What will be the size of the U.S. smart connected market in 2030?

According to Next Move Strategy Consulting, the size of the U.S. smart home market is estimated to be at USD 65.87 billion in 2030.

What are the factors that enhance the U.S. smart home market growth?

The integration of artificial intelligence and blockchain technology is expected to create ample growth opportunities for the U.S. smart home market.

What are the restraining factors which affect the growth of U.S. smart home market?

Security and data privacy concerns related to smart home appliances acts as restraining factors to the growth of U.S. smart home market.

What was the size of the U.S. smart home market in 2023?

According to the Next Move Strategy Consulting, the size of the U.S. smart home market is estimated at USD 22.91 billion in 2023.

U.S. Smart Home Market Value Analysis

Q: Which are the key players operating in the U.S. smart home market?

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

U.S. Smart Home Market Overview

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. A smart home alternatively referred to as a connected home, describes a dwelling outfitted with sophisticated technology and automated systems that facilitate the centralized management and surveillance of diverse household devices, appliances, and security features via a unified network.

These intelligent home assistant devices can be controlled remotely and frequently respond to voice commands or predetermined schedules, enhancing convenience, energy efficiency, and security for homeowners. Typical components of connected homes encompass smart thermostats, lighting systems, security cameras, voice assistants, and other interconnected devices tailored to enhance the overall residential lifestyle.

Digitalization and Energy Efficiency Initiatives Propels the Market Growth

The rapid advancement of digitalization, coupled with a robust emphasis on energy efficiency initiatives, serves as a driving force behind the expansion of the smart home market in the US. As consumers increasingly embrace connected home technologies to augment convenience and control in an increasingly digitally connected world, there is a simultaneous shift towards prioritizing energy efficiency and sustainability. This dual momentum encourages widespread adoption of smart thermostats, lighting systems, and appliances, empowering homeowners to curtail energy consumption and lower costs.

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

High Disposable Income Drives the Growth of the Market

The U.S. smart home market growth is significantly fueled by the relatively affluent consumer base in the region. With considerable purchasing power at their disposal, American households exhibit a heightened inclination towards investing in premium home technologies and automation solutions, including connected 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 million that is an impressive 9.0% surge from the previous year. As disposable income levels continue to rise, the demand for wireless home systems is expected to escalate further, solidifying their status as indispensable components of modern American households.

Security and Privacy Apprehensions Act as a Barrier to the Expansion of the Market

The advancement of the U.S. smart home industry encounters a notable challenge due to concerns surrounding the security of interconnected systems. Devices such as thermostats, cameras, and door locks are vulnerable to cyber intrusions, posing risks to residents' privacy and safety. This susceptibility often arises from weak passwords or insufficient security measures within Wi-Fi networks.

Cyber attackers exploit these vulnerabilities to gain unauthorized entry, potentially manipulating devices or accessing sensitive information. To address these concerns, homeowners utilizing smart technology must prioritize robust password protocols, routinely update device firmware, and fortify their home networks to diminish the risk of cyber threats and uphold the integrity of their connected homes against potential breaches.

Integration of Blockchain Technology into Smart Home Devices Presents Lucrative Opportunities for Market Expansion

Recognized for its robust security and transparent characteristics, blockchain holds considerable potential in fortifying the security and privacy of smart home systems. This is achieved through the encryption and secure storage of sensitive connected home data, empowering users to regulate access to their information and mitigating the risk of unauthorized intrusion.

By validating device identities, blockchain ensures that only trusted devices participate within the connected home network, while also streamlining operations through tamper-resistant smart contracts.

Additionally, blockchain decentralizes device control, minimizing vulnerabilities and facilitating transparent management of access control and permissions. The incorporation of blockchain into connected homes not only strengthens security and privacy but also fosters a safer and more confidential environment. Consequently, it is poised to generate substantial growth opportunities within the U.S. smart home market.

Competitive Landscape

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

U.S. Smart Home Market Key Segments

By Product Type

Smart Lighting
- Smart Bulbs
- Smart Light Strips
- Smart Switches
Smart Home Security and Surveillance
- Smart Cameras
- Video Doorbells
- Smart Locks
- Security System
Smart Entertainment
- Smart TVs
- Smart Speakers
- Streaming Devices
Smart Appliances
- Smart Refrigerators
- Smart Ovens
- Smart Washing Machines
- Smart Dishwashers
- Smart Home HVAC Management
- Other Smart Appliances

By Communication Protocol

Wi-Fi
Zigbee
Z-wave
Bluetooth
Thread

By Smart Home Hubs

Standalone Hubs
Built-in Hubs

By Voice Assistants Integration

Amazon Alexa
Google Assistant
Apple Siri
Others

By Smart Home Compatibility with Smartphones

iOS
Android

By Installation

DIY Installation
Professional Installation

By Sales Channel

Online Retailers
Retailers

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 22.91 Billion
Revenue Forecast in 2030	USD 65.87 Billion
Growth Rate	CAGR of 16.3% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Digitalization and energy efficiency initiatives propels the market growth. High disposable income drives market growth
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

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