North America Smart Home Market by Product Type (Smart Lighting, Smart Home Security & Surveillance, Smart Entertainment, and Smart Appliances), by Communication Protocol (Wi-Fi, Zigbee, Z-Wave, Bluetooth, and Thread), by Smart Home Hubs (Standalone Hubs

North America Smart Home Market by Product Type (Smart Lighting, Smart Home Security & Surveillance, Smart Entertainment, and Smart Appliances), by Communication Protocol (Wi-Fi, Zigbee, Z-Wave, Bluetooth, and Thread), by Smart Home Hubs (Standalone Hubs and Built-in Hubs), by Voice Assistants Integration (Amazon Alexa, Google Assistant, Apple Siri, and Others), by Smart Home Compatibility with Smartphones (iOS and Android), by Installation, (DIY Installation and Professional Installation), and by Sales Channel (Online Retailers and Offline Retailers) – Opportunity Analysis and Industry Forecast, 2024–2030

The North America Smart Home Market size was valued at USD 41.31 billion in 2023, and is predicted to reach USD 122.04 billion by 2030, at a CAGR of 16.7% from 2024 to 2030.

The rapid progress of digitalization, along with a strong emphasis on energy efficiency initiatives in countries such as the U.S. and Canada, drives the expansion of the smart home market in the region. As consumers increasingly incorporate smart home technologies into their daily lives to streamline operations and exert greater control, the market experiences significant growth. In the U.S., the smart home market is expected to steadily expand over the next five years, with user penetration projected to reach 68.64% by 2027, indicating a 20.7% surge from 2023. This dual impetus of digitalization and energy consciousness motivates Americans to seek innovative solutions for smarter, more environmentally friendly homes.

Moreover, the rising demand for smart home products in the U.S. and Canada is fueled by cybersecurity concerns. A notable factor driving this demand is the increasing apprehension surrounding cybersecurity incidents. In Canada, a significant portion of the population encountered cybersecurity issues in 2022, with over 70% reporting incidents—a 12% increase from 2020. This surge highlights the urgent need for enhanced security measures within smart homes to effectively combat cyber threats. The desire for increased control and monitoring of connected devices, coupled with a concerted effort to safeguard personal data and privacy, further drives the adoption of smart home security solutions, emphasizing the growing importance of cybersecurity in stimulating market growth.

However, security concerns pose a substantial obstacle to the growth of the smart home market. Vulnerabilities in devices such as thermostats, cameras, and door locks can expose residents to hacking threats, jeopardizing their privacy and safety.

On the contrary, the integration of blockchain technology into smart home devices offers a promising avenue to enhance the security and confidentiality of smart home systems. Recognized for its robust security features and transparent nature, blockchain encrypts and securely stores sensitive smart home data, empowering users to control access to their information and reduce the risk of unauthorized breaches. By verifying device identities, blockchain ensures that only trusted devices interact within the smart home network, while also automating tasks through tamper-proof smart contracts. Moreover, blockchain technology decentralizes device control, mitigates vulnerabilities, and simplifies transparent access control and permissions management. Through the integration of blockchain into smart homes, security and privacy are enhanced, fostering a more secure and private smart home environment. As a result, this integration is poised to create abundant growth opportunities for the market.

Segment Overview

The North America Smart Home industry is segmented based on product type, communication protocol, smart home hubs, voice assistant integration, smart home compatibility with smartphones, installation, and sales channel.
By product type, the market is categorized into smart lighting, smart home security and surveillance, smart entertainment, and smart appliances.
By communication protocol, the market is classified into Wi-Fi, Zigbee, Z-Wave, Bluetooth, and Thread.
By smart home hubs, the market is segmented into standalone hubs and built-in hubs.
By voice assistant integration, the market is divided into Amazon Alexa, Google Assistant, Apple Siri, and others.
By smart home compatibility with smartphones, the market is divided into iOS and Android.
By installation, the market is classified into DIY installation and professional installation.
By sales channel, the market is classified into online retailers and offline retailers.

Regional Analysis

The U.S. Holds the Dominant Market Share in the North America Smart Home Market

The rapid pace of digitalization, coupled with a strong focus on Energy Efficiency Initiatives, drives the advancement of the smart home market in the US. Increasingly, consumers are adopting smart home technologies to enhance convenience and control over their digitally interconnected daily routines. Simultaneously, an emphasis on energy efficiency and sustainability fuels the widespread adoption of smart thermostats, lighting, and appliances, empowering homeowners to reduce energy usage and expenses. This dual push of digitalization and energy awareness propels the smart home market forward as Americans seek innovative solutions to make their homes smarter and more eco-friendly. Projections indicate a steady growth trajectory for the US smart home market over the next five years, with user penetration expected to reach 68.64% by 2027, marking a 20.7 percentage point increase from 2023.

Furthermore, the expansion of the smart home market in the United States is significantly driven by the comparatively higher disposable income of consumers in this region. With greater purchasing power, American households demonstrate a preference for investing in high-end home technologies and automation solutions, including smart home products. According to the US Bureau of Labor Statistics (BLS), disposable income in the US witnessed a noticeable increase in spending patterns among American households in 2022. The average annual expenditures for all consumers totaled USD 72,967, reflecting a substantial 9.0% increase from the previous year. As disposable income levels continue to rise, the demand for smart homes is expected to grow, cementing their status as essential components of modern American households.

Key Market Players

Leading players operating in the North America Smart Home Market 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.

KEY BENEFITS
• The North America Smart Home market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the North America Smart Home market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.