Smart Home Market Value & Industry Growth (2025-2032)

Smart homes are on the rise. And the global adoption of smart connected devices is increasing at a rapid rate.

There are several reasons behind the increased adoption – from new technology to affordable prices, and an abundance of user benefits.

Below we’ll dive into these smart home market stats:

• Smart Home Industry Highlights
• Smart Home Market Size
• Smart Home Market Growth Projections
• Growth Drivers In The Smart Home Space
• Key Players In The Smart Home Market
• Smart Home Market Geographic Breakdown
• Smart Home Industry Growth By Segment

Smart Home Industry Highlights

• The global smart home market is valued at almost $150 billion
• As of 2032, the smart home market is projected to surpass $630 billion
• The global smart home market is growing at a CAGR of 22.9%
• As a region, the Far East and China have the largest smart home market share
• Home security’s market share is set to increase by 6% in a seven-year period

Smart Home Market Size

According to the latest data, the global smart home market is worth an estimated $149.43 billion.

Improving technology, more affordable prices, and a desire for a connected home are some key reasons behind the market’s rapid growth.

Data shows that smart home consumer spending has grown from $86 billion in 2020 to approximately $150 billion in 2025.

And according to Strategy Analytics, market spending is likely to increase to $173 billion worldwide in 2025 – around double 2020’s figure.

Sources: Fortune Business Insights, Strategy Analytics

Smart Home Market Growth Projections

The worldwide smart home market is valued at $149.43 billion in 2025.

The smart home space is expected to climb to $633.2 billion by 2032 at a compound annual growth rate (CAGR) of 22.9%.

Here’s a look at predicted smart home market growth over the next decade:

Source: FutureMarketInsights

Growth Drivers in the Smart Home Space

Advancements in security technology are a primary driver within the smart home market.

Additionally, the increase of Internet of Things (IoT) devices has lent itself to greater connectivity within the home. And in recent years, smart devices have become more affordable, accelerating adoption further.

Refinements in safety, interconnectivity, and customization as well as less prohibitive prices are likely to continue to drive the market to new heights.

Source: FutureMarketInsights

Key Players in the Smart Home Market

• Samsung (South Korea)
• Huawei (China)
• Qualcomm (US)
• Alphabet (US)
• LG Electronics (South Korea)
• Microsoft (US)
• Beijing Didi Technology (China)
• Xiaomi (China)
• eBay (US)
• Midea (China)
• Intel (US)
• ZTE (China)
• Gree Electric Appliances (China)
• Snap Inc. (US)
• Alibaba (China)
• Amazon (US)
• Philipps (US)
• Google (US)
• Apple (US)
• IKEA (Sweden)
• Siemens (Germany)
• Bosch (Germany)
• Belkin (US)

Source: iplytics, The Buddy Company

Smart Home Market Geographic Breakdown

Broken down by region, the Far East and China have the largest current smart home market share. The region ships around 521.8 million smart home units – almost twice as many as Europe (283.1 million) and North America (250 million).

Here’s a closer look at the data:

Year	The Far East and China	Europe	North America	Latin America	Rest of World
2020	140.5 million	81.2 million	75.7 million	9.5 million	42.2 million
2021*	220.9 million	119.6 million	118.6 million	14.3 million	63.7 million
2022*	289.8 million	165.6 million	151.6 million	21.3 million	89.1 million
2023*	375 million	219.6 million	192.5 million	31 million	121.8 million
2024*	521.8 million	283.1 million	250 million	45 million	175.8 million
2025*	726.7 million	384.9 million	329.2 million	68.8 million	260.9 million

Source: Juniper Research

Smart Home Industry Growth by Segment

Consumer spending on smart home-related devices is on the rise.

Here is a more detailed look at the figures:

Year	Consumer Spending
2019	$95 billion
2020	$86 billion
2021*	$123 billion
2022*	$134 billion
2023*	$147 billion
2024*	$159 billion
2025*	$173 billion

Broken down by segment, video entertainment holds the single largest share of the market.

Although, this figure is dropping:

Year	Video Entertainment	Home Security	Smart Speaker	Others
2018	48.2%	15.2%	15.5%	21.1%
2019	41.7%	19.2%	16.5%	22.5%
2020	37%	20.5%	16.3%	26.2%
2023*	29.9%	22.1%	14.3%	33.7%
2024*	31.3%	21.1%	14.1%	33.5%
2025*	27.6%	21.2%	14.4%	36.9%

Home security is one of the fastest-growing segments within the smart home space.

Here are the numbers:

Year	Global Smart Home Security Revenue
2018	$2.14 billion
2019	$2.6 billion
2020	$2.49 billion
2021	$2.69 billion
2022*	$3.27 billion
2023*	$4.3 billion
2025*	$5.05 billion

_{*Predicted figures}

While digital voice assistants were predicted to double from around 4.2 billion in 2020 to 8.4 billion in 2024.

Sources: Strategy Analytics, BRC, Juniper Research

Key Takeaways

The smart home market is growing quickly in value year over year.

And an increased adoption of smart home products only facilitates the ability to acquire a truly connected home, further elevating the market.

For more content related to smart homes, take a look at our Smart Home Statistics post.