Smart Home Devices Market Report 2025

The smart home devices market size has grown rapidly in recent years. It will grow from $126.22 billion in 2024 to $147.62 billion in 2025 at a compound annual growth rate (CAGR) of 17%. The growth in the historic period can be attributed to consumer convenience and automation, security and surveillance needs, energy efficiency and cost savings, aging population and accessibility, integration with mobile devices.

The smart home devices market size is expected to see rapid growth in the next few years. It will grow to $292.36 billion in 2029 at a compound annual growth rate (CAGR) of 18.6%. The growth in the forecast period can be attributed to health and wellness monitoring, smart home ecosystem integration, environmental sustainability, voice-activated and ai-powered devices, affordability and mass market appeal. Major trends in the forecast period include customization and personalization features for users, smart home security and surveillance innovation, integration of augmented reality (AR) and virtual reality (VR), enhanced privacy measures, rise of subscription-based business models.

The rise in urbanization is anticipated to drive the growth of the smart home devices market in the future. Urbanization refers to the increasing concentration of populations in urban areas, marked by the expansion of cities and towns alongside social, economic, and infrastructural transformations. Smart home devices not only improve convenience and energy efficiency for urban dwellers but also foster sustainable urbanization by optimizing resource usage, minimizing carbon footprints, and creating smarter living environments that can adapt to the needs of densely populated areas. For example, in January 2022, the United States Department of Commerce, a U.S.-based executive department, reported that the population in the U.S. reached 332,403,650 in 2022, reflecting a 0.21% increase from 2021. Therefore, the rise in urbanization is fueling the growth of the smart home devices market.

The growing number of IoT-connected devices in buildings is projected to boost the smart home device market moving forward. IoT (Internet of Things) connected devices in buildings encompass various physical objects or systems equipped with sensors, software, and communication capabilities, enabling them to collect and exchange data with one another and centralized systems via the internet. Smart home devices represent a subset of these IoT-connected devices, aimed at enhancing residential living. They offer convenience, automation, and data-driven insights that improve homeowners' quality of life while contributing to the wider IoT ecosystem through data sharing and interoperability. For instance, in March 2023, Ericsson, a Sweden-based telecommunications company, noted that the number of IoT connections reached 13.2 billion in 2022 and is expected to grow to 34.7 billion.

The growth of the smart home device market is hampered by high switching costs. The expense associated with smart appliances, including upfront costs such as installation and maintenance, poses a barrier to adoption for both consumers and organizations. According to a 2021 survey by Parks Association, 44% of 46.7 million households surveyed stated that smart devices are perceived as too expensive. For instance, in the USA, a smart thermostat costs around $250, while a traditional thermostat is priced at approximately $25. This cost factor negatively impacts the market by impeding widespread adoption.

Companies are actively developing voice assistants for the management of smart home devices. These digital assistants respond to voice commands and provide relevant information, distinguishing themselves from traditional keyboard-based searches. They emphasize conversational phrasing and prioritize long-tail keywords for searches. For example, both Amazon and Google have introduced voice assistants for their respective smart speakers. Amazon's Echo smart speaker features the Alexa Voice Assistant, while Google's Google Home smart speaker is equipped with the 'Google Assistant' voice assistant.

Major players in the smart home devices market are strategically incorporating generative artificial intelligence into their products to optimize market revenues. Generative AI enhances user experiences by facilitating natural language interactions, personalized content, automation, and real-time data analysis. In September 2023, Amazon.com Inc., a US-based technology company, introduced generative AI for its voice assistant Alexa, incorporating user personal context such as favorite foods, shows, music, and games. This innovation is positioned as suitable for various settings, including voice, attractions, and homes with individuals of all ages.

In June 2023, ABB Ltd. (Asea Brown Boveri), a technology company based in Switzerland, acquired Eve Systems GmbH for an undisclosed amount. This acquisition is intended to bolster ABB Ltd.'s smart building portfolio by incorporating Eve Systems GmbH’s advanced, Apple HomeKit-compatible smart home devices and privacy-focused technology. This integration will enhance ABB’s capability to offer innovative, energy-efficient, and secure solutions for smart home and building automation. Eve Systems GmbH is a company located in Munich that specializes in manufacturing smart home products.

Major companies operating in the smart home devices market include Amazon.com Inc., Apple Inc., Alphabet Inc., Google LLC, Sony Corporation, Siemens AG, LG Electronics Inc., Panasonic Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd, Johnson Controls International plc, Whirlpool Corporation, Emerson Electric Corporation, Koninklijke Philips N.V., BSH Hausgeräte GmbH, Delta Electronics Inc., Legrand S.A., ADT Inc., Hubbell Incorporated, Vivint Smart Home Inc., Axis Communications AB, Crestron Electronics Inc., Lutron Electronics Co. Inc., Ring LLC, SnapAV, Nest Labs Inc.

Smart home devices refer to devices that can be remotely controlled from any internet-connected location worldwide using a mobile or other network device. These interconnected smart home appliances provide users with access to control functions such as home security checks, temperature adjustments, lighting controls, and home theater settings.

The technologies employed in smart home devices include Wi-Fi technology and Bluetooth technology. Wi-Fi technology is a wireless technology that links computers, tablets, smartphones, and other devices to the internet. This involves the transmission of a radio signal from a wireless router to a nearby device, which then converts the signal into usable data. Smart home devices find applications in energy management, climate control systems, healthcare systems, home entertainment systems, lighting control systems, and security and access control systems. These devices are available for purchase through both online and offline channels.

The smart homes devices market research report is one of a series of new reports that provides smart homes devices market statistics, including smart homes devices industry global market size, regional shares, competitors with the devices of a smart home market share, detailed smart homes devices market segments, market trends and opportunities, and any further data you may need to thrive in the smart homes devices industry. This smart home devices market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Asia-Pacific was the largest region in the smart home devices market in 2024. The regions covered in the smart home devices market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart home devices market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart home devices market consists of sales of smart dishwashers, smart cookware and cooktops, smart ovens, smart refrigerators, and other smart home devices. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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