In recent years smart home devices have been changing the way Canadians live, work, and interact with their homes. A growing number of Canadians are utilising technologies such as voice-activated assistants, energy-saving heating and lighting systems, and security systems to make their homes, and lives, smoother, more economical, more environmentally friendly, and more secure.
In this article, we explore the statistics surrounding smart home technology in Canada, looking at the industry’s growth, consumer preferences, and the impact these technological innovations are having on Canadian households.
Smart Home Technology Statistics for Canadians
- Canada’s smart home device market is expected to reach a revenue of US$3.1 billion in 2024.
- Smart appliances is the largest segment with US$0.9 billion in revenue in 2023.
- Entertainment devices, such as smart TVs and Bluetooth are the most common devices in Canada and are owned by 74% of households.
- Canadians aged 25 to 34 are the most likely age group to own smart home devices.
- Men and women are almost equally likely to own smart home devices in Canada.
- User numbers for smart home devices are expected to more than double between 2023 and 2028.
- 51% of the market revenue is generated by companies accounting for less than 2% of the market share each.
- 72% of Canadians worry about the privacy of their personal data when using smart home devices.
- Globally, 11% of homes are using at least one type of smart home device, while the proportion is 67% in the United States.
What Is a Smart Home?
Smart homes are residences that use devices connected to the internet to enable remote monitoring and managing of systems and appliances, for example, heating and lighting. The systems are often controlled through smart home apps on smartphones or other network devices.
You can programme smart home devices to follow specific commands or schedules or you can set them to respond to voice commands using a home assistant such as Google Assistant or Alexa. An example of a smart device is the smart thermostat, which can learn your habits to automatically adjust the temperature of your home to fit your schedule.
Examples of Common Smart Home Technologies
One of the most common smart devices in Canadian homes is smart TVs, which connect to the internet and access content through a range of applications. Smart thermostats are becoming more popular in Canada and helping Canadians save money and the environment.
Other devices that are increasingly found in Canadian homes include smart kitchen appliances, smart lighting systems, smart door locks, smart garage door openers, smart security systems, and smart plugs.
What Are the Pros and Cons of Smart Homes?
While there are many advantages to using smart devices at home, there are also some disadvantages. Below are some of the key advantages, followed by key disadvantages.
Advantages:
- It can improve the efficiency of your home and save resources and money.
- Manage tasks for you, such as turning music on and off, setting an alarm, or searching the web.
- They can accommodate user preferences, for example, turning on your favourite music as you arrive home.
- They can provide assurance and peace of mind when you can monitor your home remotely.
Disadvantages:
- You will need a reliable internet connection.
- Many devices lack built-in encryption which can leave your network vulnerable to hackers.
- People with little experience or patience with technology may find the systems complex to run.
- Potential lack of privacy as companies collect user data.
- Smart home devices are still expensive and a whole house makeover can cost thousands.
Smart Home Device Market in Canada
In Canada, the smart home device market is expected to see substantial revenue growth with revenue projected to reach US$3.1 billion in 2024. The annual growth rate is expected to be 9.41% between 2024 and 2028 with the market revenue reaching US$4.5 billion in 2028. Globally, the United States had the highest revenue in the market with an expected revenue of US$38.8 billion for 2024.
Revenues by Segment
The segment that contributes most to the industry’s revenue is smart appliances. According to Statista, the revenue from this segment was US$0.9 billion in 2023 and it is expected to reach US$1.4 billion by 2028. Control and connectivity is the next biggest segment with revenues of US$0.7 billion in 2023 and expected revenues of US$1.3 billion in 2028.
The smallest segment is comfort and lighting, with a revenue of US$0.2 billion in 2023 and US$0.4 billion in 2028.
Ownership of Smart Home Devices in Canada
Based on a survey published on Statista, in December 2023, 74% of Canadian homeowners reported they own smart devices for entertainment purposes, including smart TVs, smart speakers, streaming devices, and Bluetooth. This was by far the most popular type of smart home device in Canada as the next most popular category, electricity and lighting devices, was only in use in 29% of Canadian homes.
28% of Canadians had installed smart devices to improve the safety and security of their homes and 26% had smart speakers with a virtual assistant. 25% of homes had smart appliances, such as robot lawnmowers, smart microwaves, and robot vacuums and 24% had devices that helped them to manage energy consumption, including connected thermostats and temperature sensors. 18% had no smart home devices and 4% answered “other” in the survey.
User Demographics in Canada
There are no significant differences between age groups when looking at the ownership of smart home devices in Canada. There is only just over 10 percentage points difference between the most and least likely age groups to own smart home devices.
In 2021, 26.3% of Canadians aged between 25 and 34 owned smart home devices. The next most likely ownership group was the 35-44-year-olds with 23% reporting owning at least one type of smart home device. In the other age groups, the percentages of ownership were 15.2% among 18-24-year-olds, 19.8% among 45-54-year-olds, and 15.7% among 55-64-year-olds, which was the oldest age group included in the survey.
The survey, which included over 2,000 households, found that the ownership was almost equal among Canadian men and women. In 2021, 51.5% of the owners were men and 48.5% were women (these were the only two options).
The level of household income did not make a significant difference either although households with higher income were slightly more likely to have smart home devices than those on lower incomes. 36.8% of Canadians in the high-income bracket owned smart home devices in 2021 compared to 34.1% of Canadians in the middle-income bracket and 29% of Canadians in the low-income bracket.
Use of Smart Home Devices Is Expected to Double by 2028
Comparing the user numbers from 2023 to the predicted user numbers for 2028 shows that user numbers are likely to double in five years in all device groups. According to Statista, 2.6 million Canadians use smart devices at home for comfort and lighting. This number is expected to grow to 7.5 million by 2028.
The number of Canadians using control and connectivity devices is expected to grow from 3.1 million users to 8.7 million, energy management from 2.4 million to 6.8 million, and security devices from 2 million to 5.1 million.
Similarly, the proportion of households using smart home devices will more than double. In 2028, 43.3% of Canadian households are projected to use comfort and lighting devices in their homes compared to 15.8% in 2023. Control and connectivity devices will be found in 49.7% of homes (up from 19.3%), energy management devices in 39.3% of homes (up from 14.5%), and security devices in 29.4% of homes (up from 12.3%).
What Concerns Canadians Most About Smart Home Technologies?
According to a recent survey, 72% of Canadian consumers are concerned about the security of their personal data when using smart home devices. They are concerned both about how companies are using the personal data they collect and unauthorized persons getting hold of the data.
Another main concern is the security of smart systems. 55% of Canadian consumers worry about the security of smart home devices. For example, if hackers gained access to a home smart device connected to smart locks and alarms, they could turn them off and enter your home.
Global Smart Home Statistics Highlights
Globally, it is estimated that the smart home market will be worth over US$135 billion by 2025 and the average North American home is expected to have around twenty connected devices.
In 2021, the penetration rate of smart home devices worldwide was 11%. Smart speakers, which were used in 35.6% of smart homes, were the most common type of device. The biggest motivator for purchasing smart home devices was security at 37%.
In the United States, which has the highest smart home device revenue, nearly 67% of homes are using at least one type of smart home device. In addition, 34% of Americans say they intend to buy at least one smart home device in the next twelve months, while 54% would install smart home products in their homes if they were selling and having smart devices would make the sale faster.
Conclusion
The statistics in this article show that smart home technology is not just a passing trend but the future of residential living in Canada and across the globe. If the trends continue on the same trajectory, the ownership of smart home devices in Canada will more than double by 2028.
While many Canadians are embracing the new technology to make their homes more efficient and comfortable, others still have reservations about the safety and security of the devices. The main concerns are over people hacking into their systems to control the devices or steal personal data.
Frequently Asked Questions
What type of smart home devices are there in Canada?
Canadian homes have a wide range of smart devices to help people to run their homes more efficiently or to provide entertainment and security. The most common devices in use in Canada are Bluetooth, smart TVs, and other entertainment related devices. People also have devices that can control heating and lighting or provide security. Smart appliances such as robot vacuums and lawnmowers, smart fridges and microwaves are also becoming increasingly popular.
Are smart home devices safe?
Smart devices for home are generally considered safe. However, some people do have concerns over their security, especially against hackers who may try to access to your system to steal personal data or to gain access into your home if you use devices such as smart locks.
Are smart home devices expensive?
It depends on the smart home device. While products such as robot vacuums and smart TVs are becoming more affordable if you want to integrate your home, you could be looking at thousands of dollars.
Who buys the most smart home devices?
In Canada, there are no significant differences between age groups, genders, or income levels. However, the 25-34 and 35-44 age groups are slightly more likely to own smart home devices than other age groups as are Canadians on higher household incomes.
Globally, the most smart home devices are sold in the United States. While the home penetration rate is 11% globally, in the United States, 67% of homes have at least one smart home device.