Smart home market trends 2024

General smart home market statistics

Smart homes offer the appeal of convenience paired with increased security and safety — 51% of consumers considering smart home devices cite safety as the top reason for purchase.

• Almost half of U.S. households will adopt smart home devices, including lighting, thermostats and security, by 2026.
• The number of global smart home device shipments will approach 1.25 billion by 2026. Video entertainment and home security devices combined will make up nearly 49% of all such shipments.
• The total smart home device shipment market compound annual growth rate (CAGR) will reach an average of 8.6% in 2026, with smart lighting devices responsible for the highest growth.
• The most popular smart home devices in terms of consumer use are smart entertainment systems (49%), smart thermostats (49%), smart doorbells (43%) and smart security cameras (40%).
• Of the 42% of Americans with plans to invest in a smart home in the next two years, 40% were millennials.

Smart home market size

The U.S. smart home market will be worth $38.8 billion by the end of 2024 and could hit a market value of $55 billion by 2028. In terms of market penetration, the number of U.S. households with smart home devices hit 55.7 million in 2023 and is projected to reach nearly 63 million by 2027. While the number of smart homes is increasing, the share of smart homes in the U.S. has plateaued at about 42% in 2023 and 2024 but will gradually approach 46% by 2027. This indicates that smart homes will increase in number, likely to match population increases, but may not see rapid widespread growth in the near future.

Smart home market segmentation, by state

Smart homes in the U.S. cost an average of $823,740, and smart homes in certain cities can run more than twice as much as non-smart homes. Geographic disparities may stem from cost of living or simple market demand. For example, tech-centric cities such as Los Angeles, New York City and Fort Worth have the highest number of smart homes listings, while smaller metro areas such as Laredo, TX; Stockton, CA; and Milwaukee, WI, had the lowest share of smart home listings.

Generally, there is no correlation between the share of smart home listings and the pricing of smart homes themselves. The only exception to this being Los Angeles, which is the No. 1 city for smart home availability and price. But the overall high cost of housing in California means that smart homes within the state will be even more expensive than standard non-smart homes. This indicates that cities with the highest smart home prices generally correlate with cities with expensive housing costs.

Smart home adoption rate

U.S. smart home adoption rates have been hovering around 42% of the population since 2021 and will continue to do so through 2024. However, smart home market penetration will pick up from 2025 to 2027, increasing from 43.3% to 46%. The total number of smart homes will also increase by over 7 million, from 55.7 million in 2023 to 62.9 million in 2027.

Smart homes market future outlook

The smart home market as a whole is set to expand from $34.7 billion in revenue in 2023 to $55 billion in 2028. When examined by each type of smart home device, smart appliances and control and connectivity are driving the majority of the revenue, on track to make up $31.5 billion of the total $55 billion in 2028. However, energy management smart home devices will see the largest growth rate, with that subset of the market growing 77% from 2023 to 2028. While most other smart home device revenues will grow consistently, the home entertainment smart home device market will lag, only increasing about 14% by 2028.

Best smart home systems

Smart home security systems allow homeowners to integrate door locks, lighting fixtures and security alarms to home ecosystems and control them through an app. Most smart home packages allow the option to add additional features, including video doorbells, security cameras, thermostats, speakers, plugs and smoke detectors, to provide a seamless home system. There are four popular smart home security system brands, each offering different selling points:

• ADT
  • Compatible with Amazon Alexa, Google Home, Nest and Samsung devices
  • Offers professional installation
  • Twelve monitoring centers across North America, meaning that if there are power outages in one area, other centers can monitor issues
• Vivint
  • Compatible with Google Home, Amazon Echo and Nest devices
  • Offers professional installation
  • Offers Car Guard smart device addition, which notifies homeowners if their car has been damaged or tampered with
• Link Interactive
  • Compatible with Google Home, Amazon Alexa and Z-Wave Plus
  • Offers DIY home installation
  • Offers a variety of smart home hubs, from a basic touch-screen to one central monitoring hub
  • Companion app to set up automations and schedules, control smart devices and check video feeds
• Abode
  • Integrates with Apple HomeKit and compatible with Amazon Alexa and Google Home devices
  • Offers professional and DIY home installation

References

1. ”Smart Home IoT 2023.” EMarketer. Evaluated April 4, 2024.Link Here
2. ”ENERGY STAR Smart Thermostats FAQs for EEPS.” Energy Star. Evaluated April 4, 2024.Link Here
3. ”US Smart Homes Market Report 2023.” Mintel. Evaluated April 4, 2024.Link Here
4. ”Smart lighting, security drive increase in smart home device adoption.” EMarketer. Evaluated April 4, 2024.Link Here
5. ”Smart Home - United States.” Statista. Evaluated April 4, 2024.Link Here
6. ”The State of the Smart Home Market in America.” Vivint. Evaluated April 4, 2024.Link Here
7. “How Much Does a Smart Home Cost?” HomeAdvisor. Evaluated April 4, 2024.Link Here