Smart Connected Devices Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Smartphones, Smart Watch, Smart Glasses, Wireless Printers, Smart Meters, Smart Cameras, Connected Bulbs, Smart Locks, Others), By End User (Industrial, Commercial, Residential), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 27.68 Billion
CAGR (2026-2031)	27.46%
Fastest Growing Segment	Commercial
Largest Market	North America
Market Size (2031)	USD 118.70 Billion

Market Overview

The Global Smart Connected Devices Market will grow from USD 27.68 Billion in 2025 to USD 118.70 Billion by 2031 at a 27.46% CAGR. Smart connected devices are electronic instruments, including smartphones, wearables, and IoT sensors, that utilize wireless protocols such as Wi-Fi, 5G, and Bluetooth to interact with networks and exchange data autonomously. The market is primarily supported by the extensive proliferation of high-speed internet infrastructure and the increasing necessity for automation across residential and commercial sectors, which collectively enhance operational efficiency and user connectivity. According to the International Telecommunication Union, in 2024, approximately 5.5 billion people globally were using the internet, representing 68 percent of the world population and highlighting the widening connectivity foundation critical for the adoption of these technologies.

However, a significant challenge that could impede market expansion is the escalating concern regarding data privacy and cybersecurity vulnerabilities. As these devices continuously collect and transmit sensitive personal and operational information, the heightened potential for data breaches and malicious attacks fosters consumer apprehension and invites stringent regulatory interventions, which may collectively slow the pace of deployment and acceptance globally.

Key Market Drivers

The rapid expansion of 5G and high-speed network infrastructure acts as a primary catalyst for the Global Smart Connected Devices Market, fundamentally enhancing the capabilities of autonomous systems and mobile electronics. This superior connectivity framework enables ultra-low latency and massive machine-type communications, allowing devices to exchange complex data streams in real-time without performance bottlenecks. Such infrastructure is indispensable for bandwidth-intensive applications like autonomous driving and immersive augmented reality, providing the critical backbone necessary for manufacturers to deploy increasingly sophisticated hardware. According to Ericsson, November 2024, in the 'Mobility Report', global 5G subscriptions were expected to reach close to 2.3 billion by the end of 2024, accounting for approximately 25 percent of all mobile subscriptions and highlighting the aggressive migration toward these advanced network standards.

Concurrently, the accelerated adoption of Internet of Things (IoT) ecosystems is driving market momentum by shifting consumer and industrial focus from standalone products to integrated, interoperable networks. This trend is visible across sectors, from smart home automation to industrial manufacturing, where devices communicate seamlessly to optimize workflows and energy usage. According to GSMA Intelligence, December 2024, in the 'IoT market forecast to 2030', the global IoT market is projected to expand significantly, reaching 38.7 billion connections by 2030. This proliferation of connected endpoints underscores the growing reliance on digital ecosystems for operational efficiency. Furthermore, the immense scale of this sector is reflected in its financial impact; according to the GSMA, in 2024, mobile technologies and services were reported to have generated $5.7 trillion of economic value added globally during the preceding year.

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Key Market Challenges

Based on the provided overview, the escalating concern regarding data privacy and cybersecurity vulnerabilities stands out as the primary challenge hindering the growth of the Global Smart Connected Devices Market. As these instruments increasingly manage sensitive personal and operational data, they create a vast and accessible attack surface for malicious actors. This inherent risk significantly erodes consumer trust and corporate confidence, causing potential buyers to hesitate or delay adoption due to fears of data breaches and unauthorized surveillance.

The market's expansion is further restricted by the industry's struggle to transparently address these security flaws. According to the IoT Security Foundation, in 2024, approximately 64 percent of global consumer IoT manufacturers lacked a vulnerability disclosure policy, leaving a majority of devices without a formal mechanism for reporting and resolving security defects. This widespread opacity not only amplifies user apprehension but also invites stringent regulatory interventions. Consequently, manufacturers must navigate complex compliance landscapes and potential legal liabilities, resulting in slowed deployment cycles and increased operational costs that collectively impede the market's upward trajectory.

Key Market Trends

The Emergence of Direct-to-Device Satellite Connectivity is creating a ubiquitous coverage layer extending beyond terrestrial towers, fundamentally altering how hardware maintains access in remote environments. By utilizing Non-Terrestrial Networks (NTN) integrated directly into standard mobile chipsets, this trend enables ordinary smartphones to maintain connectivity in geographic areas where building traditional infrastructure is economically unviable. This development is driving a convergence between the telecom and aerospace sectors, fostering new service models for emergency communication and continuous IoT tracking without requiring specialized satellite equipment. According to the GSMA, September 2025, in the 'Guidance to Support New Direct-to-Device Satellite Services' press release, the organization convened a specialized spectrum task force bringing together over 50 mobile and satellite operators to establish best practices for this rapidly converging ecosystem.

The Adoption of the Matter Smart Home Interoperability Standard is simultaneously resolving the industry's long-standing fragmentation by establishing a unified, IP-based language for connected devices. This open-source protocol allows disparate systems—from lighting to HVAC controls—to communicate locally and securely without relying on proprietary cloud-to-cloud bridges, thereby reducing latency and enhancing operational reliability. Manufacturers are increasingly prioritizing this certification to ensure their products function seamlessly within mixed-vendor environments, creating a more cohesive user experience. According to the Connectivity Standards Alliance, August 2025, in the 'Matter 1.4.2 Specification' release, the updated standard mandated that network infrastructure managers must support addressing for at least 150 devices, a requirement designed to accommodate the growing density of smart endpoints in modern residential deployments.

Segmental Insights

The Commercial segment is positioned as the fastest-growing category within the Global Smart Connected Devices Market. This rapid expansion is driven by the widespread implementation of digital transformation initiatives and the increasing necessity for remote operational capabilities across enterprises. Corporations are actively deploying connected endpoints, including tablets and Internet of Things hardware, to enhance workforce mobility and streamline supply chain management. Additionally, the integration of high-speed connectivity allows businesses to utilize real-time data analytics for improved decision-making. These factors collectively impel the sustained demand for commercial-grade connected devices in the current business environment.

Regional Insights

North America leads the global smart connected devices market due to the extensive availability of high-speed internet infrastructure and early technology adoption by consumers and enterprises. The strong presence of major market players in the United States fosters continuous product development and distribution. Additionally, favorable policies from the Federal Communications Commission regarding network spectrums enable reliable connectivity, which is critical for device performance. This cohesive ecosystem of supportive regulation, advanced telecommunications framework, and high purchasing power allows the region to sustain its dominant market share.

Recent Developments

• In August 2024, a leading American technology company launched its Pixel 9 smartphone series, including a new foldable model, at a dedicated hardware event. Powered by the custom Tensor G4 silicon, these devices were designed to run the Gemini Nano multimodal AI model directly on the hardware. The launch introduced innovative AI-driven capabilities such as "Add Me" for group photos and a dedicated screenshot app that retrieves information from saved images. This release underscored the company's commitment to the smart connected devices market by unifying advanced hardware with deeply integrated, on-device generative artificial intelligence features.
• In May 2024, a major software corporation and a semiconductor innovator collaborated to unveil "Copilot+ PCs," a new class of intelligent Windows computers. Powered by the Snapdragon X Elite and Plus platforms, these devices feature dedicated neural processing units capable of 45 trillion operations per second to handle complex AI workloads locally. The partnership aims to deliver multi-day battery life and unique experiences, such as the "Recall" feature for retrieving past workflows. This collaboration marks a breakthrough in the smart connected devices market, effectively shifting heavy AI processing from the cloud directly to edge computing devices like personal laptops.
• In February 2024, a Cupertino-based technology leader released the Apple Vision Pro, its inaugural spatial computer, in the US market. This advanced mixed-reality headset seamlessly blends digital content with the physical environment, controlled entirely by the user's eyes, hands, and voice. Featuring a high-resolution micro-OLED display system and a dual-chip design with proprietary processors, the device processes inputs with virtually no lag. The launch represents a significant expansion in the wearable smart connected devices sector, offering immersive experiences for spatial computing, entertainment, and professional collaboration without the need for traditional hardware controllers.
• In January 2024, a prominent South Korean electronics manufacturer launched its Galaxy S24 flagship smartphone series at a global event in San Jose. The new lineup introduced a suite of on-device artificial intelligence features marketed as "Galaxy AI," which includes real-time voice translation for phone calls and generative photo editing tools. Additionally, the devices feature an intuitive "Circle to Search" function developed in partnership with a search giant. The company also committed to seven years of security and operating system updates, signaling a strategic shift toward long-term software support and deep AI integration within the smart connected devices market.

Key Market Players

• Samsung Electronics Co., Ltd.
• Apple Inc.
• Huawei Technologies Co., Ltd.
• Xiaomi Corporation
• Sony Corporation
• LG Electronics Inc.
• Panasonic Corporation
• Koninklijke Philips N.V.
• Robert Bosch GmbH
• Siemens AG

By Product	By End User	By Region
Smartphones Smart Watch Smart Glasses Wireless Printers Smart Meters Smart Cameras Connected Bulbs Smart Locks Others	Industrial Commercial Residential	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Smart Connected Devices Market, By Product:

• Smartphones
• Smart Watch
• Smart Glasses
• Wireless Printers
• Smart Meters
• Smart Cameras
• Connected Bulbs
• Smart Locks
• Others

• Smart Connected Devices Market, By End User:

• Industrial
• Commercial
• Residential

• Smart Connected Devices 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