U.S. Smart Home Market Size, Share | Industry Report, 2030 (2025)

U.S. Smart Home Market Size & Trends

The U.S. smart home market size was estimated at USD 23.72 billion in 2024 and is projected to grow at a CAGR of 23.4% from 2025 to 2030. The industry is experiencing significant growth, driven by a heightened focus on energy efficiency and sustainability. Consumers are increasingly adopting smart thermostats, lighting systems, and energy monitoring devices to manage utility expenses and optimize energy consumption. Government initiatives, including tax incentives and state-level energy conservation programs, are further promoting the deployment of these technologies.

Additionally, growing environmental awareness is encouraging households to invest in solutions that help reduce carbon emissions. Given the continued volatility in energy costs, demand for smart energy management technologies within the industry is expected to remain strong.

The industry is being significantly transformed by the integration of AI-powered voice assistants such as Amazon Alexa, Google Assistant, and Apple Siri. These platforms enable users to control multiple devices seamlessly, enhancing convenience and user experience. Continuous advancements in natural language processing and machine learning are further improving the functionality and personalization of smart home ecosystems. As consumer expectations for intelligent, responsive systems grow, manufacturers are embedding voice and AI technologies into a broader range of devices. This shift is a major driver of innovation and growth within the industry.

Security concerns are a key factor fueling the growth of the industry, particularly through the demand for smart cameras, video doorbells, and integrated alarm systems. Consumers value real-time alerts, remote monitoring, and cloud storage capabilities that these smart security solutions provide. The rise in crime rates in certain urban areas and increased awareness about personal safety have accelerated product adoption. Insurance companies are also offering premium discounts for homes equipped with certified smart security systems, further incentivizing uptake. This trend underscores the strategic role of security in shaping the future landscape of the industry.

The smart kitchen segment is emerging as a major driver of innovation in the market. Consumers are adopting smart refrigerators, ovens, dishwashers, and coffee machines that can be controlled via mobile apps or voice commands. These appliances not only enhance convenience but also contribute to energy savings and improved cooking experiences. Manufacturers are increasingly embedding AI and IoT features to provide recipe suggestions, inventory tracking, and automatic ordering. The kitchen is becoming a hub of connected living, reinforcing the expansion of the industry.

A growing focus on smart exteriors, particularly smart garages and driveway monitoring systems, is contributing to the diversification of the U.S. smart home market. Homeowners are adopting smart garage door openers with geofencing, real-time alerts, and app control to enhance convenience and security. Integrated camera systems and license plate recognition technologies are now being added to monitor visitor activity. These features are particularly appealing to suburban households, where vehicle security and automated access are high priorities. This outdoor expansion complements the in-home automation ecosystem within the industry.

Remote work is now a permanent fixture in many households, and the market is adapting to meet these evolving professional needs. Smart solutions such as noise-canceling window tech, room-specific lighting automation, and climate control systems are enhancing home office environments. Connectivity-focused upgrades-like mesh Wi-Fi networks and smart conferencing tools-are being prioritized. Employers are even subsidizing certain home upgrades to improve remote productivity. This professional use-case is creating a new category of demand that merges smart home convenience with business functionality.

The rising demand for interconnected and intuitive home automation solutions is significantly influencing the industry, with major players like Amazon and Google leading the way through their robust ecosystem-centric strategies. These tech giants specialize in developing AI-powered platforms, Alexa and Google Assistant, that enable centralized control of a wide range of smart devices. Their competitive edge lies in offering both proprietary products, such as Amazon Echo and Nest Thermostats, and broad compatibility with third-party devices. Additionally, their open software development kits (SDKs), strong developer communities, and extensive retail networks enhance their market scalability and integration capabilities. Consequently, these ecosystems have become the go-to foundation for consumers entering the industry.

Product Insights

The security & access control segment dominated the market with a share of over 28% in 2024. The segment is witnessing rapid growth as homeowners increasingly prioritize safety, surveillance, and convenience. This trend is driven by the rising adoption of smart door locks, video doorbells, motion detectors, and integrated alarm systems that provide real-time alerts and remote access via smartphones. The demand for features like facial recognition, two-factor authentication, and AI-powered threat detection is reshaping consumer expectations in home protection. Additionally, the integration of these systems with voice assistants and mobile ecosystems enhances user experience and operational efficiency. As residential security becomes more proactive and personalized, smart access control solutions are becoming essential components of modern home automation setups.

The home healthcare segment is expected to witness the fastest CAGR of over 30% from 2025 to 2030. The home healthcare segment is emerging as a critical area of growth, fueled by the aging population, chronic illness management, and increasing preference for in-home medical care. Smart devices such as remote patient monitoring systems, connected blood pressure monitors, glucose meters, and medication reminders enable continuous care outside traditional healthcare facilities. These technologies allow real-time health data transmission to caregivers and healthcare providers, facilitating timely interventions and improved patient outcomes. Voice-controlled assistance, emergency response systems, and AI-driven health analytics further enhance the efficiency and safety of home-based care. As healthcare shifts toward more patient-centric and cost-effective models, smart home healthcare solutions are becoming indispensable for enhancing quality of life and reducing hospital dependency.

Protocol Insights

The hybrid protocols segment dominated the market with the largest share in 2024, driven by its ability to integrate the benefits of both wired and wireless technologies seamlessly. The hybrid smart home system is becoming increasingly popular in the U.S. market. This innovative approach offers enhanced connectivity and flexibility by enabling devices to communicate over power lines or other existing infrastructure, thus avoiding interference with Wi-Fi networks. The ability to leverage power lines for communication significantly reduces the need for additional routers, simplifying installation and network management for consumers. As a result, hybrid systems are gaining traction among homeowners who prioritize reliability, efficiency, and reduced setup complexity in their smart home solutions. With the growing demand for cost-effective and high-performance systems, hybrid protocols are positioning themselves as a preferred choice in the evolving market.

The wireless protocols segment is expected to witness the fastest CAGR from 2025 to 2030. The rise of wireless protocols is driven by the integration of IoT devices and advanced technologies like AI and machine learning, enabling seamless automation and connectivity. As consumers seek energy-efficient, sustainable, and customizable solutions, wireless systems offer flexibility and ease of installation. The affordability of smart devices, combined with innovations like voice-controlled virtual assistants, has accelerated adoption. The rollout of Wi-Fi 6 ensures fast, reliable connectivity for multiple devices, supporting the growing demand for high-performance systems. Furthermore, the latest trends in 5G technology and low-power wide-area networks (LPWAN) are enhancing wireless communication, enabling smarter, more efficient homes with improved security, energy management, and device interoperability.

Application Insights

The retrofit segment dominated the market with the largest share in 2024. The increasing focus on sustainability and reducing carbon footprints is driving the growing demand for energy-efficient smart home technologies in the U.S. Many homeowners are opting for retrofit solutions such as smart thermostats, energy-efficient lighting, and intelligent power outlets to monitor and manage energy consumption. These devices not only provide convenience but also help lower utility bills by optimizing energy use based on real-time data. As more consumers become aware of the financial and environmental benefits of energy-saving smart devices, this trend is expected to gain momentum. Retrofit solutions offer a cost-effective way for homeowners to achieve energy efficiency without the need for full home renovation.

The new construction segment is expected to witness the fastest CAGR from 2025 to 2030. The growing interest in smart homes is significantly influencing the new construction segment of the U.S. housing market. Homebuyers are increasingly seeking homes equipped with smart technologies, such as smart lighting, thermostats, and security systems, as part of their standard features. Builders are responding to this demand by incorporating these devices into new homes, often as part of a broader trend towards modern, tech-driven living environments. These homes offer increased convenience, energy efficiency, and security, which are attractive selling points for buyers. The new construction segment is expected to continue growing as consumers become more accustomed to the benefits of integrated smart technologies in their daily lives.

Key U.S. Smart Home Company Insights

Some of the key players operating in the market include Google LLC and Apple Inc.

• Apple Inc. remains a mature and influential player in the U.S. smart home ecosystem through its HomeKit platform. Its strength lies in privacy-focused, tightly integrated smart devices like HomePod and Apple TV that serve as smart home hubs. The company's premium branding and loyal customer base give it a unique advantage in maintaining long-term user engagement. As Apple continues to invest in AI and edge computing, its smart home offerings are expected to grow in capability and market share.

• Google LLC has cemented its position through the Nest ecosystem, offering products such as thermostats, cameras, and doorbells with built-in Google Assistant. The company’s focus on machine learning and context-aware automation gives it a competitive edge in intelligent home experiences. Google’s integration with Android and broad third-party compatibility attracts a wide U.S. consumer base. Its commitment to sustainability and smart city initiatives further enhances its role in shaping the future of home automation.

Arlo Technologies and Xiaomi are some of the emerging participants in the U.S. smart home market.

• ArloTechnologies is rapidly expanding in the U.S. smart home market with its advanced wireless security camera systems. Known for user-friendly interfaces and high-quality video, Arlo appeals to consumers looking for easy DIY security solutions. Its cloud-based services and AI-driven motion detection features make it a go-to choice in the evolving smart surveillance segment. As demand for remote home monitoring grows, Arlo continues to scale its presence.

• Xiaomi is emerging in the U.S. through competitively priced smart home products such as smart bulbs, robot vacuums, and security cameras. Its ecosystem approach, centered around the Mi Home app, provides an integrated smart living experience. Although it is more dominant in Asian markets, Xiaomi's expanding compatibility with U.S. voice assistants and platforms is boosting its local adoption. Its affordability and expanding product range position it as a promising challenger in the U.S. market.

Recent Developments

• In March 2025, Schneider Electric unveiled its new 10,500-square-foot Energy Innovation Center in Houston, Texas, strategically located in the city's renowned energy corridor. This state-of-the-art facility is designed to showcase AI-driven solutions and serves as a training hub for industry professionals, featuring an interactive control room that simulates real-world industrial scenarios across various sectors. The center underscores Schneider Electric's commitment to advancing digital transformation in energy management and automation, aligning with its EUR 2 billion investment plan for 2024–2027 to support growing demands in digitalization, automation, and manufacturing.

• In February 2025, ADT introduced ADT+, a smart home security platform that integrates proprietary ADT hardware with Google Nest devices for a unified user experience. The platform offers AI-powered insights, real-time alerts, and allows users to control security features like cameras, locks, and thermostats through one app. ADT also launched Trusted Neighbor, a service that enables homeowners to grant temporary, secure access to their homes via the app, modernizing how people share home access.

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U.S. Smart Home Market Report Scope

U.S. Smart Home Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest technological trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. smart home market report based on product, protocols, and application:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Security & Access Controls

    • Security Cameras

    • Video Door Phones

    • Smart Locks

    • Remote Monitoring Software & Services

    • Others

  • Lighting Control

    • Smart Lights

    • Relays & Switches

    • Occupancy Sensors

    • Dimmers

    • Other Products

  • Entertainment Devices

    • Smart Displays/TV

    • Streaming Devices

    • Sound bars and Speakers

  • HVAC

    • Smart Thermostats

    • Sensors

    • Smart Vents

    • Others

  • Smart Kitchen Appliances

    • Refrigerators

    • Dish Washers

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    • Cooktops

    • Microwave/Ovens

  • Home Appliances

    • Smart Washing Machines

    • Smart Water Heaters

    • Smart Vacuum Cleaners

  • Smart Furniture

  • Home Healthcare

  • Other Devices

• Protocol Outlook (Revenue, USD Million, 2018 - 2030)

  • Wireless Protocols

    • ZigBee

    • Wi-Fi

    • Bluetooth

    • Z Wave

    • Others

  • Wired Protocols

  • Hybrid

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • New Construction

  • Retrofit