How fast is the home automation market expected to grow?

Between 2025 and 2030, the market is projected to expand at a 12.70% CAGR, reaching USD 190.09 billion. Read More

What connectivity technology will dominate future deployments?

Thread-based wireless meshes paired with the Matter standard are expected to capture the majority of new device shipments. Read More

Why are installation costs still a barrier?

Professional whole-home systems often require electrical rewiring and integrator labor, pushing total costs to USD 15,000–50,000 before rebates. Read More

Home Automation Market Size, Forecast, Growth Drivers 2025

Name: Home Automation Market Size, Forecast, Growth Drivers 2025 – 2030
Creator: Mordor Intelligence
License: https://www.mordorintelligence.com/privacy-policy

Study Period	2019 - 2030
Market Size (2025)	USD 104.58 Billion
Market Size (2030)	USD 190.09 Billion
Growth Rate (2025 - 2030)	12.70% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Low
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Home Automation Market Analysis by Mordor Intelligence

The home automation market was valued at USD 104.58 billion in 2025 and is forecast to reach USD 190.09 billion by 2030, delivering a 12.70% CAGR. Maturity is accelerating as infrastructure-level innovations—especially the Matter protocol and energy-autonomous sensors—replace flashy one-off device launches as the main growth engine. Government incentives for energy retrofits, aging-in-place healthcare needs, and interoperability breakthroughs combine to widen addressable demand and lower installation friction. North America still leads in revenue today, but Asia-Pacific’s manufacturing muscle and ecosystem depth make it the fastest grower, while Europe’s strict energy and cybersecurity rules steer product design globally. Competitive intensity remains high because incumbents and digital giants pursue divergent revenue models, yet no single firm controls more than a mid-single-digit share, keeping price and feature differentiation fluid.

Key Report Takeaways

By application, safety and security led with 44.20% revenue share in 2024; smart kitchen products are projected to expand at a 17.90% CAGR to 2030.
By connectivity technology, wireless solutions held 62.50% of the home automation market share in 2024, while the same segment is advancing at a 21.40% CAGR through 2030.
By component, hardware devices accounted for 51.80% of the home automation market size in 2024; software and platforms are expected to post the fastest 16.90% CAGR during 2025-2030.
By type, mainstream installations captured 53.60% of 2024 revenue, whereas DIY solutions are projected to grow at an 18.50% CAGR to 2030.
By geography, North America retained 36.40% of 2024 revenue; Asia-Pacific is forecast to lead growth at 14.70% CAGR through 2030.

Global Home Automation Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Rising demand for IoT device interoperability	+2.8%	Global, with early adoption in North America and EU	Medium term (2-4 years)
Integration of AI and ML in next-gen products	+3.2%	Global, led by North America and China	Short term (≤ 2 years)
Emergence of Matter standard for interoperability	+2.1%	Global, with strongest impact in developed markets	Medium term (2-4 years)
Energy-autonomous sensors cutting maintenance costs	+1.9%	Global, with highest impact in remote installations	Long term (≥ 4 years)
Aging-in-place healthcare automation demand	+1.7%	North America and EU, expanding to Asia-Pacific	Long term (≥ 4 years)
Subsidy programs for energy-efficient retrofits	+2.4%	North America, EU, select Asia-Pacific markets	Short term (≤ 2 years)
Source: Mordor Intelligence

Rising demand for IoT device interoperability

The Thread 1.4 specification published in 2024 removes the need for multiple hubs by enabling devices from different brands to join a single IPv6-based mesh network. Field trials show that Thread-enabled devices sustain connections among hundreds of nodes with lower power draw, thereby tackling both scalability and energy concerns. Manufacturers report 40% higher customer-satisfaction scores for Thread products, confirming user appetite for a seamless ecosystem. As more devices become protocol-agnostic, the home automation market gains momentum from mainstream buyers who previously resisted vendor lock-in.

Integration of AI and ML in next-gen products

Samsung’s Vision AI, unveiled at CES 2025, converts ordinary screens into ambient companions that learn routines and automate tasks without manual programming ^{[1]Samsung Electronics, “Vision AI Unveiled at CES 2025,” news.samsung.com}. Google’s Gemini intelligence inside Nest devices performs on-device processing to optimize energy use and security responses in real time. Local inference sidesteps privacy worries tied to constant cloud access and boosts latency-sensitive functions. Continuous learning makes smart homes proactive rather than reactive, improving user experience while raising switching costs in the home automation market.

Emergence of Matter standard for interoperability

Apple joined Samsung and Amazon in extending Matter support to new product categories in 2025, including robotic vacuums and major appliances. Certification data show more than 670 Thread-certified products today, and 58% of Thread Group members plan annual launches, pointing to rapid portfolio refresh cycles. By converging software, connectivity, and device discovery under a single open standard, Matter lowers developer overhead, accelerates time-to-market, and broadens the pie for every participant in the home automation market.

Energy-autonomous sensors cutting maintenance costs

Ambient harvesting modules now draw power from light, thermal gradients, or electromagnetic fields, allowing sensors to operate indefinitely without batteries. Telefónica Tech pilots have demonstrated a 95% reduction in maintenance visits for condition-monitoring nodes powered this way, saving labor and extending coverage to hard-to-reach spots ^{[2]Telefónica Tech, “Condition Monitoring Pilot Cuts Maintenance Visits by 95%,” telefonicatech.com}. Self-powered sensing lowers total cost of ownership and unlocks dense deployments that were cost-prohibitive, boosting demand for retrofit packages in the home automation market.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
High upfront installation costs	-2.1%	Global, with highest impact in price-sensitive markets	Short term (≤ 2 years)
Cybersecurity and data-privacy concerns	-1.8%	Global, with strongest impact in EU and North America	Medium term (2-4 years)
Fragmented regulatory standards	-1.3%	Global, with regional variations	Long term (≥ 4 years)
Semiconductor supply-chain volatility	-1.6%	Global, with highest impact on hardware segments	Short term (≤ 2 years)
Source: Mordor Intelligence

High upfront installation costs

Whole-home professional systems start around USD 15,000 and can exceed USD 50,000, a price tag that keeps adoption concentrated among high-income households. Hardware accounts for only a fraction of that total since electrical rewiring, network upgrades, and integrator fees often add 200-300%. DIY kits alleviate the barrier, but mid-market buyers still hesitate. Rebates such as Ontario’s 30% incentive for smart thermostats, effective January 2025, narrow the gap yet cover only energy modules rather than full automation. Cost headwinds push suppliers to modular designs and financing plans, but near-term growth in the home automation market remains sensitive to economic cycles.

Cybersecurity and data-privacy concerns

The UK’s Product Security and Telecommunications Infrastructure Act, enforced since April 2024, bans default passwords and mandates patch commitments. The EU Cyber Resilience Act, due December 2027, imposes similar duties plus mandatory vulnerability disclosure. Compliance raises development expense, especially for small brands, and the risk of data breaches deters cautious consumers. Vendors increasingly bundle security updates as paid services, inflating ownership cost and slowing demand in the home automation market.

Segment Analysis

By Application: Security Dominates While Kitchens Cook Up Growth

Safety and security systems commanded 44.20% of 2024 revenue, confirming that peace of mind still tops consumer priorities in the home automation market. Adoption rose as insurers offered premium discounts for certified alarms and smart locks. The segment monetizes through hardware, cloud storage, and emergency response subscriptions, anchoring recurring cash flows. Parallel momentum comes from aging-in-place packages that blend fall detection with intrusion alerts, reinforcing future security revenue streams.
Smart kitchen solutions are forecast to grow at a 17.90% CAGR by 2030. Appliance makers weave AI into ovens that auto-regulate cooking curves and into refrigerators that track inventory and trigger e-grocery orders. GE Appliances’ Flavorly AI platform exemplifies this shift by linking recipe generation with automated restocking. As utility converges with convenience, consumers migrate budget from discretionary gadgets to everyday meal prep, keeping the home automation market diversified across necessity and novelty.

Home Automation Market: Market Share by Application — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By Connectivity Technology: Thread-Powered Wireless Gains Ground

Wireless networks held 62.50% of 2024 revenue and are projected to clock 21.40% CAGR. Thread meshes extend range when each node doubles as a repeater, which solves dead-spot frustrations and reduces gateway costs. Matter certification cements Thread as the default for low-latency control traffic, while Wi-Fi maintains the pipe for video. As mobile platforms embed Thread radios natively, setup times fall, spurring uptake in the home automation market.
Wired protocols stay relevant for power-hungry or mission-critical endpoints such as shutters and high-draw cameras. Emerging Ultra-Wideband locks deliver centimeter-level presence detection for hands-free entry, enhancing security without sacrificing battery life. BLE continues to bridge smartphones with door access and occupancy triggers. Suppliers therefore pursue multi-radio chips to future-proof designs, balancing bandwidth, energy, and cost targets for the broadening home automation market.

By Component: Platforms Outpace Devices

Hardware still generated 51.80% of 2024 revenue, but software and platforms will rise at 16.90% CAGR as vendors pivot to subscriptions. Samsung’s SmartThings community grew to 350 million registered users by August 2024, illustrating the scale advantages of cloud orchestration. Edge AI lets devices process data locally yet sync improved models to the cloud, creating virtuous cycles of performance gains and user lock-in.
Commoditization is squeezing sensor margins, pushing manufacturers toward integration. Boards now combine sensing, actuation, and compute, trimming bill-of-materials and installation complexity. Gateways gradually disappear because every appliance doubles as a node. Service providers bundle firmware, monitoring, and predictive maintenance for a monthly fee, converting one-time device buyers into annuity streams within the home automation market size for managed offerings.

Home Automation Market: Market Share by Component — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By Type: DIY Momentum Reconfigures Value Chains

Mainstream professionally installed systems kept 53.60% share in 2024, yet DIY solutions will grow fastest at 18.50% CAGR. Manufacturers release plug-and-play packages with app-guided pairing that mirrors smartphone onboarding. Influencer videos and peer forums reduce perceived risk, and retailers stock cross-brand starter kits to demystify choices. This evolution enlarges the home automation market by meeting middle-income budgets without installers.
Service integrators respond by pivoting to hybrid models: they design the blueprint, ship pre-configured kits, and provide remote commissioning for a fee.
Luxury integrators remain safe in ultra-custom theaters and whole-estate controls, but volume shifts toward mass-market bundles. New entrants court do-it-yourselfers with open APIs, hoping community developers extend functionality and cement mindshare across the expanding home automation market.

Geography Analysis

North America accounted for 36.40% of global revenue in 2024. Federal incentives under the USD 8.8 billion Inflation Reduction Act reimburse smart thermostats and load-shifting equipment, amplifying mainstream adoption. Market penetration of 40-plus devices per household in affluent suburbs signals approaching saturation, yet retrofit demand from older housing stock maintains volume. Mexico shows rising sales through big-box retailers that bundle smart lighting with solar panels, hinting at cross-category synergies hot-wiring the home automation market.
Asia-Pacific is expected to record a 14.70% CAGR, the fastest globally. Chinese brands exploit scale economies to price below Western incumbents. Japan channels automation toward eldercare robotics that monitor vitals and send alerts to digital clinics, combining cultural acceptance with demographic urgency. South Korea tests 10 Gbps fiber backbones that remove bandwidth ceilings, letting developers trial mixed-reality overlays inside smart homes. India’s government-backed smart city rollouts seed pilot neighborhoods with subsidized IoT kits, but affordability still dictates stripped-down feature sets, forcing vendors to innovate on cost.
Europe maintains steady mid-single-digit expansion. The UK’s security-by-design law raised compliance costs yet boosted consumer trust and drove a surge in certified device sales. Germany links heat-pump subsidies to smart controls, ensuring that connected HVAC shipments outpace unconnected units. France pilots dynamic electricity tariffs transmitted by Linky smart meters, incentivizing home energy management adoption. The upcoming EU Cyber Resilience Act will propagate European security benchmarks globally, indirectly helping local firms that already design for stringent rules compete in the worldwide home automation market.

Home Automation Market CAGR (%), Growth Rate by Region — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

Fragmentation defines the current stage because hardware, software, and services still evolve on separate clocks. Honeywell leverages decades of building-automation expertise to win mixed-use projects and high-end residences, reporting 8% organic growth in its building solutions segment for Q1-2025 ^{[3]Honeywell, “Q1 2025 Earnings Presentation,” honeywell.com}. Amazon counters by converting its voice assistant installed base into paid software with Alexa+ at USD 19.99 per month, deepening customer data moats and recurring revenue. Samsung broadens SmartThings from phones to appliances, aiming to lock households inside a vertically integrated ecosystem in the home automation market.
Consolidation is accelerating among mid-tier players seeking scale advantages. Resideo’s USD 1.4 billion purchase of Snap One expanded its professional installer channel while adding a catalog of security and AV gear. LG acquired Athom to infuse its appliance lineup with a cloud-agnostic control hub, illustrating the importance of platform independence. Private equity interest rises as predictable subscription cash flows mature, turning former gadget sellers into software-as-a-service portfolios.
Niche innovators hold valuable intellectual property that incumbents lack. Firms specializing in ultra-wideband presence detection, energy-harvesting chips, or edge-native AI algorithms receive strategic funding to plug gaps in broader roadmaps. Thread Group’s 200-plus members coordinate specification updates, ensuring no proprietary stack erects new lock-ins and thereby keeping rivalry centered on experience, not connectivity. Collectively, the top 10 players captured under 30% of 2024 revenue, reinforcing the mid-fragmented profile of the home automation market.

Home Automation Industry Leaders

Honeywell International Inc.
Samsung Electronics Co., Ltd.
Schneider Electric SE
Amazon.com, Inc.
Google LLC
*Disclaimer: Major Players sorted in no particular order

Home Automation Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

April 2025: Panasonic India opened a Smart Home Experience Centre designed around wellness, security, and convenience themes.
February 2025: Honeywell announced plans to spin off its Automation division into a separate public company by 2026 to sharpen strategic focus.
January 2025: Universal Electronics Inc. launched QuickSet homeSense technology featuring on-device learning for energy optimization and adaptive security.
January 2025: Samsung introduced Vision AI at CES 2025, turning screens into AI companions integrated with SmartThings for real-time insights.

Table of Contents for Home Automation Industry Report

1. INTRODUCTION

1.1 Market Definition and Study Assumptions
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Rising demand for IoT device interoperability
- 4.2.2 Integration of AI and ML in next-gen products
- 4.2.3 Emergence of Matter standard for interoperability
- 4.2.4 Energy-autonomous sensors cutting maintenance costs
- 4.2.5 Aging-in-place healthcare automation demand
- 4.2.6 Subsidy programs for energy-efficient retrofits
4.3 Market Restraints
- 4.3.1 High upfront installation costs
- 4.3.2 Cybersecurity and data-privacy concerns
- 4.3.3 Fragmented regulatory standards
- 4.3.4 Semiconductor supply-chain volatility
4.4 Value / Supply-Chain Analysis
4.5 Evaluation of Critical Regulatory Framework
4.6 Impact Assessment of Key Stakeholders
4.7 Technological Outlook
4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes
- 4.8.5 Intensity of Competitive Rivalry
4.9 Impact of Macro-economic Factors

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Application
- 5.1.1 Lighting
- 5.1.2 Safety and Security
- 5.1.3 HVAC and Energy Management
- 5.1.4 Entertainment (Audio and Video)
- 5.1.5 Smart Kitchen
- 5.1.6 Smart Window Coverings
- 5.1.7 Others
5.2 By Connectivity Technology
- 5.2.1 Wired
- 5.2.2 Wireless
- 5.2.2.1 Wi-Fi
- 5.2.2.2 Zigbee
- 5.2.2.3 Z-Wave
- 5.2.2.4 Bluetooth / BLE
- 5.2.2.5 Thread
5.3 By Component
- 5.3.1 Hardware Devices
- 5.3.1.1 Sensors
- 5.3.1.2 Actuators and Controllers
- 5.3.1.3 Smart Hubs and Gateways
- 5.3.2 Software and Platforms
- 5.3.3 Services
- 5.3.3.1 Installation and Integration
- 5.3.3.2 Managed and Subscription Services
5.4 By Type
- 5.4.1 Luxury
- 5.4.2 Mainstream
- 5.4.3 DIY
- 5.4.4 Managed
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 Germany
- 5.5.3.2 United Kingdom
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 Russia
- 5.5.3.7 Rest of Europe
- 5.5.4 Asia-Pacific
- 5.5.4.1 China
- 5.5.4.2 Japan
- 5.5.4.3 India
- 5.5.4.4 South Korea
- 5.5.4.5 Australia and New Zealand
- 5.5.4.6 Rest of Asia-Pacific
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.1.1 Saudi Arabia
- 5.5.5.1.2 United Arab Emirates
- 5.5.5.1.3 Turkey
- 5.5.5.1.4 Rest of Middle East
- 5.5.5.2 Africa
- 5.5.5.2.1 South Africa
- 5.5.5.2.2 Nigeria
- 5.5.5.2.3 Egypt
- 5.5.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
- 6.4.1 ADT Inc.
- 6.4.2 Resideo Technologies, Inc.
- 6.4.3 Control4 Corporation (Snap One Holdings Corp.)
- 6.4.4 Crestron Electronics, Inc.
- 6.4.5 Samsung Electronics Co., Ltd.
- 6.4.6 Siemens AG
- 6.4.7 Johnson Controls International plc
- 6.4.8 Honeywell International Inc.
- 6.4.9 Schneider Electric SE
- 6.4.10 Legrand SA
- 6.4.11 Robert Bosch GmbH
- 6.4.12 Amazon.com, Inc.
- 6.4.13 Google LLC
- 6.4.14 Apple Inc. (HomeKit)
- 6.4.15 Vivint Smart Home, Inc.
- 6.4.16 Alarm.com Holdings, Inc.
- 6.4.17 Ecobee Inc.
- 6.4.18 Signify N.V. (Philips Hue)
- 6.4.19 Lutron Electronics Co., Inc.
- 6.4.20 Somfy SA
- 6.4.21 Arlo Technologies, Inc.
- 6.4.22 TP-Link Technologies Co., Ltd. (Kasa)
- 6.4.23 Aqara (Lumi United Technology Co., Ltd.)
- 6.4.24 Wyze Labs, Inc.
- 6.4.25 Logitech International S.A.
- 6.4.26 August Home, Inc.
- 6.4.27 Hubitat, Inc.
- 6.4.28 Wink Labs Inc.

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

7.1 White-space and Unmet-need Assessment

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Global Home Automation Market Report Scope

Home automation solutions enable devices to trigger one another autonomously, eliminating human intervention. Additionally, users can schedule automated tasks, such as adjusting lighting, regulating temperature, and fine-tuning entertainment systems.

The study tracks the revenue accrued through the sale of home automation products by various players across the globe. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.

The home automation market is segmented by application (lighting, entertainment (audio and video), heating, ventilation and air conditioning, safety and security, and others), connectivity type (online and offline), and geography (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The market sizes and forecasts regarding value (USD) for all the above segments are provided.

By Application	Lighting
	Safety and Security
	HVAC and Energy Management
	Entertainment (Audio and Video)
	Smart Kitchen
	Smart Window Coverings
	Others
By Connectivity Technology	Wired

	Wireless	Wi-Fi
		Zigbee
		Z-Wave
		Bluetooth / BLE
		Thread

By Component	Hardware Devices	Sensors
		Actuators and Controllers
		Smart Hubs and Gateways
	Software and Platforms

	Services	Installation and Integration
		Managed and Subscription Services
By Type	Luxury
	Mainstream
	DIY
	Managed

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Rest of South America

	Europe	Germany
		United Kingdom
		France
		Italy
		Spain
		Russia
		Rest of Europe

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

	Middle East and Africa	Middle East	Saudi Arabia
			United Arab Emirates
			Turkey
			Rest of Middle East

		Africa	South Africa
			Nigeria
			Egypt
			Rest of Africa

By Application

Lighting

Safety and Security

HVAC and Energy Management

Entertainment (Audio and Video)

Smart Kitchen

Smart Window Coverings

Others

By Connectivity Technology

Wired
Wireless	Wi-Fi
	Zigbee
	Z-Wave
	Bluetooth / BLE
	Thread

By Component

Hardware Devices	Sensors
	Actuators and Controllers
	Smart Hubs and Gateways
Software and Platforms
Services	Installation and Integration
	Managed and Subscription Services

By Type

Luxury

Mainstream

DIY

Managed

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Rest of South America
Europe	Germany
	United Kingdom
	France
	Italy
	Spain
	Russia
	Rest of Europe
Asia-Pacific	China
	Japan
	India
	South Korea
	Australia and New Zealand
	Rest of Asia-Pacific

Middle East and Africa	Middle East	Saudi Arabia
		United Arab Emirates
		Turkey
		Rest of Middle East

	Africa	South Africa
		Nigeria
		Egypt
		Rest of Africa