South Korea Smart Home Market Size (2024 - 2029)

South Korea Smart Home Market Analysis

The South Korea Smart Home Market size is estimated at USD 4.80 billion in 2024, and is expected to reach USD 12.55 billion by 2029, growing at a CAGR of 21.20% during the forecast period (2024-2029).

• Digitalization has emerged as a linchpin for economic growth in the 21st century. It not only fosters new economic activities and products but also bolsters productivity. Consequently, staying competitive in the market now mandates a robust digitalization strategy. South Korea has adopted a "government-driven, infrastructure-first" policy for digital transformation to revitalize economic growth. This strategic approach aims to democratize digitalization, ensuring all citizens, regardless of their economic status, can participate in the nation's innovation and inclusive growth drive. This inclusivity was a pivotal factor that catalyzed the inception of home automation in South Korea.
• South Korea stands out as a global leader in connectivity. According to APNIC, the nation boasts 100% exceptional household Internet accessibility, with all 21.36 million households seamlessly connected. This universal access underscores the nation's commitment to ensuring its populace can leverage the Internet's vast resources and opportunities.
• Having already claimed top spots in high-speed internet adoption and smartphone ownership, South Korea is now setting its sights on cutting-edge technologies like 5G and the Internet of Things (IoT). The surge in IoT adoption in South Korea is propelled by its integration into smart city initiatives and a populace increasingly open to embracing new technologies and purchasing related devices, thereby amplifying the role of automation in their daily lives.
• Moreover, South Korea's heightened emphasis on expanding its roster of smart cities is extending the reach of digital infrastructure into the residential sector. For instance, in May 2024, South Korea was in discussions with the UAE to collaborate on smart cities, clean energy, and future mobility projects. As cities evolve into smarter, more sustainable entities, adopting advanced technologies streamlines day-to-day operations and enhances overall comfort levels, benefiting both urban and suburban communities.
• Despite strong network connectivity, extensive use of mobile devices, and a rich intellectual property landscape, South Korea faces significant cyber threats. The nation considers cybersecurity a crucial part of national security in response to this serious situation.
• While South Korea boasts one of the world's fastest IT infrastructures, its susceptibility to cyberattacks poses a significant challenge, potentially impeding market growth. However, buoyed by its advanced ICT infrastructure and strategic geopolitical positioning, South Korea emerges as an alluring market for the smart home sector.

South Korea Smart Home Industry Segmentation

A smart home refers to a set of integrated and networked devices that automate different functions within a home and can communicate with each other and with a centralized control interface. The prominent purpose of this type of system is to enhance comfort, safety, energy efficiency, and management of household resources.

The South Korean smart home market is segmented by product type (comfort and lighting, control and connectivity, energy management, home entertainment, security, smart appliances, and HVAC control) and technology (Wi-Fi, Bluetooth, and other technologies). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.