Smart homes feature trailblazing technologies at the forefront of the evolution of living spaces. Key features of these innovative homes have grown in popularity and continue to raise the bar, offering a blend of increased efficiency, convenience, and safety.
I reviewed statistics from Precedence Research, Fortune Business Insights, the Parks Associates’ Smart Home Dashboard, Angi, and ENERGY STAR to better understand popular smart home trends. The insights I’ve uncovered show smart homes are on the path to becoming more achievable for homeowners, whether they retrofit their existing houses or integrate smart home features into custom homes yet to be built.
Key Smart Home Statistics
- Globally, the smart home market was estimated to be worth $127.67 billion in 2024 and is forecasted to grow nearly 1,000% to $1.4 trillion by 2034, according to Precedence Research.
- Installing smart devices in your home can increase its resale value by 5%, per The CE Shop.
- Forty-five percent of internet-connected U.S. households have at least one smart home device, according to the Parks Associates’ Smart Home Dashboard.
- Although smart entertainment devices occupied the largest market share (29.5%) in 2023, safety and security saw the most significant growth of 151% from 2019–2023, according to Fortune Business Insights.
- Smart home system installation costs range from $205–$1,659, according to Angi.
What Is a Smart Home?
Imagine arriving at work and receiving an alert that your smart thermostat has adjusted the temperature to save energy. A few hours later, you get another alert that the water in your guest bathroom has automatically been shut off due to a detected leak. After making an appointment with a licensed plumber, you remotely unlock the front door to let them in using your home’s advanced security system.
Smart homes rely on home automation technology to complete various tasks, including those listed above. Their capabilities are enabled by the internet of things, a network of smart technologies that increase convenience, security, and energy efficiency in the home. By pairing multiple connected devices with an internet connection, homeowners can manage their houses more easily.
Smart Home Market Trends
The global smart home market was estimated at $127.67 billion in 2024, according to Precedence Research. Industry experts estimate the market size will increase to $1.4 trillion by 2034, reflecting a compound annual growth rate (CAGR) of 27.1% from 2025–2034.
Within the global smart home market, the North American segment comprises the largest share, at 35.62% in 2024, per Precedence Research. Specifically, the U.S. smart home market size was $36.38 billion in 2024 and is projected to reach $403.09 billion by 2034. This estimation represents a 27.19% CAGR.
Among U.S. households with internet access, 45% have at least one smart home device, according to the Parks Associates’ Smart Home Dashboard. Nearly one in five (18%) households have six or more smart home devices. In addition, integrating smart devices into the home can increase a property’s resale value by up to 5%.
Post-pandemic, consumers increasingly seek smart features as they spend more time on the internet and their smartphones, per Fortune Business Insights. Growing urbanization, the prevalence of digital assistants, and the prompt adoption of smart technology have contributed to the growth of the smart home market, according to Precedence Research. Additional growth factors include access to remote control, rising concerns about personal security and safety, and the option to personalize devices to enhance user experience.
AI in Smart Home Tech
Artificial intelligence (AI) play several roles in the smart home technology sphere, including the following per ByteSnap:
- Advanced personal security via data analysis and comparison of movement patterns to provide timely security alerts
- Energy management through optimized energy consumption to reduce environmental impact
- Personalized automation based on observed patterns and fuzzy logic to tailor outcomes to anticipated needs
- Remote health monitoring capabilities stemming from condition-based guidance, recommendation, and support via emergency services
- Successful execution of voice commands using machine learning, natural language processing, and natural language understanding to enhance convenience
The role of AI in smart home technology is not to replace every task but rather to integrate into and enhance consumers’ existing lives, according to CEPro. Yet, to be successful, AI must collect, analyze, and execute on exceedingly vast amounts of information regarding personal behaviors and preferences. Such a concentration of sensitive data is increasingly vulnerable to bad actors.
Data Privacy
Researchers at the New York University Tandon School of Engineering measured the amount of sensitive personal data bad actors can potentially retrieve from existing internet of things devices. Their findings were based on the numerous technological ways scammers can use cameras, microphones, and other features. The striking results demonstrated the inherent vulnerabilities of IoT devices, spurring the research team to share their findings with manufacturers, developers, and policymakers and urging them to address these alarming susceptibilities.
However, as the term “privacy paradox” suggests, consumer attitudes regarding personal data privacy can prove contradictory, according to a recent article. Consumers may be concerned about a data breach, but that doesn’t always translate into taking the necessary preventative measures. The trade-off between deciding whether to share sensitive data in order to benefit from smart home technology depends largely on four factors: the type of data involved, its purpose, how often it is shared, and the financial benefit to the consumer.
Common Smart Home Systems and Costs
Installing a smart home system costs between $205 and $1,659, according to Angi. Smart devices common in the average U.S. household include the following:
- Home appliances (HVAC and kitchen appliances)
- Lighting
- Safety and security systems
- Smart entertainment
In 2023, smart entertainment systems occupied the largest market share, at 29.5%, according to Fortune Business Insights. As you explore the benefits and return on investment of the smart home systems below, remember that final costs will depend on whether they are retrofitted or integrated into new construction.
Smart Safety and Security Devices
The safety and security segment of the smart home market grew 151% from 2019–2023, according to Fortune Business Insights. Home security equipment costs $400 on average, but homeowners can equip themselves with a basic home security system for only $30, according to Security.org. Compared to the $2,000 average loss during a burglary, these represent small investments.
Investing in a home security system entails installation, equipment, and monthly monitoring. Here are some of the cost factors associated with installing a popular home security system, per Security.org:
- Popular systems like ADT and Vivint must be installed by a professional, but several DIY options exist.
- Equipment for Cove’s home security system starts at $125 but can cost up to $600 or more at Vivint.
- Although you can opt for free monthly monitoring plans, most range from $20–$50.
A home security system offers numerous benefits, including crime prevention, personal safety, and peace of mind. In addition, homeowners who install a security system may be eligible for home insurance discounts. While a home security system’s influence on property value remains largely undefined, prospective buyers will likely appreciate the advantages of any existing systems.
Smart Home Appliances
Smart kitchen appliances range from $400–$10,000, according to Angi. Many of these smart appliances enable homeowners to control their functions via their smartphones, including turning them on and off and monitoring their status. Below are common smart kitchen appliances and their respective cost ranges, per Angi:
- Smart refrigerators: $2,000–$10,000
- Smart microwaves: $500–$1,500
- Smart ovens: $500–$3,000
- Smart dishwashers: $400–$1,600
Among smart kitchen appliances, smart refrigerators are perhaps the most advanced. Depending on the model, refrigerators can report on their contents, monitor expiration dates, or even create recipes incorporating what’s inside. However, these advanced features come with a tradeoff: Repairs tend to be costlier, so it’s worth looking into appliance insurance if you plan on purchasing a smart kitchen appliance soon.
Smart HVAC Systems
Replacing your HVAC system costs an average of $5,000–$12,500, according to Angi. Installing fully automated elements to your HVAC system — including smart ceiling fans and air conditioning — costs $800–$2,000 on average, per Angi.
Homeowners can also create HVAC zones to improve efficiency. Two-zone systems range from $1,700–$2,000, with each additional zone costing up to $500 on average, per Angi. If you plan on making any HVAC upgrades, consider purchasing a home warranty for HVAC systems specifically to protect your investment and keep your home comfortable when you face unexpected breakdowns.
Many homeowners opt for a smart thermostat, which costs an average of $70–$280 per Angi. Remotely controlling the temperature in your home via your smartphone can reduce your energy consumption and save you up to $50 (roughly 8% of your heating and cooling bills) annually, according to ENERGY STAR. Many smart HVAC systems also monitor energy usage and notify homeowners of maintenance reminders to boost energy efficiency.
Smart Lighting
A single smart light bulb costs $15, but a full home lighting upgrade can cost up to $3,000, according to Angi. With smart light bulbs, you can turn the lights on and off remotely with your smartphone or even change the lighting color. Homeowners can also install motion-activated lights — for an average of $350–$500 — to increase their home’s energy efficiency.
How To Choose the Right Smart Home System for You
Selecting the best smart home system begins with a plan. Determine what you’re trying to accomplish and how a smart home system can help you achieve it. For example, if you want to lower your utility bills, replacing your existing dishwasher can help you save on water and electricity.
Next, explore the corresponding smart products and systems available to you. Carefully review any instructions and specifications to ensure compatibility and evaluate longevity. If necessary, measure your internet speed and verify your Wi-Fi reach.
As you find ways to introduce smart products into your home, switch up your routine by automating minor elements with a single smart device. Effortless navigation and use, in addition to built-in modularity, can simplify the process. Finally, secure your personal data with robust privacy protocols.
