U.S. Smart Home Market Size, Share & Industry Analysis, By Device Type (Safety and Security Devices, Energy and Water Control, Climate Control, Lighting Control, Consumer Electronics), By Housing Type (Multifamily Dwelling, Single Family Dwelling), Regional Forecast, 2023-2030

The U.S. smart home market size was valued at USD 21.28 billion in 2022. The market is projected to grow from USD 24.34 billion in 2023 to USD 78.92 billion by 2030, exhibiting a CAGR of 18.3% during the forecast period.

Smart home technology allows homeowners to control and automate various devices and systems in their home, including lighting, heating & cooling, security, entertainment, and other appliances. Additionally, increasing demand for convenience and automation among consumers is driving the U.S. smart home market growth. Furthermore, the pandemic had boosted the demand for home automation devices in multifamily and single-family housings due to energy efficiency and increased property value.

COVID-19 Impact

COVID-19 Pandemic to Boost Market Growth

The COVID-19 pandemic interrupted regular life and caused individuals, organizations, and governments to modify their policies, priorities, and actions. These developments are acting as a stimulus for technological advancements and innovation. As more people work/study from home, numerous Internet of Things (IoT) gadgets are projected to offer a more comfortable work/study environment during and post-pandemic. According to a report by Parks Associates, in 2020, 28% of the U.S. broadband households owned at least one smart device, which was up from 19% in 2018. As a result, families are increasingly seeking products and solutions that make life more comfortable and provide a higher quality of life. These dynamics have opened up a vast market for home furnishings and home automation solutions, and is likely to drive the market growth.

LATEST TREND

Surge in Adoption of Compliance-regulated Smart Home Devices to Propel Market Growth

Compliance-regulated smart devices refer to devices that have been certified to meet certain standards and regulations set forth by the U.S. government agencies and industrial organizations such as Zigbee, Matter, and California Energy Commission. The rise of home automation technology is enabling users to interoperate multiple appliances, while enhancing remote connectivity. According to Investopedia, globally, there are an estimated 175 million smart homes. The latest application trend combines A.I. and automation to provide domestic assistance in an innovative way. These recent innovations ensure the usage of sophisticated technical gadgets as well as security. Some of the most commonly adapted security features in smart homes include video door alarms, facial recognition devices, advanced burglar alarms, and remotely controlled blocks.

DRIVING FACTORS

Increased Home Value due to Adoption of Smart Devices to Propel Market Growth

Smart home technology has become increasingly popular among homeowners, and it has been shown to increase the appeal and marketability of a house, particularly for the younger generation of buyers. According to State of the Smart Home 2020 report, 36% of U.S. households have adopted some form of home automation technology as of 2020, up from 31% in 2019. This indicates a significant increase in the adoption of smart appliances by home builders in five years.

Smart features that can increase a home’s value come in different forms, but generally include systems that offer convenience, energy efficiency, and security. Additionally, rapid deployment of voice-enabled smart assistants is assisting consumers in controlling their systems with voice commands, thereby prioritizing technology and convenience and driving the U.S. smart home market share.

RESTRAINING FACTORS

High Initial Setup Costs and Connectivity Issues to Hamper Market Growth

Home automation devices often come with a premium pricing as compared to traditional devices, which can act as a deterrent for those who are price-sensitive. Additionally, consumers are hesitant to invest in smart devices due to concerns about their reliability, particularly in the event of power outages or connectivity issues. According to a 2020 survey by Natural Association of Home Builders, the cost of smart home technology was cited as the top reason why homebuyers don’t purchase these devices, with 40% of respondents indicating cost as a major concern. A study by Parks Associates also found that one-third of U.S. households with smart devices experienced connectivity issues at least once a month.

SEGMENTATION

By Device Type Analysis

Rising Adoption of Smart Appliances and Assistants to Support Market Expansion

Based on device type, the market is classified into safety & security devices, energy & water, climate, lighting control, and consumer electronics.

The consumer electronics segment is projected to dominate the market by capturing the largest share during the forecast period due to increasing adoption of smart products, such as refrigerators, televisions, locks, smart lights, and lighting controls. Energy & water segment is projected to register the highest CAGR due to the surging trend of environmental protection and need to reduce carbon footprints. Additionally, rising prices of consumer electronics have increased the adoption of energy control smart appliances.

By Housing Type Analysis

Surging Young Families and Migrant Population to Increase Demand for Smart Appliances in Multifamily Dwellings

Based on housing type, the market is divided into single family dwellings and multifamily dwellings. Single family dwellings include infrastructure facilities, such as detached dwellings or free standing units, which have some surrounding area for gardening and similar activities. Multifamily dwellings include flats, apartments, condos, villas, terraced housing, and semi-detached housing units.

Amongst them, single family dwellings segment is expected to hold the largest market share during the forecast period due to higher preference toward owning a house including a larger residential area. Multifamily dwellings segment is expected to grow at a higher CAGR owing to surging empty-nesters, young families, and lower acquisition prices.

KEY INDUSTRY PLAYERS

Major Players Focus on Deploying Solutions Which Provide Inbuilt Integrations and Voice Control Abilities

The key players in the market are Amazon Inc., Samsung Group, Google, Honeywell International, and Apple Inc., amongst others. To give advanced products and services to their clients, the corporations are investing in R&D to create an ecosystem and improve M2M connectivity. They are also launching voice-enabled solutions to enable hands-free consumer experience and improve market growth.

• October 2022: Google partnered with Samsung to deploy ‘Matter’, an interoperable and integrated smart home system. This partnership resulted in the integration of Matter-compatible Samsung Galaxy devices with Google Home and SmartThings, which enhanced consumer experience and M2M connectivity.

List of the Key Companies Profiled:

• Amazon Inc. (U.S.)


• Apple Inc. (U.S.)


• Alphabet Inc. (U.S.)


• Honeywell International Inc. (U.S.)


• LG Electronics Inc. (South Korea)


• Samsung Group (South Korea)


• Koninklijke Philips N.V. (Netherlands)


• Wink Labs Inc. (U.S.)


• Sony Corporation (Tokyo, Japan)


• August Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2022: Yale Home launched Yale Assure Lock 2, which is a smart lock with Matter-enabled connectivity. The device supported Bluetooth and Wi-Fi connectivity for remote device management.


• August 2022: Amazon acquired iRobot, a manufacturer of smart vacuum cleaners, for USD 1.66 billion. This acquisition resulted in the integration of Amazon Alexa with Roomba, a vacuum robot, while providing opportunities for business expansion and strengthening market dominance.


• November 2021: Level Home acquired Dwelo, which provides automation platforms for smart apartments. The company also raised series C funding of USD 100 million, led by Walmart and Cox Communications. This acquisition enhanced their SaaS platform by improving hardware, new abilities, and seamless user control.


• January 2021: D-Link Corporation launched ‘mydlink’ smart home solutions, designed to provide enhanced safety and security systems to households during the pandemic, ensuring the protection of the property and occupants. For homebody individuals, the device included features, such as mydlink cloud, AI-enabled protection, and ensuring increased security and manageability.


• February 2021: The uCIFI Alliance announced the public release of the first uniform data model to enable interchangeability and interoperability among connected home devices. This would lower costs and ensure the long-term viability of investments. The open-source model focused on key smart-city applications, such as water metering & distribution monitoring, street lighting, waste management, traffic monitoring, smart parking, air-quality monitoring, and safety of smart buildings.

REPORT COVERAGE

The market research report includes a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, largest market share, and leading product applications. Besides this, it offers insights into the latest market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over the years.

REPORT SCOPE & SEGMENTATION