Smart home market in Europe and North America set for double-digit growth
The smart home market in Europe and North America is set to expand steadily towards 2029, according to the latest “Smart Homes and Home Automation” report from Berg Insight. The study estimates that 139 million homes across both regions were already equipped with at least one smart home system by the end of 2024.
For eeNews Europe readers, this matters because accelerating adoption of connected devices, platforms and standards will potentially shape demand for wireless modules, gateways, sensors and control ICs designed into next-generation residential systems. The figures also give engineers and OEMs a useful backdrop for evaluating which product categories and connectivity technologies are likely to see the strongest pull from the field.
Adoption climbs across Europe and North America
Berg Insight defines a smart home system as one that can be accessed remotely via a smartphone app or web portal, spanning security, energy management, lighting, AV, appliances, service robotics and irrigation. In North America, the installed base reached about 305.8 million smart home systems at the end of 2024, corresponding to 66.7 million smart homes and around 44.8 percent household penetration. Revenues from hardware and services in the region are projected to grow from US$52.4 billion in 2024 to US$81.8 billion in 2029, a compound annual growth rate (CAGR) of 9.3 percent.
Europe is catching up in volume, although penetration still trails North America. The EU27+3 countries accounted for 240.1 million smart home systems and around 72.8 million smart homes in 2024, equal to 30.7 percent of households. European revenues reached €39.3 billion in 2024 and are forecast to climb to €68.3 billion by 2029, implying an 11.7 percent CAGR. Overall, Berg Insight expects the number of smart homes in Europe to reach 102.8 million by the end of the forecast period.
Vendors compete from point solutions to whole-home platforms
Berg Insight notes that many users enter the smart home market through single-function point products such as thermostats, smart plugs, connected cameras, smart speakers or floor-cleaning robots. These are offered both by established OEMs – including lighting, HVAC and appliance brands – and by pure-play entrants focused on connected devices.
On the whole-home side, traditional home automation specialists increasingly compete with communications and security service providers that bundle professionally monitored alarm services with smart home features. For semiconductor vendors and device makers, this mix potentially broadens the addressable market, from low-cost radio-equipped sensors to premium gateways and controllers capable of aggregating multiple wireless standards.
Standards, AI, and energy efficiency drive next phase
The report also highlights technology and business trends that could reshape the smart home market over the next five years. Topics include the impact of Matter and Thread on interoperability, the possible role of AI in revitalising voice assistants and automation, and the use of connectivity for smarter energy-management functions at a time of volatile energy prices. Other themes range from increasing use of cellular IoT in home security to the emergence of paid digital services layered on top of connected devices.
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