Smart Home Market to Grow by USD 255.2 Billion (2025-2029), Rising Consumer Interest in Home Automation Drives Growth, Report on How AI Is Redefining Market Landscape - Technavio

NEW YORK, Jan. 30, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global smart home market size is estimated to grow by USD 255.2 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 23.5%  during the forecast period. Growing consumer interest in home automation is driving market growth, with a trend towards rising number of strategic partnerships and alliances. However, increase in issues related to interoperability  poses a challenge. Key market players include ABB Ltd., Allegion Public Ltd. Co., Amazon.com Inc., Apple Inc., ASSA ABLOY AB, Carrier Global Corp., Comcast Corp., Google LLC, Honeywell International Inc., Hubbell Inc., Johnson Controls, Legrand SA, LG Corp., Lutron Electronics Co. Inc., Panasonic Holdings Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schneider Electric SE, Snap One LLC, and Vivint Inc..

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Market Driver

The smart home market is thriving with trends such as home monitoring, energy-saving, and convenience at the forefront. The smart home industry is growing rapidly, offering safety and security solutions through intrusion detection systems, access control, and proactive software. Lighting and temperature control, audio/video systems, and smart speakers are popular categories. Compatibility issues persist, but modular kitchens, house batteries, high-power solar inverters, smart electrical panels, and EV chargers are driving innovation. IoT platforms and 5G technology enable IoT connections for standalone smart devices like cameras, smart lights, streaming devices, dishwashers, and more. Machine learning and artificial intelligence enhance functionality, while cyberattacks and security threats necessitate security measures. Semiconductors power these devices, reducing carbon emissions and offering smart features through smartphones and virtual assistants. 

The global smart home market is experiencing significant growth, attracting various vendors to form strategic partnerships for product development. In April 2022, Samsung Electronics collaborated with ABB Group, a leading power and automation technologies provider, to make Samsung SmartThings integration available in more homes and structures. This partnership is one of many examples of market participants joining forces to ensure interoperability and expand their reach in the growing smart home industry. 

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 Market Challenges

• The smart home market is experiencing rapid growth, driven by consumer demand for home monitoring, energy-saving, and convenience. The smart home industry offers solutions for safety and security through intrusion detection systems, access control, and smart surveillance systems. Lighting and temperature control, audio/video systems, and home automation are also popular. Challenges include compatibility issues with various IoT devices, proactive software, and behavioral versions. Modular kitchens, house batteries, high-power solar inverters, and smart electrical panels are essential for energy efficiency. Security threats from cyberattacks and theft require security measures. Standalone smart devices like smart speakers, cameras, and lights, as well as streaming devices, dishwashers, and smartphones, are common IoT connections. 5G technology and IoT platforms enable seamless connectivity. Machine learning and artificial intelligence enhance functionality. Semiconductors power smart features, while virtual assistants offer digital assistance. Blockchain ensures data security. Wi-Fi and Bluetooth enable seamless connectivity. Smart TVs and entertainment centers offer entertainment options. Smart thermostats, sprinkler systems, bulbs, meters, composters, power strips, and security cameras complete the smart home ecosystem.
• The global smart home market is experiencing significant growth, with vendors focusing on creating dependable home automation solutions for various applications, including energy management, lighting control systems, home entertainment, HVAC, smart appliances, and safety and security systems. To remain competitive, these vendors regularly upgrade their offerings. However, compatibility issues between smart home devices can negatively impact both customers and manufacturers. Some devices have encountered challenges with Wi-Fi connectivity, video feed, and video streaming. The absence of connectivity affects product performance, leading to video streaming problems.

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Segment Overview 

This smart home market report extensively covers market segmentation by  

1. Application 
• 1.1 Home entertainment
• 1.2 Smart appliances
• 1.3 Energy management
• 1.4 Lighting control system and HVAC
• 1.5 Safety and security system
2. Technology 
• 2.1 Wireless
• 2.2 Wired
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Home entertainment- The home entertainment segment dominates the global smart home market, driven by the widespread adoption of digital voice assistants or smart speakers. Google Home and Amazon Echo are leading the charge, offering user-friendly interfaces for controlling various smart home devices and providing entertainment and information. New product launches, such as Google's Nest Hub with a detachable tablet, expand the functionality of these devices and fuel market growth. In addition, smart TVs, equipped with advanced features like on-demand content, internet browsing, and voice control, are gaining popularity. Notable vendors like OnePlus Technology and Xiaomi continue to introduce innovative technologies, such as 4K displays and Dolby Atmos capabilities, to meet consumer demand. These advancements in smart home technology will continue to drive growth in the home entertainment segment during the forecast period.

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Research Analysis

The smart home market is experiencing rapid growth as more and more Internet users embrace the convenience, safety, and energy-saving benefits of IoT-connected devices. From home monitoring systems that allow real-time temperature and lighting control, to energy-efficient appliances like dishwashers and refrigerators, the smart home industry caters to various needs. Smart home systems include audio/video systems, intrusion detection, and security cameras, all controlled via smartphones or digital assistants using Bluetooth, Wi-Fi, or 5G technology. Machine learning and artificial intelligence are integral to these systems, enhancing their functionality and improving user experience. However, with the increasing number of IoT connections, cyberattacks and security threats are a growing concern. The integration of AI in cameras and smart lights, for instance, can help detect and deter intrusions, ensuring peace of mind for homeowners. Streaming devices and Bluetooth speakers are also popular additions to the smart home ecosystem, offering endless entertainment options.

Market Research Overview

The Smart Home Market is a rapidly growing industry focused on enhancing home living through technology. It offers home monitoring systems for safety and security, energy-saving solutions, and convenience features like lighting and temperature control. Smart home technology includes audio/video systems, intrusion detection and access control, home automation, and control systems. Lighting controllers and compatibility issues are being addressed with proactive software and behavioral versions. Modern kitchens integrate smart features like house batteries, high-power solar inverters, and smart electrical panels. EV chargers, connected electrical outlets, and light switches are becoming essential. Smart speakers, modular switches, and IoT devices are increasingly popular, with 5G technology enabling faster connectivity. Machine learning and artificial intelligence are driving innovation, with cyberattacks and security threats a growing concern. Standalone smart devices, such as cameras, smart lights, streaming devices, dishwashers, and smart TVs, offer enhanced functionality. Semiconductors are a crucial component, and smart thermostats, sprinkler systems, bulbs, smart meters, smart composters, and smart power strips are also part of this dynamic industry. Security cameras, Wi-Fi, Bluetooth, and smart surveillance systems ensure peace of mind for homeowners.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Home Entertainment
• Smart Appliances
• Energy Management
• Lighting Control System And HVAC
• Safety And Security System
• Technology
• Wireless
• Wired
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio