Smart Home Market

Smart Home Market Size

The global smart home market was estimated at USD 183.2 billion in 2024. The market is expected to grow from USD 199.4 billion in 2025 to USD 414.2 billion in 2034 growing at a CAGR of 8.5%.

Security and efficiency are the main factors driving the growth of smart home technologies. This has resulted in a large number of CCTVs being installed around the properties' roads, offices, and other places. According to Federal Bureau of Investigation (FBI) figures, a burglary occurs every 30 seconds in the United States, resulting in approximately 3,000 burglaries every day.  Apart from that, smart homes are now the focus of attention due to the adoption of secure and smart locks. These safe and smart locks offer a base for a more automated and interconnected home. The market for smart home gadgets will grow due to the introduction of new software technologies like Matter, which enable brand compatibility.

However, the introduction of virtual assistants that are voice-controlled like Apple Siri, Google Assistant, and Amazon Alexa has influenced how users engage with their smart homes. The demand for voice-enabled home automation systems is rising as voice commands are becoming a popular and simple way to manage various types of products and systems. Furthermore, the average household saves roughly USD 225 in energy expenses annually by using LED lighting, which uses about 15% of the electricity used in an ordinary home.

Smart Home Market Trends

• Smart technology and automation are a significant trend in smart home industry and will continue to grow, affecting many industries like consumer electronic, home security etc. One major development in smart home technology is the increasing use of artificial intelligence. Machine learning enables artificial intelligence to monitor and predict important actions from a sensor before the homeowner. For example, in October 2022, Google made it possible to use voice input for message typing as well as add emojis to messages with Google Assistant for better messaging experience.
  
• Also, the adoption of these internet technology is increasing. Today, the market is flooded with various IoT devices like smart homes, smart wearables, and intelligent cities. Particularly, smart homes can enjoy convenient and secure devices such as Amazon Alexa, smart locks, smart thermostats, smart lighting systems, and security systems.
  
• Fitness goals and daily routine activities are tracked by wearable technology, which includes smartwatches and fitness trackers. Products that can be integrated with voice assistant have huge market demand. This is another effective solution to the connectivity problem and voice control for any smart home appliance. In September 2022, Lutron Electronics Co., Inc. introduced the Diva Smart Dimmer and Claro Smart Switch for wireless smart lighting control and other home automation features.
  

Smart Home Market Analysis:

The demand for smart homes is increasing as more smart devices are used to build safer, more convenient, and energy-efficient structures. Smart home devices such as speakers, thermostats, lights, security cameras, and even voice assistants are becoming more common. New developments in AI, IoT, and 5G, plus people caring more about saving energy, are making more people want these things. North America and Europe have the biggest share of the market, but Asia-Pacific is growing really fast because of smart city projects and people having more money to spend. Some problems include high costs, privacy, and different brands not working together well.

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• The smart home market by product type is segmented into security & access controls, lighting control, entertainment devices, HVAC, smart kitchen appliances, home appliances, smart furniture, home healthcare, and others device. The security & access controls accounted for USD 50.6 billion in 2024. In the past few years, traditional CCTV has been a popular choice for households and businesses looking to keep their family and workers safe. Still, there has been a slow change towards using IP cameras in recent years.
  
• One big benefit of modern IP surveillance cameras is that we can see far-away places like backyards, garages, and parking areas that usually don't have much light. The places can be more secure by combining these cameras with other gadgets like door lock systems, burglar alarms, and even fire alarm systems. Additionally, these security products and smart devices are powered by artificial intelligence and cloud technology, which helps to improve their performance.
  

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• The smart home market is segmented into wireless protocols, wired protocols, and hybrid. Wireless protocols made up 63.9% of the market in 2024 because of the wide availability and compatibility with a wide range of devices, Wi-Fi is one of the most used technologies for smart home devices. Wi-Fi is commonly used for smart home appliances such as speakers, TV's and cameras to connect to cloud services and home networks.
  
• In addition, internet connection makes it possible for smart home products that require reliable, secure communications to network at high speed.
  
• Ethernet is less popular than wireless protocols but still it is frequently used in media servers, IP cameras, and smart home for constant speed and power. Some smart home products also allow Z-Wave and Wi-Fi connections, so customers can use Z-Wave for low-power, long-range communication and connect a range of devices via Wi-Fi.
  

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• The U.S. leads the North American smart home market accounting for USD 50.6 billion in 2024 due to integration of voice assistant and increasing demand for energy efficient products. The integration of voice assistants, such as Google Assistant and Amazon Alexa, is very common and helps users control their smart home appliances. Furthermore, consumers prefer energy-efficient products like smart lighting and thermostats, cameras, and smart security systems.
  
• Whereas the smart home market in Canada is expected to increase at a CAGR of about 8.8% in 2023. Similarly to the United States, there is a strong focus on energy-efficient solutions and smart thermostats because of the dropping temperatures.
  

Country level analysis

• In 2024, North America was the largest region in the smart home industry, generating revenue close to USD 68.5 billion and is projected to generate revenue near USD 137.7 billion by 2034. The growing concern for convenience, energy efficiency, and self-home security has made consumers invest more in smart home products. Around 70% of Americans, or more than 60.4 million households, was expected to own at least one smart device in 2023, according to The Coolest Gadgets.
  
• The average household in the US spends an estimated $1,172 on smart home device installation. 60% of Americans have said that intelligent security devices have significantly improved their living standards, while 63% of them are inclined to use advanced security technology that includes burglar alarms, home cameras, environmental monitoring, and flood, leak, and smoke detection.
• The estimated value of the smart home market in Europe for the year 2024 was valued at USD 38.1 billion and is projected to grow at a CAGR of 7.8%. Higher consumer adoption and awareness, endless resource improvements, and gravitation towards privacy and security are the main drivers of growth in the European market.
  
• The Asia Pacific smart home market is projected to make up 33.2% of the market in 2024 and grow at a CAGR of 9.9% between 2025 and 2034. Asia Pacific's market is also supported by a growing consumer base, continuous new product development, government regulations, and technological adoption.
  

Smart Home Market Share

• The top 5 companies in smart home industry include Apple Inc., Emerson Electric Co., Google LLC, Haier Group, Samsung and they collectively hold a share of 30-35% in 2024.
  
• Google LLC, a major player in the smart home market, reported USD 278.1 billion in revenue in 2023 due to their advancements and extensive product portfolio in smart home products.
  
• Google's Nest brand, which includes smart speakers, thermostats, cameras, and security systems, is gaining popularity due to its seamless integration with Google Assistant for enhanced control.
  
• Apple Inc. is another major company in the smart home market reporting annual revenue amounted to around 391 billion U.S. dollars in their 2024. Apple makes itself different by giving customers a safe and connected system through the smooth connection of smart home appliances. With products like Apple TV, HomePod, and Apple Watch, Apple gives people a complete range of smart home solutions that are easy for people to use and can be managed through iOS smartphones and the Siri voice assistant.
  

Smart Home Market Companies

Major companies operating in the smart home industry include:

• ABB
• Apple Inc.
• Crestron Electronics, Inc.
• Emerson Electric Co.
• Gira
• Google LLC
• Haier Group
• Honeywell International Inc.
• Johnson Control
• Nice Polska Sp. z o.o.
• Panasonic Corporation
• Robert Bosch Smart Home GmbH
• Samsung
• Schneider Electric
• Xiaomi      
  

Smart Homes manufacturers are most often selling high-priced products, as people know about their quality and feels comfortable using them in their homes. These companies are well established and have been in the smart home market for many years.

These manufacturers provide many benefits since they make different smart devices and systems work together, which gives more choices to customers who want to buy them. Unfortunately, these well-known brands in the Smart Home industry charge premium prices compared to new companies that have just recently started making Smart Homes. Their higher prices come from their brand value, extra features, and wide variety of products they offer.

Smart Home Industry News

• In June 2024, ABB launched ReliaHome Smart Panel, a new smart home energy management system. The product, intended for residential projects in the United States and Canada, was developed in partnership with software provider Lumin. The smart panel coordinates home energy assets, enabling energy optimization, circuit scheduling, and real-time control.
  
• In May 2024, Haier unveil the newly named company Haier Smart Home UK & Ireland. This was revealed alongside its plans to become the undisputed leader in the smart home in the UK and Ireland. The company also revealed it has developed a new connected smart home appliance product called the “Smart Cube” which includes an Inverter, battery storage, EV charger and Heat Pump controller all stacked in one unit.
  
• In June of 2024, Bosch Smart Home expanded the Bosch Smart Home Controller II with a new update that addressed the new Matter standard for communication. With this upgrade, Bosch Smart Home products can now be connected to a universal smart home ecosystem regardless of the brand. The standard created by the CSA enables integration of devices from different vendors allowing customizable setups for different users.
  
• In April 2024, Samsung introduced new connected bespoke AI-powered home appliances to enhances the performance of appliances. With built-in Wi-Fi, internal cameras, AI chips and compatibility with the SmartThings application, Samsung’s latest Bespoke AI appliances come with enhanced features and connectivity to lay the foundation for a truly smart home.
  
• In April of 2024, Gira launched a new product in the field of home automation the KNX Weather Sensor. It integrates perfectly with the already-known Weather Centre and provides up-to-date information on temperature, brightness, precipitation, and wind speed.
  
• In April 2024, Xiaomi unveiled its all-new smart home appliances line that includes Robot Vacuum cleaner S10 and Xiaomi Handheld Garment Steamer. Robot Vacuum cleaner S10 features a laser-based navigation system with 4000Pa suction and supports Alexa and Google Assistant. On the other hand, Xiaomi Handheld Garment Steamer heats up within 26 seconds, kills up to 99.99% of bacteria and removes allergens from fabrics.     
  

The smart home market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) and volume (Thousand Units) from 2021 to 2032, for the following segments:

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Market, By Type

• Security & Access Controls
  • Security Cameras
  • Video Door Phones
  • Smart Locks
  • Remote Monitoring Software & Services
  • Others
• Lighting Control
  • Smart Lights
  • Relays & Switches
  • Occupancy Sensors
  • Dimmers
  • Other Products
• Entertainment Devices
  • Smart Displays/TV
  • Streaming Devices
  • Sound Bars & Speakers
• HVAC
  • Smart Thermostats
  • Sensors
  • Smart Vents
  • Others
• Smart Kitchen Appliances
  • Refrigerators
  • Dish Washers
  • Cooktops
  • Microwave/Ovens
  • Others
• Home Appliances
  • Smart Washing Machines
  • Smart Water Heaters
  • Smart Vacuum Cleaners
  • Others
• Smart Furniture
  • Table
  • Chair
  • Others
• Home Healthcare
• Others Device  

Market, By Connectivity

• Wireless Protocols
  • ZigBee
  • Wi-Fi
  • Bluetooth
  • Z Wave
  • Others
• Wired Protocols
• Hybrid

Market, By Price

• Low
• Medium
• High  

Market, By Application

• New Construction
• Retrofit

Market, By Distribution Channel

• Online
• Offline

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

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