SMART HOME AUTOMATION MARKET Size and trends

Smart Home Automation Market Size and Trends

The Global Smart Home Automation Market is estimated to be valued at USD 83.65 Billion in 2025 and is expected to reach USD 201.72 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.5% from 2025 to 2032.

Key Takeaways of the Global Smart Home Automation Market:

• The hardware segment is estimated to lead the market, holding a share of 54.6% in 2025.
• Among application, the security and access control segment is projected to dominate with a share of 31.4% in 2025.
• North America is expected to lead the market, holding a share of 36.8% in 2025. Meanwhile, Asia Pacific, holding a market share of 28.9% in 2025, is projected to display the fastest growth over the forecast period.

Market Overview:

The smart home automation market is expected to witness significant growth over the forecast period. The growth can be attributed to rising demand for energy efficiency and convenience across both developed and developing countries. Consumers are increasingly adopting smart home automation systems for safety, security, comfort, and entertainment. Moreover, the increasing trend of building automation and integration of IoT is supporting the demand for smart home automation devices and solutions. Various smart products and solutions including smart lighting, smart appliances, home entertainment, and smart security systems have gained traction in recent years. Leading technology companies, such as Schneider Electric and Siemens AG, are investing heavily in research and development to introduce innovative and advanced automation solutions which is fueling the market expansion. The real estate industry is also integrating smart home concepts in new residential and commercial construction which is creating additional opportunities for market growth.

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Key Developments:

• In September 2024, LG Electronics (LG), a provider of consumer electronics, unveiled its LG ThinQ ON AI home hub featuring Affectionate Intelligence at IFA 2024 in Berlin, Germany
• In August 2023, Yale, a lock manufacturer, introduced the Assure Smart Deadbolts, featuring keyless entry and compatibility with major smart home systems

Top Strategies Followed by Global Smart Home Automation Market Players

• Established Players: Major players focus heavily on R&D investment to innovate high-performance products. Companies like Honeywell, Johnson Controls, and Schneider Electric spend over 5% of annual revenues on R&D. They develop next-generation smart home devices with improved energy efficiency, advanced security features, and IoT integration capabilities.
• Mid-Level Players: Mid-sized players pursue cost-effective solutions to target price-sensitive consumers. Companies, such as TCL Home Appliances and LG Electronics, deliver quality products at affordable prices. They leverage economies of scale through global manufacturing facilities and source components from reliable suppliers at bulk rates.
• Small-Scale Players: Small-scale players focus on niche specialization, targeting specific customer segments with unique product attributes. For example, startup August Home offers smart locks optimized for apartment living. Sensoro specializes in pet monitoring solutions. They leverage crowdfunding platforms to gather early customer feedback and validate niche market demand.

Emerging Startups – Smart Home Automation Industry Ecosystem

• Innovative Technologies: In the area of innovative technologies, Cognimat operates an AI-powered home monitoring system that detects anomalies and prevents issues using machine learning algorithms. Anthropic develops self-supervised AI to enable low-power visual perception in smart home appliances.
• Sustainable Solutions: Regarding sustainable solutions, Bumblebee focuses on developing smart thermostats with eco-friendly, recycled plastic exteriors. Green Hive specializes in smart solar lighting and electrical safety solutions to promote renewable energy adoption. Their offerings help reduce the industry's environmental footprint.
• Market Contribution: Some startups contribute to niche markets. Senic focuses on innovative alarm system integration and control capabilities for commercial buildings. IoT provider, Kasa, targets small businesses with smart plugs, switches and security cameras tailored for office automation needs.