Smart Home Devices Market Report 2026

The smart home devices market size has grown rapidly in recent years. It will grow from $145.44 billion in 2025 to $171.62 billion in 2026 at a compound annual growth rate (CAGR) of 18%. The growth in the historic period can be attributed to early adoption of home automation devices, rise in broadband and smartphone penetration, growing preference for remote monitoring, increased demand for smart security systems, expansion of consumer electronics manufacturing.

The smart home devices market size is expected to see rapid growth in the next few years. It will grow to $333.78 billion in 2030 at a compound annual growth rate (CAGR) of 18.1%. The growth in the forecast period can be attributed to rising adoption of energy efficient home solutions, growth in AI driven smart home assistants, increasing demand for integrated home ecosystems, expansion of smart lighting and climate systems, rising focus on home healthcare monitoring. Major trends in the forecast period include growing integration of AI enabled home automation, expansion of iot connected smart home ecosystems, increasing focus on cybersecure smart home networks, adoption of ar and vr enhanced home interaction systems, rising demand for sustainable and energy efficient smart devices.

The growing number of IoT-connected devices in buildings is projected to boost the smart home device market moving forward. IoT (Internet of Things) connected devices in buildings encompass various physical objects or systems equipped with sensors, software, and communication capabilities, enabling them to collect and exchange data with one another and centralized systems via the internet. Smart home devices represent a subset of these IoT-connected devices, aimed at enhancing residential living. They offer convenience, automation, and data-driven insights that improve homeowners' quality of life while contributing to the wider IoT ecosystem through data sharing and interoperability. For example, in September 2024, IoT Analytics, a Germany-based provider of strategic business intelligence for IoT, reported that the global number of connected IoT devices reached 16.6 billion by the end of 2023, reflecting a 15% year-on-year increase compared to 2022. Therefore, the rising number of IoT-connected devices in buildings is fueling the growth of the smart home devices market.

Major players in the smart home devices market are strategically incorporating generative artificial intelligence into their products to optimize market revenues. Generative AI enhances user experiences by facilitating natural language interactions, personalized content, automation, and real-time data analysis. In September 2023, Amazon.com Inc., a US-based technology company, introduced generative AI for its voice assistant Alexa, incorporating user personal context such as favorite foods, shows, music, and games. This innovation is positioned as suitable for various settings, including voice, attractions, and homes with individuals of all ages.

In June 2023, ABB Ltd. (Asea Brown Boveri), a technology company based in Switzerland, acquired Eve Systems GmbH for an undisclosed amount. This acquisition is intended to bolster ABB Ltd.'s smart building portfolio by incorporating Eve Systems GmbH’s advanced, Apple HomeKit-compatible smart home devices and privacy-focused technology. This integration will enhance ABB’s capability to offer innovative, energy-efficient, and secure solutions for smart home and building automation. Eve Systems GmbH is a company located in Munich that specializes in manufacturing smart home products.

Major companies operating in the smart home devices market are Amazon.com Inc., Apple Inc., Alphabet Inc., Google LLC, Sony Corporation, Siemens AG, LG Electronics Inc., Panasonic Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd, Johnson Controls International plc, Whirlpool Corporation, Emerson Electric Corporation, Koninklijke Philips N.V., BSH Hausgeräte GmbH, Delta Electronics Inc., Legrand S.A., ADT Inc., Hubbell Incorporated, Vivint Smart Home Inc., Axis Communications AB, Crestron Electronics Inc., Lutron Electronics Co. Inc., Ring LLC, SnapAV, Nest Labs Inc.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on semiconductors, wireless modules, sensors, and electronic components used in smart home devices have increased manufacturing costs, particularly affecting Asia Pacific and North American production hubs. These tariffs slow supply chains, raise product pricing, and impact key segments such as security systems, smart lighting, and connected home appliances. However, they are also accelerating regional sourcing, stimulating domestic component manufacturing, and encouraging innovation in cost optimized smart home technologies that reduce dependency on tariff sensitive imports.

The smart homes devices market research report is one of a series of new reports that provides smart homes devices market statistics, including smart homes devices industry global market size, regional shares, competitors with the devices of a smart home market share, detailed smart homes devices market segments, market trends and opportunities, and any further data you may need to thrive in the smart homes devices industry. This smart home devices market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Smart home devices refer to devices that can be remotely controlled from any internet-connected location worldwide using a mobile or other network device. These interconnected smart home appliances provide users with access to control functions such as home security checks, temperature adjustments, lighting controls, and home theater settings.

The technologies employed in smart home devices include Wi-Fi technology and Bluetooth technology. Wi-Fi technology is a wireless technology that links computers, tablets, smartphones, and other devices to the internet. This involves the transmission of a radio signal from a wireless router to a nearby device, which then converts the signal into usable data. Smart home devices find applications in energy management, climate control systems, healthcare systems, home entertainment systems, lighting control systems, and security and access control systems. These devices are available for purchase through both online and offline channels.Asia-Pacific was the largest region in the smart home devices market in 2025. The regions covered in the smart home devices market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart home devices market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart home devices market consists of sales of smart dishwashers, smart cookware and cooktops, smart ovens, smart refrigerators, and other smart home devices. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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