South America Smart Home Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South America Smart Home Market Trends and Insights

Rising Broadband, Smartphone, and Connected-Home Penetration

Household connectivity provides the South America Smart Home Market with a larger base of connected devices. Reported that 93.6% of Brazilian households had internet access in 2024, while fixed broadband reached 88.9% of connected homes.^{[1]Instituto Brasileiro de Geografia e Estatística, “Internet Is Present in 74.9 Million Households in Brazil,” IBGE News Agency, agenciadenoticias.ibge.gov.br} The same survey counted 13.5 million Brazilian homes with at least 1 smart device, after an increase of 1.9 million homes in 1 year. This installed base supports both first purchases and later additions such as cameras, lamps, and sensors. Better network access also makes lower-cost Wi-Fi products practical for households that do not want a complex installation.

Growing Demand for Residential Security and Remote Monitoring

Security demand remains a direct driver for the South America Smart Home Market because cameras, locks, and alarms solve visible household concerns. Brazil’s electronic security sector included 33,000 companies in 2025, showing the scale of the existing distribution and installer base.^{[2]Associação Brasileira das Empresas de Sistemas Eletrônicos de Segurança, “Regulamentação do Estatuto da Segurança Privada é Assinada e Redefine Mercado Bilionário de Segurança Eletrônica no Brasil,” ABESE, abese.org.br} Connected security products can be added gradually, which lowers the initial commitment for buyers. A camera or digital lock can also introduce a household to broader automation without requiring a full system purchase. Suppliers that pair easy installation with dependable monitoring are better placed to turn security buyers into repeat customers.

Energy-Cost Management and Distributed-Energy Integration

Rooftop solar creates a practical use case for smart energy controls in the South America Smart Home Market. Solfácil introduced Solfácil Smart in 2025 to monitor residential solar generation, consumption, and savings in real time. A connected household can use monitoring tools to schedule loads when solar output is available. This ties controllers and HVAC settings to a household financial decision rather than to a convenience purchase. The opportunity is strongest where residential solar is established, and households can see the value of controlling consumption.

Smart Appliance and Voice-Control Adoption

Connected appliances and voice controls widen the South America Smart Home Market beyond security systems. Voice interfaces allow users to operate lights, appliances, and entertainment equipment without learning separate controls for each device. The effect is strongest when products support Portuguese or Spanish commands and integrate with the platforms already used at home. Suppliers can reduce purchase friction by selling starter bundles that combine a speaker with basic devices. The category still depends on value-focused offers because appliances cost more than entry-level sensors or lighting products.

High Upfront Retrofit and Professional-Installation Costs

Retrofit work can slow the South America Smart Home Market because much of the residential stock was not designed for connected systems. Older homes may lack suitable wiring, hub locations, or compatible switch boxes. Professional installation can raise the total cost and place integrated systems beyond many middle-income households. This creates a split between premium installations and simpler do-it-yourself products. Wireless products that avoid rewiring can reduce this barrier, but they may not provide every function sought in a whole-home system.

Cybersecurity, Privacy, and Trust Concerns

Data protection concerns can delay purchases in the South America Smart Home Market, especially for cameras and devices that collect household information. Brazil requires cybersecurity provisions for relevant telecommunications equipment under the Anatel Act 77/21, which makes compliance a commercial requirement for vendors. Clear data practices and reliable software updates can help suppliers address buyer concerns. Smaller vendors may face a longer path to meet technical and documentation requirements. The issue also favors devices and services that make privacy controls visible to users.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Components: Security Hardware Leads, While Healthcare Supports Growth

Access Control, Safety, and Security accounted for 38.12% of the South America Smart Home Market in 2025. Cameras, alarms, smart locks, smoke detectors, and monitoring devices serve a direct need for protection in private homes and shared residential spaces. The group also benefits from established security distributors and installers who can recommend products, configure systems, and provide post-installation support. Cloud-managed panels are useful to professional installers because they support monitoring and maintenance needs across multiple customer locations. Consumer Electronics, including smart speakers, home theater systems, and air purifiers, is another important component group because it brings familiar connected products into homes.

Smart-Home Healthcare is forecast to grow at a 20.41% CAGR through 2031. The category includes remote monitoring products that can support older adults and patients who require regular observation, while keeping care linked to the home. In March 2026, InCor began a 200-patient trial of a smart cardiac wristband with Arqia, and commercialization is planned for 2027. Lighting, energy management, climate controls, controllers, and hubs can grow alongside security as users add products and connect separate device categories over time. Smart kitchen products remain small in size, but developer-led housing projects can introduce them to buyers through preselected bundles.^{[3]Agência Nacional de Telecomunicações, “Ato Nº 77, de 5 de Janeiro de 2021,” ANATEL, informacoes.anatel.gov.br}

By Housing Type: Single-Family Homes Lead, While Multifamily Buildings Gain Ground

Single-Family Dwelling held 74.23% of the South America Smart Home Market share in 2025. Detached-home owners have more flexibility to add outdoor cameras, lighting, access controls, and climate products without requiring approval from a building manager. These homes can support gradual do-it-yourself upgrades as well as professionally integrated systems, which gives vendors multiple ways to reach the same household. Security products are particularly suited to homes with exterior areas, garages, gates, and separate points of entry. The segment, therefore, remains central to near-term device volumes and to the coverage strategies used by retailers and installation companies.

Multifamily Dwelling is forecast to expand at a 21.27% CAGR through 2031. Developers can add connectivity, access control, shared cameras, and building management features before residents move in, reducing the complexity of later installations. Housi stated in January 2026 that it was targeting more than 400,000 apartments with embedded technology across 80 cities and 17 Brazilian states. This model provides a ready foundation for residents to add personal devices after occupancy, rather than starting with basic infrastructure work. Suppliers that establish developer relationships can create repeat demand across multiple residential projects and build an installed base for later upgrades.

By Installation Type: Retrofits Dominate, While New Construction Favors Integrated Systems

Retrofit accounted for 66.41% of the South America Smart Home Market size in 2025. Existing homes form the largest addressable base because most residential buildings were completed before smart-home wiring, dedicated hub locations, and integrated connectivity became common. Wi-Fi and Thread products reduce the need for major electrical work, allowing buyers to introduce sensors, lamps, cameras, and speakers in stages. This setting favors devices with clear setup instructions, dependable wireless performance, and straightforward compatibility with common household networks. It also gives security installers a substantial opportunity to provide individual product installations and later expand systems for existing customers.

New Construction is forecast to expand at a 20.68% CAGR through 2031. Pre-installation lets developers include network coverage, wiring, controllers, and access systems before handover, when the cost and disruption of installation are lower. Vivo expanded partnerships with property developers in July 2025 to provide connectivity and smart-home services in new residential projects. Bulk procurement can support more standardized equipment choices, consistent handover packages, and wider deployment of products that would be difficult to retrofit later. The model can raise system value per unit, although it makes vendors more dependent on a limited number of developer relationships.

By Sales Channel: Offline Expertise Remains Important as Online Sales Expand

Offline held 58.72% of the South America Smart Home Market share in 2025. Specialist distributors, physical retailers, and installers remain important for equipment that needs technical advice, product demonstrations, or on-site configuration. Buyers often seek help with cameras, alarms, controllers, and integrated systems because performance depends on device placement and network conditions. The channel also supports project-specific sourcing for condominiums, larger homes, and security installations with several devices. These strengths keep offline channels relevant even as consumer awareness rises and product information becomes easier to find online.

Online sales are forecast to grow at a 21.14% CAGR through 2031. Digital storefronts let buyers compare compatible products, select smaller starter bundles, and access products outside specialist store service areas. The channel benefits when suppliers provide clear product descriptions, setup guidance, and post-purchase support that reduces uncertainty for first-time buyers. It will not remove the need for installers, since many customers will still need help with integrated systems or more demanding electrical work. Vendors that provide installers with practical online ordering tools can connect the two routes rather than having them compete for the same customer.

By Connectivity Technology: Wi-Fi Leads, While Thread Expands Device Options

Wi-Fi held 71.84% of the South America Smart Home Market share in 2025. Most connected households already use broadband routers, which makes Wi-Fi devices familiar, easy to find, and straightforward for many buyers to set up. It supports cameras, speakers, displays, and appliances that need higher data capacity or continuous connection to household networks. Wi-Fi is often the practical first choice for consumers who want to add 1 device at a time without committing to a dedicated system. Its large installed base also helps suppliers offer broad compatibility with leading smart-home platforms and familiar mobile platforms. 

The thread is forecast to grow at a 20.92% CAGR through 2031. It is suited to low-power products such as sensors, locks, bulbs, and smoke detectors, where battery life is central to the user experience. The Thread Group reported 240 members and more than 1,090 certified products in its 2025 annual report. Matter support can help devices from different suppliers work together, reducing concerns that a household is locked into a proprietary system. Zigbee, Z-Wave, Bluetooth Low Energy, and powerline connections also retain roles in which installer preferences, proximity functions, or building materials shape the best technical approach.^{[4]Thread Group, “Thread Group 2025 Annual Report,” Thread Group, threadgroup.org}

By Application: Safety Leads, While Assisted Living Gains Relevance

Safety and Security accounted for 36.59% of the South America Smart Home Market in 2025. Video doorbells, connected cameras, alarms, and motion sensors solve a direct household problem and can be purchased without committing to extensive automation. The application benefits from a large base of electronic security distributors, professional installers, and retailers who have experience explaining surveillance and access products. It can also introduce households to lighting, access control, and other connected functions once a camera or lock has been installed. This makes safety a practical entry application for many first-time buyers who want visible value from their first connected device.

Assisted Living and Home Healthcare is forecast to grow at a 20.46% CAGR through 2031. The application includes medical alerts, smart monitors, and connected tools that can help users and caregivers follow health needs at home. Dong-A ST signed a distribution agreement with CARDIOS in May 2026 for its HiCardi+ remote monitoring device in Brazil. Energy management is gaining relevance where solar-equipped homes need better visibility over generation and consumption patterns. Entertainment, climate control, and smart kitchen products create further opportunities as households move from a single use case to a broader connected setup.

Geography Analysis

Brazil held 47.16% of the South America Smart Home Market share in 2025. Its large connected population, established security supply chain, and wide choice of wireless products give it the strongest base in South America. Reported that 93.6% of Brazilian households had internet access in 2024. The country also had 13.5 million homes with at least 1 smart device during that year. Demand runs from professionally installed systems in major cities to entry-level Wi-Fi devices that consumers buy online for their own homes.

Colombia is forecast to grow at a 21.81% CAGR through 2031. Bogotá and Medellín combine connected urban households with demand for residential access control, monitoring, and devices that work with local installer support. Local suppliers can benefit when Spanish-language interfaces and service partners make products more usable for households and building managers. Chile also offers a connected urban customer base and demand for higher-value home systems, especially where product interoperability improves consumer choice. In February 2026, SUBTEL removed the former formal certification requirement for Matter-compliant devices, subject to stated compliance information requirements. This change can shorten the route for qualifying devices to enter Chile and gives vendors more reason to consider the country in their regional launch plans.

Argentina has a demand for connected security and energy controls, but import-dependent equipment remains sensitive to currency volatility and can become less affordable when local currencies weaken. Suppliers may therefore focus on lower-cost security products, staged upgrades, and distribution models that manage inventory carefully. Venezuela faces further constraints due to infrastructure conditions, currency controls, and low purchasing power, although demand for basic monitoring persists. Peru, Ecuador, Bolivia, Paraguay, and Uruguay offer developing opportunities where stronger connectivity and installer coverage can gradually widen the adoption of wireless devices.