GCC Smart Home Market to grow at 22.28% CAGR from 2022-2028 due to expanding middle-class, rising incomes, demand for digital experiences, and government initiatives promoting smart home tech
05 Jun, 2023

Renub Research has recently published a report named "GCC Smart Homes Market, Size, Forecast 2023-2028, Industry Trends, Growth, Share, Outlook, Impact of Inflation, Opportunity Company Analysis" providing a detailed industry analysis that consists of market share insights. Furthermore, the report studies competitors and regions and the recent GCC Smart Home Market growth. GCC Smart Home Market will value at around US$ 1.88 Billion in 2028. As the GCC nation embraces the digital era, commitment to sustainable development and technological advancement positions it as a frontrunner in transforming houses into intelligent, interconnected havens. The GCC, or Gulf Cooperation Council, is a political and economic association of six Middle Eastern nations: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. 

Formed in 1981, it aims to promote cooperation and integration among its members. GCC Smart Home business leaders in line with their global counterparts understand the immense potential of digitalization to enhance internal operations and decision-making. They perceive it as a catalyst for revenue growth, not only by digitizing existing products and services but also by creating innovative, digitally-enabled offerings. Moreover, they recognize digitalization as a foundation for adopting advanced technologies, enabling the development of entirely new business models that differentiate their offerings and captivate consumers.

The rapid urbanization in the Middle East, particularly in the Gulf Cooperation Council (GCC) region, has fuelled the demand for smart home solutions. With over 70% of the population living in urban areas and the GCC being one of the most urbanized regions globally, the focus on building smart cities has gained momentum. Vision 2030, centred on a vibrant society, a thriving economy, and an ambitious nation, has further accelerated the adoption of smart home technologies. The increasing popularity of smartphones and the government's energy-efficient policies has contributed to the growth of the smart home market in the GCC.

According to the World Bank, the combined GDP of the GCC countries was nearly US$ 2 trillion in 2022. If the GCC maintains its current trajectory, its combined GDP shall grow to approximately US$ 6 trillion by 2050. In addition, the region's increasing urbanization and development of smart cities have created a favourable environment for integrating smart home solutions. According to the Global Innovation Report, the Middle East has witnessed the fastest-growing urban population for the past 50 years, with 85% of the GCC population residing in cities today and an expected rise to 90% by 2050.

Companies' adoption of AI, IoT, and blockchain technologies meets the demand for digital experiences, driving growth in the GCC smart home market. Improved technology infrastructure and the implementation of 5G networks support data-intensive offerings. Homeowners seek convenient control over lighting, temperature, security, and entertainment systems. Smart home solutions align with sustainability goals. Government initiatives promote smart home technologies, creating a favourable business environment. The emphasis on home security increases the demand for surveillance cameras, smart locks, and alarm systems. These factors contribute to the growth of the GCC smart home market.

Report Details:

Smart appliances have a prominent share in the GCC smart home market due to the technologically savvy population

Smart appliances are internet-connected devices that offer convenience, energy efficiency, and security. They include thermostats, lighting systems, security systems, kitchen appliances, entertainment devices, washing machines, vacuum cleaners, water management systems, and health devices. Users can control these appliances remotely and track energy consumption. 

The market for smart appliances in the GCC is growing steadily due to replacement purchases and technological advancements. According to Bahrain Economic Development Board (EDB), the GCC region's high internet penetration rates, surpassing 90% in most states, present a digitally receptive audience, making digitally enhanced products and services, such as e-commerce and financial services, highly promising. These rates are comparable to those of technologically advanced countries like Japan, the US, and South Korea, significantly exceeding the global average internet penetration rate of approximately 57%.

Furthermore, the demand for convenience and connectivity, energy efficiency goals, technological advancements, government support, and the expanding middle-class population with rising disposable incomes are driving the growth of the GCC smart home appliances market.

Application–The GCC smart home Market breakup from 6 Viewpoints:

1.    Comfort and Lighting
2.    Control and Connectivity
3.    Energy management
4.    Home Entertainment
5.    Security
6.    Smart appliance

Embarking on a Paradigm Shift: Qatar dominance in the GCC Smart Home Market Fuelled by Economic Stability and Government Backing

Qatar is an associate of the Gulf Cooperation Council (GCC), a regional organization of six Arab states in the Arabian Gulf. With vast natural gas reserves, Qatar is one of the wealthiest countries globally and has a strong economy. According to Standard Chartered, Qatar's economy will grow 4 percent in 2023. The country boasts the lowest unemployment rate and GDP per capita income, resulting in increased disposable income and higher spending on major smart home appliances. Changing consumer buying patterns, including a preference for online channels, and present opportunities benefit the Qatar smart home market. Moreover, manufacturers are focusing on technological advancements and energy efficiency, driving the development of smart and eco-friendly appliances.

The Qatar government's initiative, known as TASMU, aims to obtain the goals of Qatar National Vision 2030 by implementing smart cities and promoting a smart lifestyle for citizens, residents, visitors, and companies. In addition, this initiative supports the sales of energy and water-efficient appliances with reduced emissions. So, Qatar's growth in the smart home market is due to factors such as high urbanization, investment in smart cities and infrastructure, a high standard of living, government support, and increasing awareness of the benefits of smart homes.

Country–The GCC Smart HomeMarket breakup from 6 Viewpoints:

1.    UAE
2.    Saudi Arabia
3.    Qatar
4.    Kuwait
5.    Bahrain
6.    Oman

Competitive Landscape

Johnson Controls Revenue, Schneider Electric, Emerson Electric Revenue, LG, LeGrand, Siemens AG, Honeywell, and Apple are notable companies operating in the GCC smart home market.

Company has been covered from 3 Viewpoints in the GCC smart home market:

•    Overview
•    Recent Development
•     Revenue

Company Analysis:

1.    High Liner Foods Inc.
2.    Johnson Controls
3.    Schneider Electric
4.    Emerson Electric
5.    LG
6.    LeGrand
7.    Siemens AG
8.    Honeywell
9.    Apple