The global smart home device market is projected to remain flat in 2024, with only a 0.6% growth, reaching 892.3 million units, according to the International Data Corp. (IDC). This slow growth is due to market saturation and longer product replacement cycles in regions like the United States.
However, emerging markets are expected to drive a rebound in 2025, pushing shipments to grow by 4.4%, reaching 931.1 million devices. Home security products, such as connected cameras and door locks, are becoming the most popular category, accounting for over 25% of total shipments.
“The upside of additional security camera purchases is often much larger than the upside of follow-up smart TV or smart speaker purchases as consumers go through their smart home journey,” said Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers.
In contrast, smart speakers, which were once a driving force in the smart home sector, are expected to decline by 8.8% in 2024. Despite a minor recovery in 2025, the category is simplifying, with companies like Google and Amazon prioritizing basic voice input and fewer additional features.
AI advancements are also transforming other segments, such as smart vacuums. Companies like roborock and Eufy are focusing on features like object recognition and mopping, improving user experience and maintaining their leadership in the market.
IDC forecasts the smart home market to grow at a compound annual growth rate (CAGR) of 5.6% between 2024 and 2028, with shipments expected to reach 1.1 billion units by 2028. Emerging markets and AI-driven innovations are anticipated to play key roles in this growth.