Smart Home Devices Market Size, Share, and Industry Analysis By Product (Lighting Control, Security & Access Control, Entertainment Devices, HVAC, Smart Kitchen Appliances, Home Appliances, and Others), By Application (New Construction and Retrofit), By Protocol (Wireless, Wired, and Hybrid), and Regional Forecast till 2032

The global smart home devices market is experiencing significant growth owing to increasing consumer demand for convenience, energy efficiency, and enhanced security. Integration with IoT technology enables seamless connectivity and control via smartphones and voice assistants. The rising awareness of sustainable living, coupled with technological advancements and declining device costs, further boosts adoption. Additionally, remote monitoring capabilities and growing smartphone ecosystems appeal to tech-savvy consumers, accelerating global market expansion.   

• According to the International Data Corporation (IDC), the global shipment of smart home devices is expected to grow by 4.4% to 931.1 million units in 2025.

Smart Home Devices Market Driver

Growing Demand for Energy Efficient and Cost Saving to Drive the Industry Expansion

Smart home devices, such as lighting systems, thermostats, and energy monitors, enable users to optimize energy consumption by automating and controlling usage remotely. With real-time data and usage insights, homeowners can reduce electricity wastage and lower utility bills. Moreover, increasing awareness about environmental sustainability prompts consumers to adopt economical energy solutions.

Governments and utility companies further support this trend by offering incentives and rebates for energy-saving devices. As energy costs rise globally, smart home technology becomes a practical investment, making it a significant factor in driving the market’s expansion.

Smart Home Devices Market Restraint

Privacy and Security Concerns May Hamper Market Growth 

One major restraint impeding the growth of the market is privacy and security concerns. Smart home devices collect vast amounts of user data, including personal preferences, behavioral patterns, and sensitive information. Cybersecurity threats, such as hacking and data breaches, pose significant risks, leading to consumer apprehension about adopting these technologies.

Inadequate encryption protocols and vulnerabilities in IoT networks further exacerbate these concerns. Additionally, regulatory gaps and inconsistent global data protection laws undermine consumer trust. Addressing these issues requires robust security frameworks, transparent data practices, and user education, without which market expansion remains constrained.

Smart Home Devices Market Opportunity

Integration with Artificial Intelligence (AI) to Open Up Numerous Growth Prospects

The integration of advanced AI technologies presents significant growth opportunities for market players. By incorporating AI-driven features, such as predictive analytics, natural language processing, and machine learning, smart home devices can offer personalized experiences and enhanced automation. For instance, AI-powered systems can learn user preferences to optimize energy usage, improve home security, and streamline daily tasks. This level of customization appeals to tech-savvy consumers and eco-conscious households, driving demand. Moreover, the increasing adoption of voice assistance such as Google Assistant, Alexa, and Siri accelerates the potential for AI-enhances smart home ecosystems.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of the Global Smart Home Devices Market
• Supply Chain & Regulatory Analysis
• SWOT Analysis
• Porter's Five Forces Analysis
• Recent Industry Advancement

Analysis by Product

Based on product, the market is divided into Lighting control, security & access control, entertainment devices, HVAC, smart kitchen appliances, home appliances, and others.

The security & access control segment holds a major market share. The growth of the segment is driven by the rising demand for smart security solutions and the necessity to permit authorized access to rooms or safes with valuable items. Advanced devices, such as security cameras and smart locks, help monitor and give access to only permitted individuals by incorporating custom PINs, live feed playback, fingerprint, scanners, and more. For instance, in September 2022, Amazon.com, Inc., introduced Ring Spotlight Cam Pro, 2nd Gen Ring Alarm Panic Button, and Ring Spotlight Cam Plus for security and access control purposes using 3D motion and radar detection features.

The entertainment devices segment is likely to grow at the fastest pace over the analysis period. This is due to rising consumer discretionary spending and the growing trend of modern-day home entertainment solutions.

Analysis by Application

Based on application, smart home devices are bifurcated into new construction and retrofit.

The retrofit segment dominates the market as many homeowners prefer to remodel and refurbish their existing homes by installing one or multiple smart products based on their budget. There is a rising trend of smart homes due to the easy product availability and convenience offered by these products, driving the growth of the retrofit segment.

Meanwhile, the new construction segment is projected to grow at the fastest CAGR over the analysis period mainly due to the ease of installing smart home devices at ongoing construction projects and the benefits provided by these smart solutions. Additionally, an increasing number of new residential construction projects around the globe is predicted to amplify the demand for smart home solutions, propelling to the segment growth.

Analysis by Protocols

Based on protocols, the market is segmented into wireless, wired, and hybrid.  

The wireless segment accounted for the highest market share and is projected to grow at the fastest CAGR over the analysis period. The growth of the segment is driven by its capabilities and features offered, such as connectivity regardless of location, mobile connectivity, and more. Manufacturers, as well as consumers, prefer protocols that enable smooth communication with less to no impact on battery life and range. For instance, the ZigBee protocol used in IoT devices such as light bulbs, sockets, plugs, motion sensors, and other home automation devices offers longer battery life as it operates on a low-duty cycle and lower latency for instant device-to-device communication.

The wired protocol segment is poised to grow at a considerable CAGR over the forecast period due to traditional products with built-in Ethernet or cable ports. These products often connect and help operate a hub of smart home devices at a central location. Fewer connectivity issues and the secureness of wires laid behind walls are driving trends for wired protocols.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America holds a dominant position in the global smart home device market. This is owing to its advanced infrastructure, early adoption of cutting-edge technology, and high disposable income coupled with a strong emphasis on energy efficiency and home automation.

The U.S. is a major contributor in the North American region, as smart devices form an integral part of their households. For instance, YouGov’s new report, “Connecting with Smart Home Adopters”, published in 2024, cited that around 65% of Americans own at least one smart home appliance or device, up from 51% in 2020. The report also highlights that products, including smart security (34%), smart light systems (25%), and smart home thermostats (25%) tops the list.

Asia Pacific is witnessing swift growth in the smart home device space and is likely to grow at the highest CAGR over the forecast period. The region's growth is ascribed to its improved standard of living and rising spending power. Moreover, the growing demand for reliable home energy management systems, the rising necessity for home security, and the growing popularity of integrating smart devices such as tablets, smartphones, and standalone voice assistants in homes are all leading the region's growth.

Europe smart home devices market is foreseen to record notable growth. High Gross Domestic Product (GDP), tech-savvy population, and favorable government initiatives for energy-efficient homes are supplementing the growth of the market. Besides, the presence of key market players in the region, such as Siemens, Schneider Electric SE, Robert Bosch GmbH, Legend, ABB, and others, strengthens the region's position in the global market.

Key Players Covered

The global smart home devices market is fragmented, with the presence of a significant number of well-established brands and domestic standalone providers

The report includes the profiles of the following key players:

• Siemens AG (Germany)
• Schneider Electric SE (France)
• Samsung Electronics Co., Ltd. (South Korea)
• Amazon.com, Inc. (U.S.)
• Google LLC (Google Nest) (U.S.)
• Honeywell International, Inc. (U.S.)
• Robert Bosch GmbH (Germany)
• Philips Lighting B.V. (Netherlands)
• Sony Corporation (Japan)
• ABB, Ltd. (Switzerland)

Key Industry Developments

• In January 2023, Schneider Electric, energy management and automation company acquired AVEVA plc to utilize latter’s advanced software capabilities and introduce modern automation solutions for residential, commercial, and building complexes. Through this acquisition, Schneider Electric is set to expand its home automation offering.
• In April 2022, Switzerland-based ABB, Ltd., announced a collaboration with Samsung Electronics, Co., Ltd., to broaden its home automation portfolio. This collaboration aimed at making it easy for consumers to lower costs and achieve a positive environmental impact.