Smart Homes Market to Surpass $311 Billion by 2031 Driven by Rising Demand for Connected Devices | Mordor Intelligence

The smart homes market is expanding at a 13.65% CAGR from 2026 to 2031, with North America holding the largest regional market share.

HYDERABAD, TELANGANA, INDIA, November 10, 2026 /EINPresswire.com/ -- According to Mordor Intelligence, the smart homes market size is projected to grow from USD 164.13 billion in 2026 to USD 311.22 billion by 2031, registering a CAGR of 13.65% during the forecast period (2026–2031). The market is expanding as consumers increasingly adopt connected devices to improve residential security, energy efficiency, convenience, and home automation. Growing broadband penetration, the integration of artificial intelligence (AI) into household devices, and interoperability standards such as Matter are encouraging manufacturers to develop connected ecosystems. Rising investments in residential electrification, smart energy management, and remote home monitoring are further supporting smart homes market growth across global residential environments.

Smart Homes Market Key Growth Factors

Increasing Demand for Energy-Efficient Smart Appliances

Growing awareness of residential energy consumption is encouraging homeowners to adopt connected thermostats, intelligent lighting, smart HVAC systems, and energy-monitoring devices. These solutions help households optimize electricity usage through automated controls and real-time consumption monitoring. Government incentives supporting heat pumps, battery storage, and residential electrification are further improving adoption economics. Utility demand-response programs are also encouraging consumers to integrate connected appliances into energy management systems, supporting smart homes market growth.

Growing Broadband and 5G Penetration

Expanding broadband availability and 5G connectivity are strengthening the infrastructure required for connected residential environments. Reliable internet connections enable homeowners to remotely operate security cameras, smart locks, lighting systems, and household appliances through centralized applications. Growing fixed wireless access and fiber-optic deployments are extending connectivity to underserved residential areas. These developments are creating additional opportunities for smart device manufacturers and platform providers.

Matter Interoperability Accelerates Connected Home Adoption

The growing adoption of Matter is reducing compatibility barriers between smart home devices developed by different manufacturers. Supported by major technology companies, including Apple, Google, Samsung, and Amazon, the standard enables devices to operate across multiple connected ecosystems. Thread-based connectivity and improved device commissioning are simplifying installation and reducing dependence on proprietary hubs. These developments are encouraging manufacturers to expand interoperable product portfolios and improving consumer adoption.

Ashish Gautam, Senior Research Manager at Mordor Intelligence, says, "As connected devices become increasingly integrated into everyday living and homeowners place greater emphasis on convenience, energy efficiency, and security, dependable market intelligence requires transparent sourcing, consistent validation, and balanced analysis. Mordor Intelligence applies a structured research methodology to provide decision-makers with reliable insights into smart home technology adoption, evolving consumer preferences, competitive dynamics, and long-term opportunities in the smart homes market."

Smart Homes Market Recent Industry Developments

January 2025 – ABB acquires Lumin to expand residential energy management portfolio: ABB announced the acquisition of Lumin, a US-based provider of intelligent energy management systems for homes. The acquisition adds Lumin’s solutions for electrification, solar power, and energy storage to ABB’s portfolio, strengthening its residential energy management capabilities and supporting the development of smarter, more sustainable homes.


February 2026 – ABB launches new wireless smart home control solution: ABB introduced its System Access Point 3.0 Wireless at Light + Building 2026, expanding its ABB-free@home Wireless portfolio. The solution supports Matter and Thread standards, enables integration with major smart home ecosystems, and can connect around 150 devices, helping homeowners upgrade existing properties with scalable wireless automation

Smart Homes Market Segmentation Insights

By Components

Consumer Electronics: Smart Speakers, Smart Home Theater, Smart Purifiers, and Other Consumer Electronics

Access Control, Safety and Security: Smart Alarms, Smart Locks, Smart Sensors, Hazard Detectors, and Smart Cameras

Lighting: Smart Lighting, Lamps, Luminaires, and Ambient Lighting

Energy Management

Smart HVAC and Climate Control

Controllers and Hubs

Smart-Home Healthcare

Smart Kitchen

By Housing Type

Single-Family

Multi-Family

By Installation Type

New Construction

Retrofit

By Sales Channel

Online

Offline

By Connectivity Technology

Wi-Fi

Zigbee and Z-Wave

Bluetooth/BLE

Thread

Powerline and PLC

Other Connectivity Technologies

By Geography

North America: United States, Canada, and Mexico

South America: Brazil, Argentina, and Rest of South America

Europe: Germany, United Kingdom, France, Italy, Spain, Russia, and Rest of Europe

Asia-Pacific: China, Japan, South Korea, India, Australia, New Zealand, and Rest of Asia-Pacific

Middle East: United Arab Emirates, Saudi Arabia, Turkey, and Rest of Middle East

Africa: South Africa, Nigeria, Kenya, and Rest of Africa

Geographic Analysis of the Smart Homes Market

North America continues to play a significant role in the smart homes market, supported by widespread broadband availability, established technology ecosystems, and growing adoption of connected residential security and energy management solutions. Government incentives for residential electrification and energy-efficient appliances are encouraging investments in smart thermostats, battery storage, and connected HVAC systems. The United States remains a major contributor, while Canada is advancing residential automation through energy-efficiency initiatives.

Asia-Pacific is emerging as a key growth region, driven by rapid urbanization, rising household incomes, and expanding digital connectivity across China and India. Regional manufacturers, including Xiaomi and Huawei, are offering competitively priced smart home ecosystems, making connected devices more accessible to consumers. Japan's ageing population is encouraging the adoption of medical-alert systems and remote health-monitoring devices, while South Korea's advanced connectivity infrastructure supports the use of connected security and entertainment applications.

Europe's smart homes market is benefiting from residential energy-efficiency initiatives, stringent data-protection requirements, and growing adoption of connected HVAC and lighting solutions. Germany and the United Kingdom remain important markets, supported by smart energy management and residential renovation initiatives. In the Middle East, smart city investments in the United Arab Emirates and Saudi Arabia are creating opportunities for connected residential technologies. Meanwhile, mobile-first connectivity and solar-powered devices are supporting adoption across selected African markets.

The smart homes market report is also available in the following languages

Japanese: https://www.mordorintelligence.com/ja/industry-reports/global-smart-homes-market-industry?utm_source=einpr

French: https://www.mordorintelligence.com/fr/industry-reports/global-smart-homes-market-industry?utm_source=einpr

German: https://www.mordorintelligence.com/de/industry-reports/global-smart-homes-market-industry?utm_source=einpr

Spanish: https://www.mordorintelligence.com/es/industry-reports/global-smart-homes-market-industry?utm_source=einpr

Portuguese: https://www.mordorintelligence.com/pt/industry-reports/global-smart-homes-market-industry?utm_source=einpr

Smart Homes Market Competitive Landscape

The smart homes market is moderately fragmented, with established electronics manufacturers, automation providers, and technology companies competing across connected residential devices and software platforms. Competition is increasingly shaped by interoperability, cybersecurity, AI-enabled automation, energy management, and subscription-based services. Companies are expanding product portfolios and strengthening partnerships to deliver integrated smart home ecosystems.

Amazon.com Inc., Google LLC, and Apple Inc. compete through connected devices and residential technology platforms, while Samsung Electronics Co. Ltd. strengthens its position through SmartThings and interoperable home automation solutions. Schneider Electric SE, ABB Ltd, Honeywell International Inc., and Siemens AG focus on residential automation, energy management, and connected building technologies. Other participants, including LG Electronics, Signify, ADT, and Arlo Technologies, contribute through connected appliances, lighting, and residential security solutions.

Smart Homes Industry Leaders

ABB Ltd

Schneider Electric SE

Honeywell International Inc.

Emerson Electric Co.

Siemens AG

Explore more insights on smart homes competitive landscape: https://www.mordorintelligence.com/industry-reports/global-smart-homes-market-industry/companies?utm_source=einpr

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