United States Smart Home Market to Grow at a CAGR of 13.52% Through 2031 | Smart Security & Access Control Lead With 30% Share Driven by Rising Demand for Connected Home Safety Solutions

Leander, Texas and TOKYO, Japan - Dec.09.2025
Market Size
As per DataM Intelligence research report, "The Global Smart Home Market is expected to grow at a CAGR of 13.52% during the forecast period 2024-2031." Rising adoption of connected devices and increasing consumer demand for automated, energy-efficient home solutions are driving market growth.

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United States: Recent Industry Developments
✅ In November 2025, major U.S. smart home manufacturers introduced next-gen Matter-compatible devices, improving interoperability across lighting, HVAC, and security ecosystems. This strengthens unified smart home experiences in the U.S. market.

✅ In October 2025, leading energy companies partnered with home automation brands to launch AI-driven smart energy management systems, helping households reduce electricity consumption and optimize peak-hour usage. This accelerates U.S. smart energy adoption.

✅ In September 2025, U.S. smart security firms released advanced AI-powered doorbell and indoor cameras with real-time threat detection and facial recognition. This boosts the country's home security technology landscape.

Japan: Recent Industry Developments
✅ In November 2025, Japanese electronics giants rolled out compact robotic smart assistants for home cleaning, caregiving, and elderly support aligned with Japan's rising aging population needs. This strengthens Japan's home robotics innovation.

✅ In October 2025, Japan advanced its implementation of smart home IoT standards to enhance seamless communication between appliances, security systems, lighting, and home energy tools. This improves nationwide interoperability.

✅ In September 2025, Japanese housing developers integrated built-in smart home infrastructure (smart switches, automated climate control, remote security access) into new residential constructions. This increases adoption among homebuyers.

Global: Recent Industry Developments
✅ In 2025, the global smart home market expanded rapidly due to rising demand for connected devices, home security automation, and energy-efficient solutions across the U.S., Europe, and Asia-Pacific. This drives strong global adoption.

✅ In 2025, manufacturers worldwide launched AI-powered smart home ecosystems integrating voice assistants, predictive automation, and multi-device connectivity for enhanced user convenience. This elevates global automation standards.

✅ In 2024-2025, increasing adoption of smart home health monitoring (fall detection, air-quality sensing, remote health support) boosted integration of wellness features into smart home setups. This expands the scope of connected home living.

Smart Home Market Key Drivers :
- The smart home market is expanding as homeowners, real estate developers, and technology providers increasingly adopt connected devices to enhance home automation, energy efficiency, and security. Smart home solutions including smart speakers, lighting systems, thermostats, security cameras, and connected appliances enable seamless control, monitoring, and personalization through IoT and AI-powered platforms. Rising consumer demand for convenience, improved safety, and energy savings is driving market growth. Advancements in wireless connectivity, voice assistants, edge computing, and interoperability standards are further improving system integration and user experience.

- Collaboration among device manufacturers, telecom operators, and software developers is accelerating innovation in home automation ecosystems, smart energy management, and AI-driven predictive control. Integration of smart sensors, home surveillance analytics, and intelligent climate-control systems is optimizing household efficiency and comfort. Increasing adoption of cloud-based platforms, growing emphasis on sustainable living, and expansion of e-commerce channels are creating new opportunities across global markets. With continuous technological innovation, rising consumer awareness, and expanding smart infrastructure, the smart home market is poised for long-term growth.

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Major Key Players
1) Honeywell International
Estimated Market Share: 12-18%
Overview:
Honeywell is a leading provider of smart home solutions, including thermostats, security systems, sensors, and energy-management devices. Their deep expertise in automation, strong global presence, and integration with smart platforms (HVAC, security, IoT) make Honeywell a major force in the smart home market.

2) Siemens AG
Estimated Market Share: 10-16%
Overview:
Siemens offers advanced home automation systems focused on energy efficiency, building control, and smart safety. With its strong engineering background and smart infrastructure technologies, Siemens plays a significant role in high-end smart home integration across Europe and Asia.

3) Johnson Controls International
Estimated Market Share: 8-14%
Overview:
Johnson Controls provides smart thermostats, security devices, HVAC automation, and connected home solutions. Their focus on intelligent building systems and partnerships with home automation brands solidify their position in the global smart home ecosystem.

4) Schneider Electric SE
Estimated Market Share: 10-15%
Overview:
Schneider Electric delivers smart home energy-management devices, lighting controls, switches, and circuit protection systems. The company's EcoStruxure platform and emphasis on sustainable, energy-efficient home solutions give it a strong global market presence.

5) United Technologies Corporation (UTC)
Estimated Market Share: 5-9%
Overview:
UTC (now largely part of Raytheon Technologies and Carrier for building solutions) provides smart home technologies including security systems, smart locks, surveillance, and HVAC controls. Their long-standing presence in building technologies and strong brand partnerships help maintain a meaningful share in the smart home market.

Segment Covered in the Smart Home Market:
- By Product Type
Smart security & access control lead with 30% share, driven by rising adoption of smart locks, video doorbells, and surveillance systems for enhanced home safety.
Smart speakers & entertainment systems hold 25%, supported by increasing integration of voice assistants and connected streaming devices.
Smart lighting captures 15%, boosted by energy-efficient LED solutions and remote-control features.
Smart HVAC & thermostats account for 12%, influenced by demand for energy savings and automated climate control.
Smart kitchen & appliances represent 10%, including connected refrigerators, ovens, and cleaning devices.
Other smart home devices take up 8%, covering sensors, hubs, and home automation controllers.

Regional Analysis - Smart Home Market
- North America - 35% Share
North America leads with 35%, driven by high adoption of IoT devices, strong presence of leading smart home brands, advanced broadband infrastructure, and rising demand for home automation, security, and energy management systems.

- Europe - 28% Share
Europe holds 28%, supported by increasing smart home integration in residential buildings, strong government initiatives for energy efficiency, and widespread adoption of smart lighting, heating, and security solutions across Germany, UK, and France.

- Asia-Pacific - 27% Share
Asia-Pacific accounts for 27%, fueled by rapid urbanization, rising disposable incomes, and expanding smart device penetration. China, Japan, and South Korea are major contributors due to strong electronics manufacturing ecosystems.

- South America - 6% Share
South America holds 6%, driven by growing awareness of home automation technologies and increasing penetration of affordable smart devices, particularly in Brazil and Argentina.

- Middle East & Africa - 4% Share
Middle East & Africa account for 4%, supported by rising smart home integration in new infrastructure developments, growing preference for home security solutions, and expanding retail distribution of smart devices.

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FAQS
1. What is driving the growth of the global smart home market?
The market is primarily driven by increased adoption of IoT-connected devices, rising demand for home automation, growing focus on energy efficiency, and advancements in AI-powered smart home ecosystems.

2. Which smart home product categories are leading the market?
Smart security & access control systems lead the market, followed by smart speakers, entertainment devices, lighting systems, HVAC automation, and connected home appliances.

3. Which regions dominate the smart home market globally?
North America holds the largest market share, followed by Europe and Asia-Pacific, driven by strong IoT penetration, advanced digital infrastructure, and rising adoption of automated home technologies.

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