With the increasing adoption of connected devices, smart appliances, and AI-enabled platforms, homeowners require centralised systems capable of monitoring security, energy usage, and household activities seamlessly. As broadband penetration expands and smart housing developments rise, consumers are investing in interoperable ecosystems that support lighting, HVAC, entertainment, and access control within a unified interface. This is driving increased deployment of IoT-enabled sensors, cloud-based management platforms, and intelligent control systems capable of operating in dynamic residential environments. As households prioritise energy efficiency, security, and convenience, demand for scalable, reliable, and automation-ready smart home solutions continues to grow steadily across regions.

Entertainment segment motivates the growth

The entertainment and other controls product segment held the largest share of the smart home market in 2025, driven by widespread adoption of connected entertainment devices and centralized control systems across residential households. Smart speakers, streaming devices, home hubs, and integrated control platforms form the backbone of connected living environments, enabling seamless management of lighting, audio-visual systems, and other smart devices. 

Retrofit installations holds most potential 

The retrofit installations segment is projected to register faster growth than the new installations segment in the smart home market between 2026 and 2032, supported by the vast existing base of traditional residential properties seeking digital upgrades. Homeowners are increasingly integrating smart lighting, HVAC controls, security systems, and energy management devices into pre-existing infrastructure to enhance efficiency and convenience without major structural modifications. Advancements in wireless connectivity, plug-and-play devices, and app-based configuration are simplifying installation processes and reducing deployment costs. As awareness of energy optimisation and home security continues to rise, retrofit installations are expected to witness accelerated adoption across developed and emerging markets.

Major players

Some of the major players operating in the smart home market and named within the research include big names such as Johnson Controls, Schneider Electric, Siemens, Assa Abloy, Amazon, Apple, ADT, Bosch and ABB.