Smart Home Automation Market Size - By Product, Technology, Fitment Analysis, Share, Growth Forecast, 2025 - 2034

Smart Home Automation Market Size

The global smart home automation market was valued at USD 73.7 billion in 2024 and is estimated to grow at a CAGR of 13.7% to reach USD 254.3 billion by 2034. The growth of the market is attributed to increasing adoption of artificial intelligence (AI) and the Internet of Things (IoT) in home automation.
 

The rapid proliferation of cutting-edge technologies like artificial intelligence (AI) and the Internet of Things (IoT) is one of the leading factors driving the demand for smart home automation worldwide. These technologies help in managing various household tasks with voice instructions. The consumer demand for virtual AI assistants integrated into smart home devices is increasing as they allow for hands-free control of thermostats, kitchen appliances, security systems, and other gadgets.
 

Home security have become a primary driver for the adoption of smart home technologies. AI-powered smart locks, surveillance cameras, and alarm systems can easily recognize objects or faces owing to the pattern/face recognition feature. These devices can send notifications to the home owner’s smartphone regarding visitors at the front door, providing enhanced security and peace of mind to homeowners.
 

Key consumer electronics companies are increasingly integrating AI assistants into their product offerings for automating smart home devices according to user preferences. For instance, LG developed DeepThinQ 1.0 supporting voice and video recognition and cloud storage. This AI assistant can automate activities such as turning off lights when the door is locked from the outside, running the robotic vacuum in the owner’s absence, and turning on the air purifier before the owner reaches home and studies human habits and automatically learns as well as applies those settings. Similarly, Samsung integrated SmartThings into their smart home products with Bixby voice control. These products can recognize individuals in the house and adjust all settings according to user preferences. The smart home adoption reached 300 million in 2023, and by 2028, the number of smart homes will reach 425 million worldwide. 
 

Companies should focus on developing AI assistants that learns user behavior across multiple smart home devices (not just a single brand) and automates functions, providing a more intuitive, personalized, and efficient experience for the user.
 

Smart Home Automation Market Trends

• One of the key trends in the smart home automation industry is the increasing consumer demand for health-related tech. The COVID-19 pandemic has brought the touchless technology concept to the home, which was largely associated with public and commercial spaces for a very long time. The consumer demand for devices that control their home environment have increased rapidly post pandemic. Devices such as smart thermostats with humidity sensors; smart air conditioners and air purifiers; smart water filtration systems; and smart lighting that aligns with circadian rhythms of the human body have very high demand. Key players are increasingly introducing innovative products to cater to this demand of touchless technology devices. For example, Kamonk offers a range of smart devices like smart switches, plugs, and lighting for home automation, and they can be operated using voice control or a mobile application.
   
• Hyper-personalization of home environment is another key trend driving the smart home automation market. There is an increased consumer demand for creation smart devices that precisely matched the users customized preferences. Many consumers are considering it their responsibility to adopt green and sustainable measures and smart home automation systems precisely optimize energy usage as per personalized preferences, thus driving market growth.
   
• Companies should focus their research initiatives towards AI-driven bio-responsive smart home system that autonomously adjusts climate, lighting, air, and water quality based on real-time biometric and environmental data collected from the wearable of users and other smart home devices. Such innovations would allow companies to offer unparalleled level of automation and personalization.  
   

Smart Home Automation Market Analysis

Based on technology, the market is segmented into wired and wireless.
 

• Wired market accounted for USD 28 billion in 2023. Wired systems connect devices using physical cables. These setups are stable and reliable but require professional installation and are best suited for new constructions. These are used in large homes or commercial properties and users prioritizing stability.
   
• The wireless market accounted for USD 38.3 billion in 2022. Wireless systems rely on technologies like Wi-Fi, Zigbee, or Z-Wave, allowing devices to connect without physical wiring. the increasing trend of retrofitting existing homes, and quick installation with minimal disruption is supporting the market growth. 
   

Based on fitment, the market is divided into new construction and retrofit. The high growth of new construction market is attributed to increasing incorporation of features like renewable energy harvesting, rainwater collection, and waste disposal systems and more.
 

• The new construction market is expected to account for share of 55.6% of the global smart home automation market in 2024 owing to increasing adoption of smart home features such as smart lights, security systems, energy control systems. Furthermore, incorporating features like renewable energy harvesting is supporting the sustainability quotient of the new constructions.
   
• The retrofit market is expected to account for a share of 44.4% of the global smart home automation industry in 2024. Retrofitting existing structures with smart home automation helps to optimize energy consumption, improve occupant comfort, reduce environmental footprint, and boost overall productivity which supports the market growth during the forecast period.
   

Based on product, the market is segmented into hardware and services. The hardware segment is again bifurcated into the lighting control, security & access, HVAC control, entertainment control and others.
 

• The hardware dominated the market accounting for USD 51.7 billion in 2024.  The growth of smart home automation in hardware is attributed to the increasing adoption of Internet of Things (IoT), smart thermostats, smart locks, smart cameras, smart lighting fixtures etc.  
   
• The services market accounted for USD 20.3 billion in 2023. The growth of this segment is driven by increasing adoption of voice assistant like amazon Alexa, Siri, and Google assistant for controlling and managing smart home devices.
   

 

In 2024, North America accounted for the largest share of 32.7% of the global smart home automation market. The large share of this market is attributed to increasing customer preference, increased convenience, enhanced security, energy efficiency, and the ability to manage home systems remotely.
 

• In 2024, the U.S. market accounted for USD 20.9 billion. United States smart home automation industry is driven by the increasing customer preference for convenience, efficiency, and increased connectivity in their homes. They are drawn to smart home devices that offer seamless integration, automation, and energy savings. The desire for security and remote monitoring capabilities also supporting the growth of market.
   
• The Canada smart home automation industry is expected to reach USD 8.5 billion by 2034. The market for Canada smart home automation is driven by factors such as increased convenience, enhanced security, energy efficiency, and the ability to manage home systems remotely.
   

In 2024, Europe accounted for a share of 23.8% of the global smart home automation market. Factors supporting the growth of smart home automation in Europe are connectivity with eSIM technology and the growing popularity of voice-controlled smart assistants and devices.
 

• The Germany market is expected to reach USD 14.6 billion by 2034. The growth of smart home automation in Germany is attributed to the increasing demand of enhanced security and growing energy saving initiatives.
   
• The UK market is expected to grow at a CAGR of 13.3% during the forecast period. The UK market is bolstered by the rapid adoption of smart energy management devices such as smart thermostats, lighting systems and appliances can significantly reduce energy consumption, leading to lower utility bills and a reduced environmental impact.
   
• France industry is expected to grow at a CAGR of 12.2% from 2025 to 2034. France smart home automation market has growing popularity of voice-controlled smart assistants and devices. Products like smart speakers and voice-activated thermostats are gaining traction among consumers, providing a hands-free and intuitive way to interact with smart home technology.
   
• Italy market is expected to reach USD 3.4 billion by 2034. The market for smart home automation in Italy is driven by increasing seamless integration and control of various household functions through mobile apps or voice assistants which is driving the demand for smart home products.
   
• Spain industry is projected to reach USD 2.9 billion by 2034. The Spain focus on sustainability and energy efficiency which is driving the adoption of smart home automation technologies that help reduce energy consumption and promote eco-friendly practices among consumers.
   

In 2024, Asia Pacific accounted for a share of 21.6% of the global smart home automation market. The presence of leading consumer electronics brands in the region coupled with a large customer base demanding premium features and user experience in devices are supporting the market growth in the region.
 

• The China market is expected to grow at a CAGR of 16.2% during the forecast period. China’s leadership in 5G and IoT will edge further innovation, particularly in areas like smart energy management, home security, and automation is also contributing to the demand of the smart home automation.
   
• Japan is expected to account for a share of 20.1% of the smart home automation industry in Asia Pacific for 2024. the increasing adoption of home automation systems that control lighting, heating, air conditioning, and home appliances from a centralized app or device and voice control systems, such as Amazon Alexa, Google Home, etc. are driving the market growth.
   
• South Korea market is expected to grow at a CAGR of 14.0% during the forecast period. The robust economy of South Korea supports consumer spending on smart home devices and technologies. As disposable incomes rise and urbanization continues, more households are investing in smart home solutions to improve their quality of life.
   
• Smart home automation market in India is expected to grow at a highest CAGR of 16.9% during the forecast period. Smart home automation in India is attributed to the advancements on the Internet of Things (IoT) and communication protocols. Smart devices were becoming more interconnected and able to communicate seamlessly with one another is also supporting the market growth of smart home automation.
   
• The smart home automation industry in ANZ is expected to grow at a CAGR of 14.3% during the forecast period. The adoption of smart home automation in ANZ is supported by increasing advancements in digitally connected and controlled devices within a house that can be remotely controlled (e.g., Bose Smart Speaker 500, TP-Link KE100 KIT), sensors and actuators that support automation in any way (e.g., Sonoro STREAM, TP-Link KE100 KIT), control hubs to connect sensors and actuators with remote controls and to each other and B2C hardware and software sales.
   

In 2024, Latin America accounted for a share of 11.9% of the global smart home automation market. The high adoption of integration of artificial intelligence (AI) and machine learning capabilities is a major factor growth of smart home automation in the region.
 

• Brazil market is expected to grow at a CAGR of 13.6% during the forecast period. The growth of market in Brazil is attributed to the integration of artificial intelligence (AI) and machine learning capabilities such as smart refrigerators can analyze the contents of the fridge and suggest recipes based on the available ingredients, while smart washing machines can automatically adjust the wash cycle based on the fabric type and load size.
   
• Mexico market is expected to grow at a CAGR of 12.2% during the forecast period. The growth of smart home automation industry in Mexico is attributed to GDP/capita, level of digitization, and consumer attitudes toward smart home integration.
   

In 2024, Middle East and Africa accounted for a share of 10.0% of the global smart home automation market. The increased push towards remote access, energy efficiency, comfort, convenience, safety and increasing adoption in wireless home automation, advanced home security are major factors driving market growth.
 

• In 2024, UAE accounted for a share of 17.2% of the Middle East & Africa market. The growth of UAE smart home automation industry is driven by factors such as remote access, energy efficiency, comfort, convenience, safety.
   
• Saudi Arabia market is expected to grow at a CAGR of 12.8% during the forecast period. Saudi Arabia smart home automation is driven by increasing adoption in wireless home automation, advanced home security, smart home theater, smart home network, home motorization, smart lighting automation and home sensors are driving the market growth.
   
• South Africa market will reach USD 2.6 billion by 2034. The factors like technological advancements, consumer demand, government initiatives, increased connectivity, affordability, awareness and education are driving the market growth in South Africa during the forecast period.
   

Smart Home Automation Market Share

The smart home automation industry is competitive and highly fragmented with the presence of established global players as well as local players and startups. The top 7 companies in the global ambient light market are Amazon (Ring), Google (Nest Labs), Apple Inc. (HomeKit), Samsung Electronics, Koninklijke Philips N.V, Ecobee Inc., Honeywell International, Inc., Lutron Electronics Co., Inc., collectively accounting for a share of 62.9%. These companies are competing in the market by offering advanced smart home automation interact with AI, ML and IoT devices. For instance, In September 2023, Amazon introduces smart home automation with new Alexa experiences powered by generative AI, and new ways to control devices with Echo Hub and Map View. The new Alexa LLM (Large Language Model) can manage a nearly endless amount of variation, and it can recognise for specific home set up to trigger the right APIs and actions.
 

New product launches are the most significant strategic development which key players in the market are adopting for augmenting their market share. Key smart home automation manufacturers are increasingly launching new products for proliferation in automotive sectors. For instance, in October 2023, Ecobee launched its first smart doorbell including a camera that integrates with its video-enabled thermostats. The ecobee Smart Doorbell Camera is designed to see what others can’t with an industry-leading vertical field of view, crystal clear vision day or night, and radar sensing technology for more accurate detection and smarter notifications.
 

Smart Home Automation Market Companies

The top 5 companies operating in the smart home automation industry are:

• Amazon (Ring)
• Google (Nest Labs)
• Apple Inc. (HomeKit)
• Samsung Electronics
• Koninklijke Philips N.V
• Ecobee Inc.
• Honeywell International, Inc.
• Lutron Electronics Co., Inc.
   

Samsung Electronics, as a global leader in technology and electronics manufacturing, has a broad portfolio that includes various components and consumer electronics. While Samsung is primarily known for its consumer electronics products like smartphones, televisions, and smart home appliances, it also has a significant presence in the components market through manufacturing displays, semiconductors, and other electronic parts. For instance, in January 2025, Samsung announced that its connected appliances and smart home devices will be able to act as motion and sound sensors for its smart home platform SmartThings in early 2025 and 2026. This includes its televisions, Music Frame speaker, Family Hub fridge, and more.
 

Honeywell International Inc. smart home automation devices enabling expanded surveillance and monitoring capabilities. The system supports various accessories, including security access sensors for windows and doors, which detect even minimal movements and provide alerts when unauthorized access occurs. As part of the smart home automation industry, these solutions contribute to enhanced safety, real-time monitoring, and seamless integration with connected home ecosystems, providing a more intelligent and responsive security environment.
 

Smart Home Automation Industry News

• In March 2023, ADT and Google announce their first integrated smart home security system which is available for DIY users. The most sophisticated and comprehensive DIY security system ever developed by ADT is now available. It is also the first DIY product from ADT and Google to be fully integrated.
   
• In September 2024, ABB India, a global leader in electrification and automation announced the launch of ABB-free@home in India, a Smart Home automation system with enhanced interoperability. This cutting-edge and comprehensive wireless home automation solution is designed to enhance comfort, security, and energy efficiency for the residential segment. It allows users to integrate and control additional elements such as white good appliances, third party devices as well as EV chargers, through a single interface.
   

This smart home automation market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Product

• Hardware
  • Lighting control
  • Security & access
  • HVAC control
  • Entertainment control & others
  • Others 
• Services

Market, By Technology

• Wired
• Wireless

Market, By Fitment

• New construction
• Retrofit

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa