Connected Living Room Market Size (2025 – 2030)

The Connected Living Room Market was valued at USD 59.82 Billion in 2024 and is projected to reach a market size of USD 99.12 Billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 8.78%.

Key Market Insights:

Wi-Fi 7’s support for 320 MHz channels and Multi-Link Operation delivers data speeds exceeding 40 Gbps, effectively removing latency issues in homes with multiple simultaneous streams. Samsung's Neo QLED series is already equipped with Wi-Fi 6E certification, leveraging the 6 GHz spectrum to offer four times the capacity compared to Wi-Fi 5. Regulatory approvals across regions such as Saudi Arabia, the European Union, and Brazil are accelerating the adoption of this technology. Meanwhile, router manufacturers are integrating tri-band radio solutions to ensure long-term compatibility with evolving home network requirements. This transition is driving increased interest in premium televisions and streaming devices with 8K capabilities, positioning advanced connectivity as a key competitive advantage in the smart home entertainment segment.

Market Drivers:

The adoption of advanced technologies is a key driver of market expansion.

The incorporation of advanced technologies and voice recognition in connected living room devices serves as a major catalyst for market growth. These innovations elevate the user experience by facilitating intelligent automation, customized content suggestions, and voice-activated functionalities, thereby transforming the living room into a more interactive and user-friendly space. For example, smart televisions powered by artificial intelligence can analyze viewing preferences to deliver personalized content recommendations, thereby boosting user engagement.

Internet of Things (IoT) devices further enhance convenience by enabling centralized control over various aspects of the living room environment, such as lighting and climate, through mobile apps or voice commands. This shift toward smarter home ecosystems appeals not only to tech enthusiasts but also to a wider demographic seeking comfort and a modern lifestyle.

The native integration of cloud gaming into smart TVs is emerging as a key driver of market growth.

LG has incorporated the Xbox application directly into its 2025 television lineup, allowing Game Pass Ultimate subscribers to access a vast library of games without the need for a dedicated console. This approach broadens access to high-quality gaming, particularly in price-sensitive markets where console ownership remains low. In parallel, service providers are offering bundled packages that combine fiber-optic internet, Wi-Fi 6E routers, and gaming subscriptions. These integrated offerings strengthen the value proposition of the connected living room ecosystem and contribute significantly to its market expansion.

Market Restraints and Challenges:

Challenges related to interoperability and device compatibility serve as significant barriers to market growth.

Interoperability and compatibility challenges across various brands and categories of connected living room devices present a considerable obstacle to market expansion. Consumers frequently encounter difficulties when attempting to integrate new devices with their existing setups due to inconsistent standards and communication protocols. This lack of uniform connectivity often results in a disjointed user experience, discouraging potential adopters from embracing smart living room solutions.

In addition, the swift evolution of technology contributes to the rapid obsolescence of devices, further intensifying compatibility concerns. To address these issues, industry players must collaborate to establish universal standards and frameworks that enable seamless interaction between products from different manufacturers. Resolving interoperability barriers is essential to improving user satisfaction and fostering broader adoption, ultimately driving growth in the connected living room market.

Market Opportunities:

Increasing consumer demand for enhanced home entertainment solutions is generating new opportunities within the market.

As more individuals prioritize enjoying entertainment in their homes, there is a rising need for integrated systems that deliver a seamless and immersive experience.

This trend is driven by the widespread availability of premium video streaming services, advanced gaming consoles, and diverse digital content platforms. Such developments offer market participants an opportunity to design and promote holistic solutions that address consumers’ evolving entertainment preferences. By providing products that integrate high-quality audio and video streaming, gaming capabilities, and smart home connectivity, companies can effectively capitalize on the expanding segment seeking all-encompassing home entertainment experiences.

CONNECTED LIVING ROOM MARKET REPORT COVERAGE:

Connected Living Room Market Segmentation:

Connected Living Room Market Segmentation by Product:

• Smart TVs & Streaming Devices
• Smart Speakers & Voice Assistants
• Gaming Consoles
• Smart Set-top Boxes (STBs)
• Home Theater Systems & Soundbars
• Smartphones and Tablets
• Computers and Laptops
• Connected Lighting
• Connected Security Systems
• Others

The smart TVs and streaming devices segment accounted for the highest revenue share. Rising global living standards have driven increased demand for premium home entertainment products, notably smart TVs. These devices feature built-in Wi-Fi and Ethernet connectivity, facilitating seamless access to internet-based streaming services, web browsing, and software updates. Additionally, integration with voice-activated assistants like Amazon Alexa and Google Assistant enables users to control their televisions through voice commands for functions such as channel selection, volume adjustment, and content search. Consumers are increasingly favoring streaming platforms such as Hulu, Netflix, and Disney+ on smart TVs, attracted by the availability of movies and shows in HD and ultra HD quality, alongside various accessibility options. Consequently, smart TVs have become a central component of the connected living room ecosystem.

Meanwhile, the connected security systems segment is poised for significant growth in the global market. Modern households are progressively adopting security solutions integrated with smart home technologies, offering more convenient, efficient, and intuitive home monitoring and protection. For example, smart cameras installed in living rooms can track activities, record video, and notify homeowners of unusual motion or sounds. These devices often link with other home systems, including lighting and alarms, to enhance security automation. Cameras equipped with motion sensors can automatically capture footage upon detecting movement and instantly alert the homeowner via smartphone or connected devices. The inclusion of cutting-edge technologies in security products has driven strong momentum in this segment. Notably, in January 2025, eufy launched the eufyCam S3 Pro outdoor security camera, featuring MaxColor Vision technology that delivers crisp, full-color images even in complete darkness.

Connected Living Room Market Segmentation By Application:

• New Construction
• Retrofit

The retrofit segment captured a notable share of global market revenue, reflecting strong demand for upgrading existing living spaces with connected technologies. Integrating connected technologies into existing living rooms has become a preferred method for transforming traditional homes into smart environments without the need for extensive renovations. The rising popularity of smart home devices has encouraged homeowners to adopt these technologies. Increasing awareness of the benefits provided by systems such as security solutions and voice assistants has driven demand due to their convenience and comfort. Additionally, connected lighting solutions are gaining traction for their ability to enhance energy efficiency and support sustainability efforts. According to Connected Places Catapult, over one million properties in the UK are projected to undergo retrofitting annually to meet the goal of upgrading more than 27 million homes by 2050, contributing to net-zero emissions targets. These trends are expected to boost the adoption of energy-saving connected technologies, thereby fueling growth within the retrofit segment.

Conversely, the new construction segment is anticipated to experience the fastest growth within the global connected living room market throughout the forecast period. The accelerated development of modern buildings designed to accommodate smart technologies—including advanced lighting, security systems, and home entertainment—facilitates the expansion of this segment. New construction presents a more straightforward and cost-efficient option for implementing connected technologies compared to retrofitting existing homes. The innovative design of contemporary homes allows for seamless integration of these systems while enabling customization to meet individual preferences and requirements. Features such as recessed lighting, built-in speakers, and smart thermostats can be incorporated directly into the architectural framework, preserving aesthetic appeal while enhancing functionality. Furthermore, governments worldwide are promoting smart city initiatives by encouraging builders and developers to incorporate technology-forward designs in their projects, thereby driving demand for connected living room solutions among new homeowners.

Connected Living Room Market Segmentation By End-use:

• Home Entertainment & Media Streaming
• Home Automation & Control
• Gaming & E-sports
• Others

The home entertainment and media streaming segment held the largest revenue share, driven by the widespread adoption of video and music streaming services among consumers. This expansion has been fueled by rising consumer disposable incomes and an increasing preference among homeowners for premium entertainment experiences. Connected living rooms offer the advantage of managing multiple entertainment devices through a single, unified interface—whether via voice commands, remote controls, or mobile applications. This streamlined control enhances user convenience, thereby strengthening the attractiveness of connected solutions within living spaces.

Meanwhile, the home automation and control segment is projected to register considerable growth within the connected living room market. The surging demand from homeowners for remote management of home functions—such as lighting and temperature—via smartphones and other devices is driving adoption of connected technologies. For example, companies like Philips Hue, LIFX, and Sengled provide Wi-Fi-enabled light bulbs that can be adjusted remotely or through voice commands, enabling users to change colors, dim, or brighten lights according to their preferences. Additionally, smart motion sensors can automatically activate lights upon detecting movement and switch them off after periods of inactivity, promoting energy efficiency. Products like the Nest Thermostat and Ecobee allow users to customize temperature settings, monitor energy consumption, and schedule heating and cooling from smartphones or voice assistants. This growing suite of solutions is expected to significantly boost demand for connected living room technologies among contemporary consumers.

Connected Living Room Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

North America captured a substantial share of global market revenue, supported by advanced digitalization efforts and the prominent presence of leading industry players across the region. The widespread adoption of over-the-top (OTT) streaming platforms such as Netflix, Hulu, Disney+, and Apple TV+ has notably altered consumer content consumption habits in North America. This shift has fueled demand for smart TVs, streaming devices, and advanced audio systems, as consumers increasingly seek seamless access to high-quality content directly in their living rooms. Furthermore, the deployment of 5G technology across the region has facilitated the streaming of high-definition (HD) and 4K (ultra-HD) content, enhanced online gaming experiences, and improved connectivity for smart devices with minimal latency. These advancements significantly boost the performance and appeal of connected living room products including smart TVs, gaming consoles, and voice-activated assistants.

Within this region, the United States accounted for a dominant revenue share, supported by the widespread popularity and adoption of music and video streaming services, coupled with the ongoing expansion of 5G infrastructure. Video gaming remains a leading form of entertainment in the U.S., bolstered by robust sales of gaming consoles such as PlayStation 5, Xbox, and Nintendo Switch, alongside the growing prevalence of cloud gaming platforms.

The Middle East & Africa (MEA) region is projected to experience notable growth during the forecast period. Rapidly urbanizing and technologically advanced economies such as Saudi Arabia, the UAE, and South Africa boast a tech-savvy population eager to embrace the latest digital innovations. This demographic represents a valuable consumer base for companies developing smart technologies, including connected living room solutions. In densely populated urban areas where living space is limited, consumers increasingly prefer efficient, multifunctional systems that deliver high-quality entertainment and convenience. Additionally, the high penetration of smartphones across the region facilitates remote management of entertainment and smart home devices, further accelerating market growth.

Within the MEA region, the UAE accounted for a leading revenue share, driven by the government’s accelerated residential development initiatives that prioritize the integration of smart technologies. The affluent consumer base in the country demonstrates a strong willingness to invest in premium smart home products such as smart TVs, home theater systems, and voice assistants, thereby enhancing the overall connected living room experience.

COVID-19 Impact Analysis:

The COVID-19 pandemic positively influenced the Connected Living Room Market, as lockdowns, social distancing protocols, and the transition to remote work and online education heightened demand for home entertainment solutions. With more time spent at home, consumers sought to enhance their living room environments, resulting in a notable increase in sales of smart TVs, streaming devices, gaming consoles, and other connected products. The rising focus on digital content consumption, online gaming, and virtual communication further accelerated the adoption of connected living room technologies, as users prioritized upgrading their home entertainment setups. Additionally, the pandemic hastened the shift toward on-demand streaming services, given the limited access to traditional entertainment venues such as cinemas and live events. As global conditions stabilize, the connected living room trend is expected to persist, supported by continuous technological innovation, growing consumer preference for seamless and integrated entertainment experiences, and expanding adoption of smart home automation systems.

Latest Trends and Developments:

ASSA ABLOY announced the acquisition of Uhlmann & Zacher GmbH, a Germany-based company specializing in access-control knobs, handles, and complementary software solutions. This strategic acquisition is intended to enhance ASSA ABLOY’s market presence and expand its product portfolio within Germany. Uhlmann & Zacher GmbH’s offerings include electronic locking cylinders, door handles and knobs, wall-mounted readers, OEM products, and furniture locks. The company serves a diverse range of sectors, such as healthcare facilities, residential properties, commercial offices, and industrial plants.

Key Players in the Market:

1. Samsung Electronics Co., Ltd.
2. Sony Corporation
3. Apple Inc.
4. Hitachi, Ltd.
5. Google LLC
6. Panasonic Corporation
7. LG Corporation
8. Microsoft Corporation
9. Amazon.com, Inc.
10. Roku, Inc.

Market News:

• July 2025: Hisense introduced the 116-inch RGB miniLED UXQ TV, marking the first television to feature per-sub-pixel backlighting technology, positioning it as a strong competitor against other flagship displays.
• July 2025: Ocilion launched Android TV Operator-Tier set-top boxes targeted at European telecommunications providers, offering customizable user experiences and unified search functionality.
• May 2025: Amazon unveiled a new line of Alexa+ devices equipped with larger displays and enhanced on-device AI capabilities, expanding voice-first control across a network of 140,000 compatible smart products.