Smart Home Market is Expected to Reach a Valuation of USD 633.20 Billion by 2032; Implementation of Advanced Technologies in Smart Homes Fuels Market Expansion

The global smart home market size was valued at USD 121.59 billion in 2024. The market is estimated to grow from USD 147.52 billion in 2025 to USD 633.20 billion by 2032, with a CAGR of 23.1% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Smart Home Market Size, Share & Industry Analysis, By Application (Retrofit and New Construction), By Protocol (Wired and Wireless), By Device Type (Safety & Security Access Control, Home Appliances, HVAC, Lighting Control, Smart Entertainment Devices, Smart Kitchen Appliances, and Others), and Regional Forecast, 2025 – 2032”.

Smart homes utilize remotely controlled devices to manage various aspects of a residence, such as lighting, temperature, and security, offering benefits such as energy efficiency, convenience, and personalized experiences. This automation provides benefits such as energy savings and increased convenience. Leading companies in this space, including ABB, Alphabet, Samsung, and Emerson, are actively pursuing strategic partnerships and acquisitions to capitalize on this significant market growth.

Convergence of Generative AI is Creating Significant Opportunities for Innovation and Growth

Gen-AI’s ability to generate text, images, and sounds has rapidly advanced, enhancing efficiency and adaptability across various sectors. The emergence of tools such as ChatGPT, Google Bard, and Amazon LLM is positively shaping technologies and fueling the smart home market growth. Integrating Gen-AI into smart home ecosystems holds the potential to make daily life more effective, convenient, and enjoyable.

LIFX Presented a New Smart Lighting Solutions to Drive Market Growth

In January 2025, smart lighting innovator LIFX partnered up with Feit Electric to unveil four new lighting products at CES. Their joint offerings, ranging from the Katalyst collection and Feit’s Vista Skylight LED Fixtures to the Luna Smart Lamp and LIFX’s futuristic smart oval supercolor ceiling light, promise exceptional customization, versatility, and simplicity, and will be available at The Home Depot.

Technological Advancements in Home Solutions is Fueling Market Growth

Cutting-edge technologies are significantly shaping the smart home industry by enabling interconnected devices to communicate seamlessly. This integration allows for effortless control and automation of various home functions such as lighting, temperature regulation, security, and appliance management. Companies are developing new smart home solutions by incorporating these advanced technologies.

However, the increasing number of cyberattacks targeting advanced connected technologies poses a significant threat to market growth. As smart technology integrates with home systems and devices, it becomes susceptible to hacking if not properly secured.

Product Upgrades and Innovation by Leading Companies Drive Market Expansion

Leading companies in the market are continually enhancing their existing offerings and developing innovative solutions to broaden their reach and better serve customer demands. By expanding and diversifying their product portfolios, these players strengthen their market presence and competitive edge.

Key Players Profiled in the Report:

• Honeywell International, Inc. (U.S.)
• ABB (Switzerland)
• Johnson Controls International plc (Ireland)
• Siemens (Germany)
• Alphabet, Inc. (U.S.)
• Emerson (U.S.)
• Robert Bosch Smart HomeGmbH (Germany)
• Samsung (South Korea)
• LG Electronics (South Korea)
• Crestron Electronics, Inc. (U.S.)
• Apple, Inc. (U.S.)
• Ecobee (Canada)
• Schneider Electric (France)
• Vivint, LLC (U.S.)
• Fantasia Trading LLC (U.S.)
• Snap One, LLC (U.S.)
• Govee (China)
• Xiaomi (China)
• Signify Holdings (Netherlands)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/smart-home-market-101900

Key Industry Development:

• March 2025 – ZTE Corporation introduced a new line of home networking products at MWC Barcelona. This new portfolio features cutting-edge devices such as a next-generation 4K AI Soundbar, high-performance LinkPro Wi-Fi 7 BE9400/BE6500, and an AI-powered home media center. These products are integrated with AI screen FTTR RoomPON 6.0 and managed through the ZENIC ONE intelligent platform.

Further Report Findings:

• By application, the retrofit segment held the leading market share in 2024 due to the growing implementation of energy-efficient devices and renewable energy sources by homeowners, including solar-panel to reduce energy consumption and promote sustainable living.
• North America holds the major smart home market share in 2024, driven by the strong presence of major players such as Honeywell International Ltd, Snap One LLC, Creston Corporation, and others. These companies are leveraging strategies, including acquisitions and product launches, to attract a broader customer base.
• Market growth in Europe is attributed to the rising number of IoT services, government initiatives, and integrations of various technologies such as Artificial Intelligence and Machine Learning.

Table of Segmentation