Smart Homes & Buildings Market Size (2025 – 2030)

The Smart Homes & Buildings Market was valued at USD 89.60 billion in 2024 and is projected to reach a market size of USD 100.35 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 12%.

Smart homes and buildings use connected technologies to automate and optimize residential and commercial environments. These systems include smart lighting, HVAC, security, energy management, and voice-controlled devices. Integration of IoT and AI enables real-time monitoring and remote control. Smart buildings improve energy efficiency, safety, and occupant comfort. They support predictive maintenance and data-driven decisions. Residential users benefit from convenience and personalization. Commercial buildings gain operational efficiency and cost savings. Cloud platforms and mobile apps improve accessibility. Smart infrastructure adapts to user behavior and environmental conditions. Sensors and controllers work together to manage systems intelligently. Builders and developers integrate smart features to increase property value. Governments promote smart construction through incentives and regulations. Connectivity and interoperability are key design factors. Smart homes support aging in place and health monitoring. Buildings use automation to reduce waste and optimize resources. The market includes new construction and retrofit projects. The demand for smart homes and buildings is growing with urbanization and digital lifestyles. Smart solutions align with sustainability goals and carbon reduction targets. Technology providers collaborate with the real estate and utility sectors. The market evolves with innovation, affordability, and consumer awareness. Smart homes and buildings represent a shift toward intelligent living and responsible infrastructure.

Key Market Insights:

• Smart home device penetration in U.S. households is very high, with around 85% of Americans owning at least one smart home device.
• In the smart home sector, control & connectivity lead growth. Control & connectivity devices are projected to reach 41.7 million units by 2025 with a 32% CAGR.
• Smart building automation improves productivity. Smart buildings can boost occupant productivity by 10–30%, with payback over 2-5 years.
• Smart lighting and HVAC systems account for over 60% of installed smart components in residential buildings, driven by energy efficiency and automation demand.
• Buildings contribute 30-40% of total city emissions, and smart technologies are expected to reduce building-related emissions by 80-90% by 2050, supporting climate goals.
• Green smart buildings can cut emissions by 36.5% in residential and 21.2% in commercial sectors.
• Household penetration of smart home systems is projected to reach 77.6% globally by 2025, and is expected to climb to 92.5% by 2029, reflecting widespread consumer adoption.

Market Drivers:

The rising demand for energy efficiency is primarily driving the smart homes & buildings market.

Energy efficiency is a major driver of smart homes and buildings. Automated systems reduce energy waste and optimize usage. Smart thermostats and lighting adjust based on occupancy and time. Real-time data helps users monitor consumption. Buildings use predictive analytics to manage HVAC and lighting. The energy savings features lower utility costs and reduce carbon emissions. Governments support efficiency through green building codes. Businesses adopt smart systems to meet sustainability goals. Consumers prefer eco-friendly homes with smart features. Energy efficiency drives adoption across residential and commercial sectors.

Growth in urbanization and connected living is driving the smart homes & buildings market.

Urbanization and digital lifestyles boost demand for smart infrastructure. Cities expand with high-tech residential and commercial spaces. Smart homes offer convenience, safety, and remote control. Urban dwellers seek integrated systems for daily tasks. Connectivity supports mobile access and automation. Builders include smart features to attract buyers. IoT devices connect appliances, lighting, and security. Urban growth increases demand for scalable smart solutions. Smart buildings support traffic, energy, and facility management. Connected living drives innovation and market expansion.

Market Restraints and Challenges:

High upfront costs and integration complexity limit the adoption of smart homes & buildings technology. Smart systems require investment in hardware, software, and installation. Retrofitting older buildings creates technical challenges. Compatibility between devices and platforms is often difficult. Users face learning curves and maintenance needs. Budget constraints affect small businesses and homeowners. Long-term savings may not justify initial expenses. Lack of standardization slows deployment. Security and privacy concerns impact trust. These challenges require education, incentives, and simplified solutions.

Market Opportunities:

Smart homes offer strong opportunities in health and assisted living. Aging populations need remote monitoring and emergency alerts. Smart sensors track movement, temperature, and health metrics. Voice assistants support daily routines and medication reminders. Integration with healthcare systems improves response time. Builders design homes for aging-in-place. Families prefer smart solutions for safety and independence. Health-focused features increase property value. Demand grows for personalized and secure environments. This segment supports wellness and long-term care innovation.

SMART HOMES & BUILDINGS MARKET REPORT COVERAGE:

Smart Homes & Buildings Market Segmentation:

Smart Homes & Buildings Market Segmentation By Component

• Smart Lighting
• Smart Security Systems
• Smart HVAC
• Smart Energy Management
• Others

Smart lighting is the largest component in the smart homes & buildings market. It is widely used in homes and buildings for energy savings and comfort control. Automated lighting adjusts based on time, occupancy, and daylight. Users prefer remote control and scheduling features. Smart bulbs and sensors are easy to install. Builders include lighting systems in new projects. Commercial buildings use lighting for safety and efficiency. Smart lighting supports sustainability goals. It reduces electricity bills and improves user comfort. This segment is leading the smart homes & buildings market due to high demand and broad application.

Smart security systems are the fastest-growing component in the smart homes & buildings market. They include cameras, sensors, alarms, and smart locks. Users want safety and remote monitoring. Mobile apps allow real-time alerts and control. Security systems are popular in homes and offices. Integration with voice assistants adds convenience. Demand rises with urbanization and privacy concerns. Builders offer pre-installed security packages. Cloud storage and AI improve system performance. This segment grows fast due to rising awareness and technology upgrades.

Smart Homes & Buildings Market Segmentation By Building Type

• Residential Homes
• Commercial Buildings
• Industrial Facilities
• Others

Residential homes are the largest building type in the smart homes & buildings market. Homeowners adopt smart systems for comfort and control. Smart lighting, HVAC, and security are common features. Voice assistants and mobile apps enhance usability. Builders include smart features in new homes. Retrofitting is also popular. Families prefer automation for safety and savings. Smart homes support aging-in-place and health monitoring. The demand for smart homes & buildings is increasing with digital lifestyles. Residential use dominates due to volume and personalization.

Commercial buildings are the fastest-growing building type in the smart homes & buildings market. Offices, malls, and hotels use smart systems for efficiency. Energy management and security are key priorities. Smart buildings reduce operational costs. Facility managers use data for maintenance and planning. Touchless access and air quality sensors improve safety. Businesses adopt smart solutions for sustainability. Commercial growth is driven by urban expansion. Smart infrastructure supports productivity and brand value. This segment is growing at the fastest rate in the smart homes & buildings market with digital transformation.

Smart Homes & Buildings Market Segmentation By Technology

• Internet of Things (IoT)
• Artificial Intelligence (AI)
• Cloud Computing
• Wireless Communication
• Others

Internet of Things (IoT) is the leading technology in the smart homes & buildings market. IoT connects devices for real-time control and automation. Sensors, controllers, and gateways work together. Users monitor systems through apps and dashboards. IoT supports smart lighting, HVAC, and security. Builders use IoT for integrated designs. Data from devices improves decision-making. IoT enables predictive maintenance and energy savings. It is widely adopted across homes and buildings. Internet of Things (IoT) is leading in the smart homes & buildings market due to connectivity and flexibility.

Artificial Intelligence (AI) is the fastest-growing technology segment. AI analyzes data to optimize building performance. It supports smart energy, security, and comfort. AI learns user behavior and adjusts systems. Voice assistants and chatbots use AI for interaction. Predictive analytics improve maintenance and safety. AI enhances personalization and automation. Builders use AI for smart planning. The demand for artificial Intelligence technology in the smart homes & buildings market is growing with innovation and smart city projects. This segment grows fast due to intelligence and adaptability.

Smart Homes & Buildings Market Segmentation By Application

• Energy Optimization
• Security and Surveillance
• Comfort and Convenience
• Health Monitoring
• Others

Energy optimization is the largest application in the smart homes & buildings market. Smart systems reduce energy waste and improve efficiency. Lighting and HVAC adjust based on usage and time. Users monitor consumption through dashboards. Buildings meet green standards with smart energy tools. Governments support energy-saving technologies. Businesses lower utility costs with automation. Energy optimization supports sustainability goals. It is widely used in homes and commercial spaces. This segment is leading in the smart homes & buildings market due to cost savings and positive environmental impact.

Health monitoring is the fastest-growing application in the smart homes & buildings market. Smart homes track health metrics and movement. Sensors detect falls, temperature, and activity. Voice assistants support medication reminders. Elderly care benefits from remote monitoring. Integration with healthcare systems improves response. Builders design homes for aging-in-place. Families prefer smart safety solutions. The demand for health monitoring in the smart homes & buildings market is growing with aging populations and wellness trends. This segment is growing quickly due to health awareness and innovation.

Smart Homes & Buildings Market Segmentation: Regional Analysis:

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

North America is the largest region in the smart homes & buildings market. The region has high adoption of smart technologies. Consumers in this region prefer automation and connected living. Builders include smart features in new projects. Government incentives support smart infrastructure. E-commerce boosts device sales. Commercial buildings use smart systems for efficiency. Data privacy and security standards guide development. North America leads due to mature markets and digital lifestyles. This region dominates the smart homes & buildings market with strong demand and innovation.

Asia-Pacific is the fastest-growing region in the smart homes & buildings market. Urbanization and rising incomes boost adoption. Smart homes and buildings expand in cities across this region. Builders offer affordable smart solutions. Mobile access and social media influence buying. Governments invest in smart city projects. Consumers seek convenience and safety. E-commerce supports product availability. Asia-Pacific is growing rapidly with dynamic markets and tech-savvy users. This region is growing at the fastest rate in the smart homes & buildings market's future potential.

Smart Homes & Buildings Market COVID-19 Impact Analysis:

COVID-19 accelerated the adoption of smart homes and buildings. Remote work increased demand for connected living spaces. Users invested in smart lighting, security, and climate control. Commercial buildings adopted touchless access and air quality monitoring. Health concerns drove interest in automation and remote management. E-commerce boosted smart device sales. Builders adapted designs for flexible and safe environments. The pandemic highlighted the value of smart infrastructure. Recovery includes hybrid workspaces and wellness features. COVID-19 reshaped priorities in smart living and building design.

Latest Trends and Developments:

Smart homes and buildings are evolving with AI, IoT, and sustainability. Voice control and mobile apps enhance user experience. Energy dashboards support real-time monitoring. Smart sensors improve safety and efficiency. Builders use modular and prefabricated smart systems. Integration with renewable energy gains traction. Cloud platforms enable remote facility management. Data analytics support predictive maintenance. Interoperability improves device compatibility. Green certifications guide buyer decisions. These trends reflect innovation, convenience, and environmental responsibility.

Key Players in the Market:

1. Siemens AG
2. ABB Ltd.
3. Legrand SA
4. Honeywell International Inc.
5. Johnson Controls International plc
6. Schneider Electric SE
7. Crestron Electronics Inc.
8. Lutron Electronics Co., Inc.
9. Samsung Electronics Co., Ltd.
10. Panasonic Corporation

Latest Market News:

• May 2025: Schneider Electric, the leader in the digital transformation of energy management and automation, has launched its first Impact Building in Dubai as part of its new Impact Buildings Program.   As the world’s most sustainable company, Schneider Electric’s Impact Buildings Program aims to drive sustainability through its own global commercial real estate using best-in-class EcoStruxure solutions, software, and services. These include EcoStruxure Building Operation, EcoStruxure Power Monitoring Expert, EcoStruxure Building Data Platform, and Planon Integrated Workplace Management. The interconnectivity of these solutions will drive sustainability, resilience, and efficiency, as well as improved occupant experience
• February 2025: Samsung has teamed up with Yuchang E&C to expand the AI-driven smart modular construction market. These two companies signed an MOU, agreeing to collaborate in developing innovative AI-powered modular products. As part of the partnership, Samsung will integrate its ‘SmartThings Pro’ AI solution into Yoochang E&C’s modular buildings. This cutting-edge system enhances the building experience by offering energy-efficient management, remote control of maintenance facilities, and connectivity for a range of devices such as air conditioners, refrigerators, and lighting.