Smart Home Market

Market Definition

The market encompasses the development, production, and integration of connected devices and systems that enhance residential living through automation, remote control, and data-driven intelligence. 

This includes smart appliances, security systems, lighting, thermostats, entertainment systems, and voice-activated assistants that are interconnected through the Internet of Things (IoT). The report offers a thorough assessment of the main factors driving market expansion, along with detailed regional analysis and the competitive landscape influencing industry dynamics.

Smart Home Market Overview

The global smart home market size was valued at USD 137.43 billion in 2024 and is projected to grow from USD 171.81 billion in 2025 to USD 851.90 billion by 2032, exhibiting a CAGR of 25.50% during the forecast period. 

Market growth is driven by growing consumer awareness of energy conservation, leading to increased adoption of devices that optimize power usage. Enhanced connectivity and remote control capabilities are making smart home technologies more accessible and appealing.

Major companies operating in the smart home industry are Resideo Technologies, Inc., ABB, Schneider Electric, Amazon.com, Inc., Siemens, Emerson Electric Co., Johnson Controls, Robert Bosch Smart Home GmbH, SAMSUNG, Apple Inc., Snap One, LLC, Google LLC, Legrand, LG Electronics, and ADT.

Additionally, the integration of AI with IoT is enabling smarter automation, personalized user experiences, and improved security features in connected systems, which is supporting market growth.

• In July 2024, LG Electronics acquired an 80% stake in Netherlands-based smart home platform company Athom to strengthen its AI-enabled intelligent space business. By integrating Athom’s open connectivity capabilities with its generative AI-powered LG ThinQ platform, LG aims to deliver deeply personalized smart home experiences and expand its AI home concept into commercial and mobility sectors.

Key Highlights:

1. The smart home industry size was recorded at USD 137.43 billion in 2024.
2. The market is projected to grow at a CAGR of 25.50% from 2025 to 2032.
3. Asia Pacific held a market share of 35.03% in 2024, with a valuation of USD 48.14 billion.
4. The lighting control segment garnered USD 33.26 billion in revenue in 2024.
5. The wired segment is expected to reach USD 318.09 billion by 2032.
6. The retrofit segment is anticipated to witness the fastest CAGR of 25.75% through the projection period.
7. North America is anticipated to grow at a CAGR of 26.08% over the forecast period.

Market Driver

Rising Global Internet Access

Rising global internet access is propelling the growth of the smart home market by enabling seamless connectivity between devices and users. As more households gain reliable internet connections, the adoption of smart technologies such as voice assistants, connected appliances, and remote monitoring systems is rising. This connectivity allows consumers to control home functions such as lighting, security, and climate from anywhere, enhancing convenience and energy efficiency.

• For instance, in November 2024, according to the International Telecommunication Union (ITU), approximately 5.5 billion people are online in 2024, marking a rise of 227 million users compared to 2023.

Market Challenge

Rising Privacy and Data Security Concerns

A major challenge hindering the expansion of the smart home market is increasing concerns related to privacy and data security. As devices constantly collect and transmit personal information, users worry about potential data breaches, unauthorized access, and misuse of sensitive information. 

The risk is increased by the integration of multiple devices from multiple manufacturers with varying security standards. Consumers are demanding more transparency and robust data protection measures, prompting companies to invest in stronger cybersecurity protocols to maintain trust and ensure user safety in connected home environments.

To address this challenge, companies in the market are investing in advanced encryption technologies, secure cloud storage, and multi-factor authentication to protect user data. They are also adopting standardized security protocols and collaborating with cybersecurity experts to regularly audit and update their systems. 

They are enhancing transparency by clearly outlining data usage policies and offering users more control over their personal information. Additionally, manufacturers are developing localized data processing features, ensuring sensitive information is handled within the device rather than being sent to remote servers, thereby reducing the risk of external breaches and cyber threats.

Market Trend

Rise of Subscription-Based Services

The rise of subscription-based services is transforming the smart home market, as companies shift from one-time device sales to ongoing service models. Consumers benefit from enhanced features, personalized experiences, and advanced AI capabilities through monthly or yearly plans. This trend reflects a broader trend toward offering continuous value and deeper user engagement.

It also allows providers to maintain steady revenue streams while updating services over time. As smart home technology becomes more advanced, the subscription model is emerging as a key approach for sustained innovation and convenience.

• In February 2025, Amazon introduced Alexa+, an enhanced version of its smart assistant powered by large language models (LLMs). This marks the company’s first major Devices event since 2023. The new service, featuring advanced AI capabilities, is priced at USD 19.99 per month.

Smart Home Market Report Snapshot

Segmentation	Details
By Product	Lighting Control, Security and Access Control, HVAC Control, Entertainment, Smart Devices, Home Healthcare, Others
By Protocol	Wireless, Wired, Hybrid
By Application	New Construction, Retrofit
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Product (Lighting Control, Security and Access Control, HVAC Control, Entertainment, Smart Devices, Home Healthcare, and Others): The lighting control segment earned USD 33.26 billion in 2024 due to increasing demand for energy-efficient and customizable lighting solutions in residential and commercial spaces.
• By Protocol (Wireless, Wired, and Hybrid,): The wired segment held a share of 37.74% in 2024, propelled by its reliability and security advantages in smart home installations.
• By Application (New Construction, and Retrofit): The new construction segment is projected to reach USD 524.35 billion by 2032, fueled by the integration of smart technologies in modern building designs.

Smart Home Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Asia Pacific smart home market accounted for a share of around 35.03% in 2024, valued at USD 48.14 billion. This dominance is reinforced by the adoption of rapid industrial automation and growing investments in intelligent manufacturing. The region is witnessing increased integration of advanced control systems, robotics, and automation technologies across key sectors such as home appliances, automotive, and electronics. 

Expanding digital transformation initiatives are enhancing manufacturing efficiency and enabling mass customization. The presence of leading industrial Internet platforms fosters innovation and smart ecosystem development. 

Additionally, strategic partnerships and acquisitions are helping companies strengthen their market presence and technological capabilities, fueling sustainable growth in industrial automation and smart manufacturing across Asia Pacific.

• In February 2025, Haier Group acquired a 10% equity stake and 19.24% voting rights in Shanghai STEP Electric Corporation, becoming its indirect controlling shareholder. Haier plans to increase its stake to 26.83% by subscribing to newly issued shares. STEP, a global leader in industrial automation, specializes in control systems, robotics, and elevator control solutions. This acquisition aligns with Haier’s focus on advancing intelligent manufacturing, driving digital transformation, and expanding its smart home and industrial ecosystems through its COSMOPlat Industrial Internet platform.

The North America smart home industry is set to grow at a robust CAGR of 26.08% over the forecast period. This growth is fueled by rising consumer adoption of smart home technologies, widespread high-speed internet access, and growing demand for connected living solutions. 

Investor interest is prompting startups and established players to expand their service capabilities and geographic reach. Additionally, the franchising model is gaining traction, allowing companies to scale rapidly and deliver consistent service experiences across regions. 

As consumers increasingly prioritize convenience, security, and energy efficiency, smart home installations are becoming mainstream. These trends, supported by a favorable investment climate and ongoing technological advancements, are boosting demand across residential and commercial applications.

• In September 2024, California-based smart home services company Daisy secured a USD 7 million Series B funding, led by Goldcrest Capital and Bungalow Capital, with participation from Bullish. This follows a USD 11 million Series A round in June, signaling strong investor confidence in the company’s franchise-driven growth strategy. As part of its expansion efforts, Daisy also acquired fellow smart home franchise SaaviHome to increase its unit count and enhance service capabilities. With support from venture and angel investors, the company is focused on sustainable, long-term growth over traditional private equity funding.

Regulatory Frameworks

• In the U.S., the Federal Communications Commission (FCC) oversees smart home regulations and promotes voluntary cyber labeling for IoT devices to enhance security standards.
• In India, the Department of Telecommunications (DoT) regulates smart home technologies through the Mandatory Testing and Certification of Telecommunication Equipment (MTCTE). It ensures the safety and reliability of telecommunication equipment while also complying with established standards.

Competitive Landscape

Major players in the smart home industry are focusing on strategic acquisitions to strengthen their market presence and diversify their product offerings. By acquiring companies with advanced technologies, they are enhancing their capabilities in sustainable and eco-friendly solutions. 

Expanding into commercial products allows them to serve a wider range of industries. Additionally, leveraging the expertise of acquired teams fosters innovation and operational efficiency.

• In October 2024, Haier Smart Home Co., Ltd. Acquired Carrier Commercial Refrigeration from Carrier Global Corporation for approximately USD 775 Million. This strategic acquisition enhances Haier’s product portfolio and strengthens its position in the global commercial refrigeration market. The deal includes advanced carbon dioxide refrigeration technologies aimed at promoting environmental sustainability.

List of Key Companies in Smart Home Market:

• Resideo Technologies, Inc.
• ABB
• Schneider Electric
• Amazon.com, Inc
• Siemens
• Emerson Electric Co.
• Johnson Controls
• Robert Bosch Smart Home GmbH
• SAMSUNG.
• Apple Inc
• Snap One, LLC
• Google LLC
• Legrand
• LG Electronics
• ADT

Recent Developments (M&A/Partnerships /New Product Launch)

• In December 2024, Haier Smart Home acquired Electrolux South Africa (Kwikot) for USD 133.6 million, advancing its expansion strategy in Africa. The acquisition enhances Haier’s presence in the water heating segment and strengthens its position as a global leader in home appliances. By integrating Kwikot’s expertise, Haier aims to drive innovation and sustainable growth across South Africa and the broader MEA region. This move aligns with the company’s vision to expand its smart home ecosystem in emerging markets.
• In May 2024, ABB acquired Siemens’ Wiring Accessories business in China to enhance its electrification portfolio and strengthen its position in the smart buildings market. The acquisition includes wiring accessories, smart home systems, smart door locks, and other home automation products, which will continue under the Siemens brand through a licensing agreement. This deal provides ABB access to an extensive distributor network in 230 cities, along with regional sales, manufacturing, and management capabilities.