Connected Homes Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 101.86 Billion
CAGR (2026-2031)	11.73%
Fastest Growing Segment	Light Control Solution
Largest Market	North America
Market Size (2031)	USD 198.16 Billion

Market Overview

The Global Connected Homes Market will grow from USD 101.86 Billion in 2025 to USD 198.16 Billion by 2031 at a 11.73% CAGR. The global connected homes market is defined by the integration of internet-enabled devices and appliances that automate and manage domestic functions, including lighting, climate regulation, entertainment, and security. The primary drivers fueling this sector include the escalating consumer demand for energy efficiency, the widespread availability of high-speed internet infrastructure, and a heightened emphasis on residential safety solutions. These fundamental factors provide a sustainable foundation for growth, distinct from temporary technological trends, as they address core utility and security needs for modern homeowners.

Despite this positive trajectory, the market faces a significant challenge regarding interoperability and data privacy concerns, which can complicate user adoption and impede seamless ecosystem integration. However, the financial outlook remains robust within the professional sector. According to CEDIA, in 2024, the professional smart home industry is predicted to experience a 30% average growth rate across categories as the sector approaches a valuation of $30 billion. This data underscores the resilience of the market despite facing technical and security-related hurdles.

Key Market Drivers

The integration of Artificial Intelligence (AI) and voice-activated smart assistants is a primary catalyst reshifting the Global Connected Homes Market from passive remote control to predictive automation. AI algorithms now analyze user behavior patterns to optimize device performance, managing complex ecosystems of appliances with minimal human intervention. This shift towards intelligent, proactive living is driving substantial user adoption in key markets. According to Samsung Electronics, December 2024, in the 'Samsung SmartThings hits 20 million users in South Korea' announcement, the platform's registered user base in South Korea surpassed 20 million, a milestone largely attributed to the rapid uptake of AI-enabled home appliances. By reducing the cognitive load on consumers through automated decision-making, AI serves as the central nervous system that binds disparate devices into a cohesive, value-driven smart home experience.

Simultaneously, the Heightened Focus on Advanced Home Security is emerging as a critical driver, necessitated by the expanding attack surface of interconnected domiciles. As homes become saturated with internet-enabled endpoints, from cameras to utility infrastructure, the demand for sophisticated threat detection and encrypted surveillance systems has intensified. This urgency is reflected in the escalating threat landscape; according to SonicWall, February 2025, in the '2025 Annual Cyber Threat Report', Internet of Things (IoT) attacks increased by 124% in 2024, underscoring the vital need for robust security protocols. This focus extends beyond theft prevention to protecting core utility data, as evidenced by the scale of deployed infrastructure; according to the Department for Energy Security and Net Zero, March 2025, in the 'Smart Meter Statistics in Great Britain: Quarterly Report to end December 2024', there were 38 million smart and advanced meters operating in Great Britain, all of which require rigorous security standards to maintain market trust.

Download Free Sample Report

Key Market Challenges

Based on the provided overview, the challenging factors impeding the "Global Connected Homes Market" are interoperability and data privacy concerns.

The seamless integration of devices is critical for market expansion, yet the lack of standardized communication protocols between different manufacturers creates a fragmented ecosystem. This interoperability issue forces consumers to navigate disjointed applications and incompatible hardware, which significantly diminishes the user experience and discourages mass adoption. Furthermore, as households add more internet-enabled appliances, the potential attack surface for cyber threats widens, intensifying consumer apprehension regarding data privacy and the security of their personal information. When users cannot trust that their sensitive domestic data is secure or that their devices will function cohesively, they are less likely to invest in comprehensive smart home systems.

This hesitation is exacerbated by the sheer magnitude of the ecosystem, which continues to expand rapidly with new market entrants and devices. The complexity of this environment is highlighted by the scale of industry collaboration required to address it. According to the Connectivity Standards Alliance, in 2024, the organization comprised over 695 member companies globally. This extensive number of distinct manufacturers and technology developers underscores the difficulty of achieving universal compatibility and robust security standards across such a diverse and crowded marketplace.

Key Market Trends

The Expansion of Smart Energy Management and Grid Independence is reshaping the market as consumers increasingly prioritize resilience against power outages and rising utility instability. This trend transcends basic thermostat adjustments, moving toward comprehensive ecosystems where solar arrays, battery storage, and backup generators are orchestrated to maintain off-grid functionality and optimize consumption. According to Generac Holdings, October 2024, in the 'Third Quarter 2024 Results' report, residential product sales increased 28% to $723 million, driven largely by heightened demand for home standby generators and energy technology solutions. This surge reflects a structural shift where homeowners are actively investing in infrastructure that ensures continuity and optimizes power usage independent of the central grid, effectively transforming residences into decentralized energy hubs.

The Proliferation of Subscription-Based Smart Home Services is fundamentally altering the industry's revenue model from one-time hardware purchases to recurring value streams. Manufacturers are increasingly decoupling advanced features—such as cloud video storage, AI-driven insights, and professional monitoring—from the physical device to ensure long-term profitability and deeper user engagement. This strategic pivot is evident in the financial performance of key platform providers; according to Alarm.com, November 2024, in the 'Third Quarter 2024 Results' press release, SaaS and license revenue increased 9.8% to $159.3 million, highlighting the growing consumer willingness to pay for ongoing, intelligent service layers. This transition not only stabilizes revenue for companies but also ensures that connected systems remain continuously updated against evolving technological requirements.

Segmental Insights

The Light Control Solution segment is recognized as the fastest-growing category within the Global Connected Homes Market, primarily driven by the escalating global demand for energy-efficient residential infrastructure. This rapid expansion is supported by stringent government regulations and green building standards aimed at reducing electricity consumption and carbon footprints. Homeowners are increasingly adopting these automated systems to optimize energy usage and lower utility expenses while benefiting from enhanced security features. Furthermore, the seamless integration of lighting controls with centralized home management platforms continues to accelerate widespread adoption across the residential sector.

Regional Insights

North America commands the Global Connected Homes Market due to the early and widespread integration of home automation technologies. The region benefits from a high concentration of market leaders and substantial consumer purchasing power, which drives the uptake of smart devices. Extensive broadband infrastructure supports the functionality of these systems, while the Federal Communications Commission ensures the necessary wireless spectrum allocation for reliable device connectivity. Furthermore, the rising consumer prioritization of home security and energy management reinforces the continued expansion and dominance of the North American market.

Recent Developments

In November 2025, IKEA introduced a comprehensive new range of 21 smart home products designed to be fully compatible with the Matter connectivity standard. The product line included the "KAJPLATS" series of smart lighting with various dimming options, alongside a suite of sensors for monitoring motion, air quality, and water leakage, such as the "MYGGSPRAY" and "ALPSTUGA" models. Additionally, the company launched "BILRESA" remote controls and the "GRILLPLATS" smart plug, enabling users to integrate standard appliances into their connected home networks. This release marked a strategic rebuilding of IKEA’s smart home ecosystem, focusing on interoperability and mass-market accessibility.
In September 2024, Schneider Electric launched an industry-first AI-powered home energy management feature within its "Wiser Home" application. This new capability enabled the automated optimization of heavy energy loads, such as electric vehicle chargers and water heaters, by leveraging artificial intelligence to analyze real-time data. The system integrated weather forecasts, energy tariff information, and solar production levels to shift power usage to the most cost-effective times. Initially released in select European markets, this innovation aimed to reduce energy bills and carbon footprints by maximizing the efficiency of residential renewable energy integration through a unified smart home interface.
In August 2024, Google expanded its presence in the Global Connected Homes Market by launching the fourth-generation Nest Learning Thermostat and the Google TV Streamer. The new thermostat featured a redesigned domed crystal display and utilized advanced AI to create energy-saving schedules based on user behavior and weather conditions. Concurrently, the Google TV Streamer was introduced as a next-generation entertainment device that functioned as a smart home hub, supporting both Matter and Thread protocols for improved interoperability. These products leveraged Gemini artificial intelligence models to deliver more precise security camera notifications and personalized automation suggestions for homeowners.
In January 2024, Samsung Electronics announced a strategic collaboration with Tesla to integrate SmartThings Energy with Tesla’s residential energy products, including Powerwall home batteries, solar inverters, and electric vehicles. This partnership allowed homeowners to monitor and manage their energy generation, storage, and usage directly through the SmartThings app on connected Samsung devices. A key feature enabled the synchronization of Tesla’s "Storm Watch" alerts with Samsung TVs and smartphones, allowing users to automatically prepare for power outages by activating AI Energy Mode. This initiative aimed to enhance the connectivity between electric vehicle charging and residential energy management systems.

Key Market Players

Amazon Inc.
Google LLC
Apple Inc.
Samsung Electronics Co., Ltd.
Honeywell International Inc.
Bosch Security Systems Inc.
LG Electronics Inc.
NEST Labs, Inc.
Xiaomi Corporation
Arlo Technologies, Inc.
Ring LLC
Schneider Electric SE

By Functionality	By Component	By Platform	By Region
Energy and Utilities Management Smart Entertainment Wellness and Monitoring Security and Safety Smart Appliance	Light Control Solution Security Solution Entertainment Solution Home Healthcare Solution Energy Management Solution	Smartphones Laptops Home Gateway Other	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Connected Homes Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Connected Homes Market, By Functionality:

Energy and Utilities Management
Smart Entertainment
Wellness and Monitoring
Security and Safety
Smart Appliance

Connected Homes Market, By Component:

Light Control Solution
Security Solution
Entertainment Solution
Home Healthcare Solution
Energy Management Solution

Connected Homes Market, By Platform:

Smartphones
Laptops
Home Gateway
Other

Connected Homes Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Connected Homes Market.

Available Customizations:

Global Connected Homes Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Connected Homes Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Connected Homes Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Functionality (Energy and Utilities Management, Smart Entertainment, Wellness and Monitoring, Security and Safety, Smart Appliance)

5.2.2. By Component (Light Control Solution, Security Solution, Entertainment Solution, Home Healthcare Solution, Energy Management Solution)

5.2.3. By Platform (Smartphones, Laptops, Home Gateway, Other)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Connected Homes Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Functionality

6.2.2. By Component

6.2.3. By Platform

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Connected Homes Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Functionality

6.3.1.2.2. By Component

6.3.1.2.3. By Platform

6.3.2. Canada Connected Homes Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Functionality

6.3.2.2.2. By Component

6.3.2.2.3. By Platform

6.3.3. Mexico Connected Homes Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Functionality

6.3.3.2.2. By Component

6.3.3.2.3. By Platform

7. Europe Connected Homes Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Functionality

7.2.2. By Component

7.2.3. By Platform

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Connected Homes Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Functionality

7.3.1.2.2. By Component

7.3.1.2.3. By Platform

7.3.2. France Connected Homes Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Functionality

7.3.2.2.2. By Component

7.3.2.2.3. By Platform

7.3.3. United Kingdom Connected Homes Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Functionality

7.3.3.2.2. By Component

7.3.3.2.3. By Platform

7.3.4. Italy Connected Homes Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Functionality

7.3.4.2.2. By Component

7.3.4.2.3. By Platform

7.3.5. Spain Connected Homes Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Functionality

7.3.5.2.2. By Component

7.3.5.2.3. By Platform

8. Asia Pacific Connected Homes Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Functionality

8.2.2. By Component

8.2.3. By Platform

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Connected Homes Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Functionality

8.3.1.2.2. By Component

8.3.1.2.3. By Platform

8.3.2. India Connected Homes Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Functionality

8.3.2.2.2. By Component

8.3.2.2.3. By Platform

8.3.3. Japan Connected Homes Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Functionality

8.3.3.2.2. By Component

8.3.3.2.3. By Platform

8.3.4. South Korea Connected Homes Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Functionality

8.3.4.2.2. By Component

8.3.4.2.3. By Platform

8.3.5. Australia Connected Homes Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Functionality

8.3.5.2.2. By Component

8.3.5.2.3. By Platform

9. Middle East & Africa Connected Homes Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Functionality

9.2.2. By Component

9.2.3. By Platform

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Connected Homes Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Functionality

9.3.1.2.2. By Component

9.3.1.2.3. By Platform

9.3.2. UAE Connected Homes Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Functionality

9.3.2.2.2. By Component

9.3.2.2.3. By Platform

9.3.3. South Africa Connected Homes Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Functionality

9.3.3.2.2. By Component

9.3.3.2.3. By Platform

10. South America Connected Homes Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Functionality

10.2.2. By Component

10.2.3. By Platform

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Connected Homes Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Functionality

10.3.1.2.2. By Component

10.3.1.2.3. By Platform

10.3.2. Colombia Connected Homes Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Functionality

10.3.2.2.2. By Component

10.3.2.2.3. By Platform

10.3.3. Argentina Connected Homes Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Functionality

10.3.3.2.2. By Component

10.3.3.2.3. By Platform

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Connected Homes Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Amazon Inc.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Google LLC

15.3. Apple Inc.

15.4. Samsung Electronics Co., Ltd.

15.5. Honeywell International Inc.

15.6. Bosch Security Systems Inc.

15.7. LG Electronics Inc.

15.8. NEST Labs, Inc.

15.9. Xiaomi Corporation

15.10. Arlo Technologies, Inc.

15.11. Ring LLC

15.12. Schneider Electric SE

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Connected Homes Market in 2025?

Which is the dominating region in the Global Connected Homes Market?

Which is the fastest growing segment in the Global Connected Homes Market?

What is the expected growth rate of the Global Connected Homes Market?