Connected Home Device Market Trends and Forecast
The future of the global connected home device market looks promising with opportunities in the dwelling, business building, and hotel markets. The global connected home device market is expected to grow with a CAGR of 6.8% from 2025 to 2031. The major drivers for this market are the increasing demand for home automation solutions, the rising adoption of voice-controlled smart devices, and the growing need for energy-efficient connected appliances.
• Lucintel forecasts that, within the type category, hybrid is expected to witness the highest growth over the forecast period.
• Within the application category, dwelling is expected to witness the highest growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Connected Home Device Market
The connected home device market is witnessing key trends driven by consumer demand for automation, security, energy efficiency, and enhanced user experiences. These trends are reshaping the market as technology evolves and more consumers integrate smart devices into their daily lives.
• Voice Assistants and AI Integration: Voice assistants like Amazon Alexa, Google Assistant, and AppleÄX%$%Xs Siri are becoming the central control hubs in connected homes. The integration of AI enables smarter automation, voice-based controls, and personalized experiences. This trend is leading to higher demand for smart speakers and devices compatible with voice commands.
• Smart Home Security and Surveillance: There is a rising demand for connected security systems, including smart cameras, doorbell cameras, and motion detectors. These systems provide remote monitoring, real-time alerts, and increased safety. Consumers are increasingly choosing integrated security systems that offer advanced features like facial recognition and AI-powered alerts.
• Energy Efficiency and Sustainability: Sustainability and energy-saving solutions are gaining traction, with consumers seeking connected devices that reduce energy consumption. Smart thermostats, energy-efficient lighting, and solar-powered devices are in demand, particularly in regions focusing on environmental sustainability. Smart home technology is helping users track and optimize their energy use, reducing carbon footprints.
• Interoperability and Ecosystem Integration: The demand for seamless integration between different smart devices is driving interoperability. Consumers expect their devices, regardless of brand, to work together efficiently. Companies are focusing on creating interconnected ecosystems where lights, thermostats, security systems, and entertainment devices work harmoniously under a single platform, often via smartphone apps.
• Smart Health and Wellness Devices: The integration of health and wellness technology into connected homes is becoming increasingly popular. Devices like smart wearables, health monitoring systems, and AI-powered fitness equipment are being integrated into smart home ecosystems. These devices help users monitor their health in real time, offering insights into wellness trends and providing early warning signs of health issues.
Emerging trends such as AI integration, advanced home security, energy efficiency, device interoperability, and health-focused solutions are transforming the connected home device market. These developments are enhancing user experiences, promoting sustainability, and driving the future growth of the smart home sector.
Recent Development in the Connected Home Device Market
Recent developments in the connected home device market highlight significant advancements in technology, user experience, and integration. These developments cater to increasing consumer demand for convenience, security, and energy efficiency in everyday life.
• Growth in Smart Speakers and Voice Control: The expansion of smart speakers, such as Amazon Echo, Google Nest, and Apple HomePod, has revolutionized the connected home. Voice control allows users to operate various smart devices hands-free, creating a more convenient and seamless home environment. The demand for voice assistants is expected to continue growing across regions.
• Integration of Smart Appliances: Major appliance manufacturers are integrating IoT technology into everyday appliances like refrigerators, washing machines, and ovens. These smart appliances offer features such as remote control, usage tracking, and automation. The ability to monitor appliance performance and receive alerts when maintenance is needed is appealing to modern consumers.
• Focus on Smart Home Security: Security-focused developments, such as smart cameras, doorbell cameras, and integrated alarm systems, have become a cornerstone of connected homes. Consumers increasingly value real-time alerts, remote monitoring, and video streaming, driving the growth of these security technologies. Brands are innovating to include AI-powered features like facial recognition and movement detection.
• Sustainability and Smart Energy Systems: There has been a significant rise in smart home energy solutions, such as smart thermostats, solar energy systems, and energy-efficient lighting. With a focus on reducing energy consumption, connected devices allow consumers to track usage, optimize efficiency, and save on energy bills. The trend is particularly prominent in regions with strong environmental policies.
• Adoption of Smart Home Hubs: The role of smart home hubs is expanding, with devices like Samsung SmartThings and Amazon Echo becoming central control units for all connected devices. These hubs integrate diverse devices, such as lights, thermostats, and security systems, into one unified platform, simplifying control and automation for users.
Recent developments in smart speakers, appliances, home security, energy management, and smart home hubs are shaping the connected home device market. These innovations are meeting growing consumer demand for smarter, more efficient, and more integrated home experiences.
Strategic Growth Opportunities in the Connected Home Device Market
The connected home device market offers several strategic growth opportunities across various applications, from energy management to home security and entertainment. Manufacturers and service providers can capitalize on these opportunities by developing innovative, user-friendly, and cost-effective solutions.
• Home Security and Surveillance: There is a growing opportunity in the home security segment, driven by increasing consumer demand for smart cameras, doorbell cameras, and integrated alarm systems. Manufacturers can innovate by incorporating AI-powered features like facial recognition and personalized security alerts to improve the overall user experience and reliability.
• Energy Management and Sustainability: As consumers prioritize sustainability, the demand for energy-efficient solutions is rising. Smart thermostats, energy-saving lighting, and solar-powered devices present significant growth opportunities. Companies can expand their product offerings to include devices that help consumers monitor and reduce their energy usage, contributing to both savings and sustainability goals.
• Home Automation and Integration: The need for seamless integration between various smart devices presents a huge opportunity for the development of comprehensive home automation systems. By offering hubs and platforms that enable different devices to work together, companies can provide consumers with a more cohesive and user-friendly smart home experience.
• Health and Wellness Integration: The rise of health-conscious consumers presents a growth opportunity for connected health devices, such as smart wearables, fitness monitors, and sleep trackers. Integrating these devices into home ecosystems can help users track their health and well-being, offering personalized insights and recommendations.
• Senior Care and Aging in Place: As the aging population grows, there is an increasing demand for connected home devices that support senior care. Smart devices for monitoring health, fall detection, and medication reminders are essential in helping elderly individuals live independently. Manufacturers can target this market by creating tailored solutions for aging-in-place needs.
Strategic growth opportunities in home security, energy management, automation, health and wellness, and senior care are reshaping the connected home device market. By targeting these segments with innovative solutions, companies can expand their reach and meet evolving consumer demands.
Connected Home Device Market Driver and Challenges
The connected home device market is influenced by several technological, economic, and regulatory factors. While innovation and consumer demand are key drivers, challenges such as security concerns and interoperability issues are shaping the market’s future growth.
The factors responsible for driving the connected home device market include:
1. Technological Advancements: The rise of IoT, AI, and voice assistants has greatly enhanced the capabilities of connected home devices, making them more efficient and user-friendly. These advancements drive consumer interest and expand the range of smart devices available, encouraging widespread adoption.
2. Consumer Demand for Convenience: Consumers are increasingly adopting connected devices to simplify their lives. Smart homes offer convenience, automation, and energy efficiency, which drive the growth of smart speakers, home security systems, and appliances. This shift in consumer preferences is a significant driver of market growth.
3. Improved Connectivity and Infrastructure: As broadband and 5G networks expand globally, connectivity issues that once limited the adoption of smart home devices are diminishing. Improved internet infrastructure supports the widespread use of connected home technologies, facilitating growth in both urban and rural areas.
4. Focus on Sustainability: Growing concerns about energy consumption and environmental sustainability are driving demand for energy-efficient and eco-friendly connected devices. Smart thermostats, solar-powered systems, and energy management solutions are increasingly sought after, aligning with global sustainability efforts.
5. Aging Population: As the global population ages, there is increasing demand for connected devices to support elderly individuals in living independently. Smart health monitors, emergency alert systems, and home automation tools are driving growth in this segment.
Challenges in the connected home device market are:
1. Security and Privacy Concerns: Data privacy and security remain major challenges for connected home devices. Consumers are concerned about the potential risks of hacking, surveillance, and unauthorized data collection, which can hinder widespread adoption.
2. Interoperability Issues: With a fragmented market of devices and platforms, ensuring seamless integration between devices from different brands remains a challenge. Lack of standardization can result in a subpar user experience, limiting the appeal of connected home devices.
3. High Costs: While prices for connected devices are decreasing, high-quality products still come with a premium price tag. For many consumers, the upfront costs of smart devices, along with ongoing service subscriptions, can be a barrier to adoption.
Technological advancements, consumer demand for convenience, and sustainability concerns are major drivers in the connected home device market. However, challenges such as security concerns, interoperability issues, and high costs remain hurdles that companies need to address to ensure continued market growth.
List of Connected Home Device Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies connected home device companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the connected home device companies profiled in this report include-
• Phillips
• Samsung
• Schneider Electric
• Siemens
• Analog Devices
• General Electric
• Honeywell
• Johnson Controls
• LG Electronics
• Panasonic
Connected Home Device Market by Segment
The study includes a forecast for the global connected home device market by type, application, and region.
Connected Home Device Market by Type [Value from 2019 to 2031]:
• Device-based
• Mobile
• Hybrid
Connected Home Device Market by Application [Value from 2019 to 2031]:
• Dwelling
• Business Building
• Hotel
• Others
Connected Home Device Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Connected Home Device Market
The connected home device market is experiencing significant growth as consumers increasingly embrace smart technologies for enhanced convenience, security, and energy efficiency. This shift is driven by advancements in IoT (Internet of Things), voice assistants, and automation systems. The market is evolving rapidly in key regions such as the United States, China, Germany, India, and Japan, each with unique dynamics influencing their adoption and growth.
• United States: In the United States, the connected home market has surged with the increasing popularity of smart speakers, home security systems, and energy-efficient devices. Companies like Amazon, Google, and Apple continue to lead the way, enhancing product ecosystems. Consumer interest in integrated home automation systems is growing, especially with a focus on voice-controlled technologies and greater compatibility across devices.
• China: China is experiencing rapid expansion in the connected home market, driven by high local demand and advancements in AI and IoT. Companies such as Xiaomi and Alibaba are at the forefront of creating affordable, integrated smart home ecosystems. Chinese consumers are increasingly adopting connected devices, including smart lighting, appliances, and home automation systems, due to the countryÄX%$%Xs robust digital infrastructure.
• Germany: GermanyÄX%$%Xs connected home market is largely focused on energy efficiency and sustainability, with an emphasis on smart heating and energy management systems. As part of the countryÄX%$%Xs commitment to the Energiewende (energy transition), German consumers are adopting smart thermostats and solar-powered systems. Major tech firms, alongside regional startups, are innovating to offer eco-friendly and smart energy solutions for homeowners.
• India: India’s connected home market is growing as more consumers seek affordable smart devices for their homes. The focus is on low-cost smart appliances, such as air purifiers, lights, and security cameras. Companies like Amazon and Xiaomi are catering to this demand, offering budget-friendly solutions. Smart home adoption is expanding, especially in urban areas, as middle-class households increasingly prioritize convenience and security.
• Japan: In Japan, the connected home device market is highly sophisticated, with a focus on AI and robotics. The adoption of voice-controlled systems and robotic assistants is widespread. Smart homes integrate seamlessly with IoT, and technology is focused on enhancing quality of life through automation and advanced health and wellness solutions. Japan’s aging population also drives interest in smart devices for caregiving and elderly support.
Features of the Global Connected Home Device Market
Market Size Estimates: Connected home device market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Connected home device market size by type, application, and region in terms of value ($B).
Regional Analysis: Connected home device market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the connected home device market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the connected home device market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for connected home device market?
Answer: The global connected home device market is expected to grow with a CAGR of 6.8% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the connected home device market?
Answer: The major drivers for this market are the increasing demand for home automation solutions, the rising adoption of voice-controlled smart devices, and the growing need for energy-efficient connected appliances.
Q3. What are the major segments for connected home device market?
Answer: The future of the connected home device market looks promising with opportunities in the dwelling, business building, and hotel markets.
Q4. Who are the key connected home device market companies?
Answer: Some of the key connected home device companies are as follows:
• Phillips
• Samsung
• Schneider Electric
• Siemens
• Analog Devices
• General Electric
• Honeywell
• Johnson Controls
• LG Electronics
• Panasonic
Q5. Which connected home device market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, hybrid is expected to witness the highest growth over the forecast period.
Q6. In connected home device market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the connected home device market by type (device-based, mobile, and hybrid), application (dwelling, business building, hotel, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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