Artificial Intelligence (AI) in Home Automation Market Opportunities and Strategies to 2034

This report describes and explains the artificial intelligence (AI) in home automation market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global artificial intelligence (AI) in home automation market reached a value of nearly $20.51 billion in 2024, having grown at a compound annual growth rate (CAGR) of 26.65% since 2019. The market is expected to grow from $20.51 billion in 2024 to $75.16 billion in 2029 at a rate of 29.65%. The market is then expected to grow at a CAGR of 29.54% from 2029 and reach $274.15 billion in 2034.

Growth in the historic period resulted from high internet penetration, increasing adoption of virtual assistants, increasing focus on home security and surveillance and rising machine learning algorithms. Factors that negatively affected growth in the historic period were high initial costs and complexity in integration.

Going forward, rising smart home device adoption, high demand for cloud-based services, increasing digital transformation and growing integration of ai-powered chatbots will drive the growth. Factor that could hinder the growth of the artificial intelligence (AI) in home automation market in the future include privacy concerns related to data collection and surveillance and limited availability of skilled professionals for ai installation and support.

North America was the largest region in the artificial intelligence (AI) in home automation market, accounting for 38.66% or $7.93 billion of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence (AI) in home automation market will be Asia-Pacific and Middle East where growth will be at CAGRs of 35.58% and 33.26% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 32.02% and 31.25% respectively.

The global artificial intelligence (AI) in home automation market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 23.90% of the total market in 2023. Google LLC was the largest competitor with a 4.30% share of the market, followed by Apple Inc. with 3.40%, Amazon.com Inc. with 3.15%, Samsung Electronics Co. Ltd. with 2.64%, Panasonic Corporation with 2.54%, LG Electronics Co. Ltd. with 1.83%, ADT Inc. with 1.69%, Honeywell International Inc. with 1.52%, Xiaomi Corporation with 1.43% and Johnson Controls International plc with 1.41%.

The artificial intelligence (AI) in home automation market is segmented by component into hardware, software and services. The hardware market was the largest segment of the artificial intelligence (AI) in home automation market segmented by component, accounting for 48.87% or $10.02 billion of the total in 2024. Going forward, the services segment is expected to be the fastest growing segment in the artificial intelligence (AI) in home automation market segmented by component, at a CAGR of 34.26% during 2024-2029.

The artificial intelligence (AI) in home automation market is segmented by technology into machine learning (ML), natural language processing (NLP), computer vision and other technologies. The machine learning (ML) market was the largest segment of the artificial intelligence (AI) in home automation market segmented by technology, accounting for 41.35% or $8.48 billion of the total in 2024. Going forward, the natural language processing (NLP) segment is expected to be the fastest growing segment in the artificial intelligence (AI) in home automation market segmented by technology, at a CAGR of 37.90% during 2024-2029.

The artificial intelligence (AI) in home automation market is segmented by application into voice assistants, security and surveillance, energy management, predictive maintenance and other applications. The voice assistants market was the largest segment of the artificial intelligence (AI) in home automation market segmented by application, accounting for 33.04% or $6.77 billion of the total in 2024. Going forward, the voice assistants segment is expected to be the fastest growing segment in the artificial intelligence (AI) in home automation market segmented by application, at a CAGR of 34.49% during 2024-2029.

The top opportunities in the artificial intelligence (AI) in home automation market segmented by component will arise in the hardware segment, which will gain $23.28 billion of global annual sales by 2029. The top opportunities in the artificial intelligence (AI) in home automation market segmented by technology will arise in the natural language processing (NLP) segment, which will gain $22.21 billion of global annual sales by 2029. The top opportunities in the artificial intelligence (AI) in home automation market segmented by application will arise in the voice assistants segment, which will gain $23.04 billion of global annual sales by 2029. The artificial intelligence (AI) in home automation market size will gain the most in the USA at $15.67 billion.

Market-trend-based strategies for the artificial intelligence (AI) in home automation market include focus on developing technologically advanced products, such as AI refrigerators, focus on entering into strategic partnerships and collaboration, development of advanced personalized solutions, such as smart thermostats and development of innovative products, such as AI-powered set-top boxes.

Player-adopted strategies in the artificial intelligence (AI) in home automation market include focus on expanding operational capabilities business capabilities through new product launch.

To take advantage of the opportunities, the analyst recommends the artificial intelligence (AI) in home automation market companies to government policies and regulations, impact of geopolitical dynamics on supply chains, international trade policies, impact of interest rate fluctuations, impact of inflationary pressures, impact of the COVID-19 pandemic and recovery, demographic shifts and aging population, development of ai-powered robotics for home assistance, advancements in natural language processing (NLP), energy consumption of ai systems and data privacy and protection regulations.

Major Market Trends

• AI-Powered Smart Refrigeration for Enhanced Convenience, Efficiency, and Sustainability
• Collaborative Innovations for Enhanced Security and Smart Living
• Advanced Smart Thermostat Technology for Energy Efficiency and Personalized Comfort
• Focus on AI-Powered Set-Top Box Redefining Home Entertainment and Smart Living

Key Mergers and Acquisitions

• ABB Ltd. Acquired Lumin
• Develco Products Acquired Datek Smart Home
• Daisy Acquired SaaviHome
• LG Electronics Acquired Athom
• Resideo Technologies Inc. Acquired Snap