The U.S. Smart Home Market is Expected to Reach USD 65.87 Billion by 2030

The rising disposable income along with advancement in digitalization in the region is driving the U.S. smart home market demand during the forecast period.

The U.S. Smart Home Market size was valued at USD 22.91 billion in 2023, and is predicted to reach USD 65.87 billion by 2030, at a CAGR of 16.3% from 2024 to 2030, according to the new research by Next Move Strategy Consulting. The U.S. smart home market growth is significantly driven by the relatively affluent consumer base in the region. With considerable purchasing power, American households show a strong inclination towards investing in premium home technologies and automation solutions, including smart home products.

Data from the US Bureau of Labor Statistics (BLS) reveals a substantial increase in disposable income among American households in 2022, with average annual expenditures reaching USD 72,967—an impressive 9.0% surge from the previous year. As disposable income levels continue to rise, the demand for smart homes is expected to further escalate, solidifying their status as indispensable components of modern American households.

Moreover, the advancement of digitalization, combined with a strong focus on Energy Efficiency Initiatives, drives the growth of the smart home market in the US. As consumers increasingly adopt smart home technologies to enhance convenience and control in an increasingly digital world, there is a parallel shift towards prioritizing energy efficiency and sustainability. This dual momentum encourages widespread adoption of smart thermostats, lighting systems, and appliances, empowering homeowners to reduce energy consumption and costs.

The synergy between digitalization and energy-consciousness propels the smart home market forward as Americans actively seek innovative solutions to make their residences smarter and more eco-friendly. Projections indicate the US smart home market growth over the next five years, with user penetration expected to reach 68.64% by 2027, reflecting a notable 20.7 percentage point increase from 2023.

However, the progress of the smart home market faces a significant hurdle stemming from security apprehensions surrounding interconnected systems. Smart devices like thermostats, cameras, and door locks are susceptible to cyber intrusions, posing threats to the privacy and safety of residents. This vulnerability often results from weak passwords or inadequate security measures within Wi-Fi networks. Exploiting these weaknesses, cyber attackers infiltrate systems, potentially manipulating devices or gaining access to sensitive information.

On the other hand, the incorporation of blockchain technology holds significant promise in strengthening the security and privacy of smart home systems. This is achieved through the encryption and secure storage of sensitive smart home data, empowering users to control access to their information and reducing the risk of unauthorized intrusion.

Blockchain verifies device identities, ensuring that only trusted devices participate within the smart home network, and streamlines operations through tamper-proof smart contracts. Moreover, it decentralizes device control, minimizing vulnerabilities and enabling transparent management of access control and permissions. 

The integration of blockchain in smart homes not only enhances security and privacy but also cultivates a safer and more confidential environment. As a result, it is poised to generate significant growth opportunities within the market.

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Several key market players operating in the U.S. smart home industry include LG Electronics, ASSA ABLOY, Amazon Inc., Samsung Electronics, Sony Group Corporation, Emerson Electronic Co., Johnson Controls International PLC., Centrica Connected Home Limited, Resideo Technologies, Inc., Apple Inc., and others. 

Key Insights from the U.S. Smart Home Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the U.S. smart home market is provided in the report.

• The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

• The report provides an analysis of the U.S. smart home market share and competitive landscape of key players in the industry.

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