***€ in savings Smart washing machines: up to **€ in savings Smart soundbars: over **€ in savings Smart speakers: up to **€ savings

Overall, the total average annual cost for all smart home devices decreased by *.*% year on year, from ****€ to ****€. These data suggest that consumers can find opportunities for savings by purchasing smart home devices, especially if they can take advantage of deals at the most advantageous times of the year.

4.3 New supply trends

The smart home market is subject to continuous innovations related to security, energy saving, smart appliances, and so on. It is an industry that, especially in recent years, has seen considerable development, attracting more and more consumers. The most important market trends of the current year are proposed below. (***)

Control and security over the home

One of the most cutting-edge aspects, as far as smart homes are concerned, is precisely security modes and systems. In fact, experts are constantly looking for digital systems capable of protecting and ensuring maximum security in the face of possible hacker attacks. By the year ****, it is envisioned that these same digital systems will be able to manage lighting, alarms, cameras and acoustic systems at the same time, so as to make environments as safe as possible. In addition, after the pandemic experience, as far as commercial and public areas are concerned, the inclusion of alarm capable of performing body temperature recognition and detection is envisaged.

Home appliances and smart appliances

Home appliances and appliances for the home and, more importantly, for daily living, represent one of the most sought-after and in vogue sectors in Smart Home market sales. In the new year, these innovative home ...

5.1 The legislation

At the European level, home automation is governed byArticle * ofDirective (***) ****/*** on "technical building systems, electric mobility and the indicator of building intelligence readiness" and two regulations concerning the voluntary certification system of building intelligence readiness and the technical modalities to implement it.

Regulation No. ****/****/EU of October **, **** introduces this system, which is not mandatory for member states, and is intended to emphasize the additional benefits from advanced smart technologies not only in terms of energy savings but also for the accessibility and home comfort of building users, making an appropriate distinction between intelligence readiness as measured by the certification system and the energy performance of buildings as measured by the APE.

Regulation ****/****/EU, Oct. **, ****, also specifies the means by which certified technicians must carry out these certificates of building intelligence readiness.

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In addition, there is another provision related to the topic: The EU's European Data Protection Regulation ***/****(***), which came into force on May **, **** but is fully applicable as of May **, ****, is the reference legislation to which all organizations will necessarily have to comply and which also has a major impact in the vast landscape of theInternet of Things and the Smart Home.

In the era of the connected home, the ...

5.2 The incentives

Home automation bonus ****

Until December **, ****, households have the opportunity to benefit from the home automation bonus. This offers tax deductions for building efficiency, which can cover up to ** percent of expenses incurred for the purchase of smart home appliances and systems. This measure is part of theEcobonus benefits.

To qualify for the **** home automation bonus, it is necessary to purchase and install home automation devices aimed at saving energy. The subsidy can be used for the installation of an internet-connected control unit that can interact with appliances such as lights, refrigerators, light bulbs, washing machines, dishwashers, dryers, and solar panels. The control unit must facilitate the interoperability of appliances and constantly monitor their activities.

The **** home automation bonus is capped at **,*** euros and offers a** percent rebate on the expenses incurred. it is possible to install the necessary equipment and deduct the installation costs, including those of professional services. The deduction is disbursed as an Irpef credit over ** years.

Payments must be made by bank or postal transfer. And the necessary documentation must be provided to the Internal Revenue Service to obtain the tax break. it is important to note that the bonus does not cover the purchase of devices such ...

6.1 Segmentation

• Bticino s.p.a
• Finder s.p.a
• Faac s.p.a
• Came Italia s.r.l
• Ave s.p.a